Someone suggested holding funds in escrow account after COE to be paid directly to a contractor for the repair... hopefully that would not violate and lender terms... and would free us of any liability if there are additional unforeseen costs.

Unforeseen tax issues because its a primary residence (though I think it really helps me more than hurts). unexpected reasons I would have to be out of the house for extended periods of time.I am specifically looking for a house that needs works, because, in my area these are very undervalued from what I have seen.

For me, the largest risk I foresee is job relocation.Thanks,Kelvin If it's legitimately unforeseen, and out of control, you will be fine.People who get jammed up are those that intentionally engineer reasons why they "can't" move in.

You'll have unforeseen issues, inspectors don't like chard framing, the smell never goes away if you leave chard materials, it takes years to get rid of.

Flips require significant cash reserves as a safety net against unforeseen expenses.

If you have reasonable working capital (liquid asset such as cash on hand and semi-liquid assets you can quickly turn to cash without loss for slow periods and unforeseen situations), then it factors in into how much you can leverage. 

Just run all your own number and be have handed to account for extra unforeseen problems.

Balance after 6 months = 446,410.97. about 10,000 in interest paymentsNet profit before taxes would've been 173,710 barring any unforeseen expense or the timeline changing and we sold at that price. 

As far as cash reserves, I would have a line of credit for unforeseen repairs if needed

This usually leads to unforeseen consequences with devastating effects.With your ARM you need to know when the note is coming due, the total maximum the rate can climb ever, and the annual ceiling meaning how much each year regardless of market fluctuations is the rate allowed to increase??