Don't let the "unforeseen" kill your ROI!  

No how I operate is that if something unforeseen where to happen in the first year like the furnace going out I would split the cost with the new owner or figure out something.

Even if you can buy with no money down you need capital as reserves for unforeseen problems like repairs.  

Scope of Work with any contractor must be agreed upon at outset with clear expectations about how unforeseen expenses will be handled and budgeted.

That's pretty awesome that even after the $25k of unforeseen electrical updates that it's still a fantastic deal. 

That is, until one unforeseen issue threw the whole thing into chaos.I hope by writing this post, I can help others realize that real estate investing requires creativity, perseverance, and the ability to pivot regardless of experience level or how foolproof the plan is.The Fateful Story of BobThrough a mutual connection, I met a person.

Your monthly expenses on the jeep vs repairs, upkeep and unforeseen maintenance on the Accord.

Having done property management and short-term rentals for as long as I have, there is wisdom in allowing for unforeseen circumstances, and allowing a buffer of time for one to act on it.

I know much of the profit is going to depend on 1.) buying price, 2.) getting ALL the work done at or under budget and on time or before (whether foreseen or unforeseen), 3.) holding costs (homeowners insurance, interest on loans, property taxes) and 4.) selling it for the ARV I estimated, or as close as possible.

Ralph and I negotiate the final sale price and split unforeseen overruns as in the first scenario.