- Are you confident that there is no unforeseen deferred maintenance on these units?

Plus they will look for borrowers with better liquidity to handle any unforeseen issues.

We all have problems that come our way, we all have unforeseen expenses, and we all have good reasons why those things happen.  

My old Jewish Attorney once told me"you'll NEVER lose money taking a small profit"but nowadays because of the unforeseen & inevitable contingencies I won't do it for less than 18-28% !!!

Granted there is unforeseen issues, but a cushion should be put in place just for that.

Unforeseen issues often come up during construction in normal times, but even more so in the last couple years with materials and labor shortages, permitting delays, among other challenges.

However, it is highly advisable to keep some of these funds set aside in an emergency reserve for unforeseen repairs and/or vacancies. 

Add in a contingency of 20% or so to cover anything unforeseen.  

I also flag categories that I know I can cut back on (for example granite countertops to something cheaper like butcher block or composite) in the case that something unforeseen comes up (and it ALWAYS does)!!

Have 'unforeseen contingency ' backup cash at hand.Think of it like a snowball going down hill.