Then to be safe, I like to add 10% to it as a buffer when/if cost overruns occur.

A couple expense assumptions:Insurance: .6% of market value per year ($1300 to $1700 for garden variety SFH)Repair buffer: $50/moPM: 8% of gross rent + 80% of first months rent HOA: Ranges from $0 to $50/mo.

When those elements align, it gives you a buffer to handle the inevitable challenges that come with a fix and flip or hold.The entry price, especially, is such a game-changer—it can turn even a tricky project into a win if it’s favorable enough.You have to be able to put together all the moving parts, and make all the planets align! 

I average these two numbers and use that as a baseline, adding a reasonable buffer to set the threshold.This approach helps ensure that tenants don’t feel micromanaged but also protects you from excessive utility usage.

IE stream buffers slopes  leave tree's replant regulations etc etc..

Your PM is there to act as a buffer between you and the property.

Just make sure you give yourself 4-6 months of buffer time to look for the next property once the lease is signed on your current!

Remember to always budget 10-25% (depending on age/condition) extra as a buffer.

And also try to prepare a buffer for unexpected issues (there's always something!).

Plus, holding onto it gives you a buffer if the market shifts.