I've considered all costs except I'm not sure I understand, "contingencies for cost overruns".

Their inspection contingency is still valid a week from closing?

If it was on MLS, make sure you maintain your finance contingency (which basically maintains the appraisal contingency).  

I would add at least a 10% contingency to all repair costs for unseen conditions.  

Actual approach is very much contingent on the issue and the timing on the project.  

Some may disagree that investors should be contingency free, but having a thorough inspection will at least give you peace of mind that the property is in good working order.Good luck!

Here are the variables you'll need:ARV (After Repair Value)Estimated Repairs (add a 10% contingency)Estimated RentPurchase PriceEstimated PITI (Principal, Interest, Taxes, and Insurance) on the refinance sideIf you know these values and ensure that your all-in cost (purchase price plus repairs) is 75% or less of the ARV, and that your rent will cover PITI + vacancy + maintenance + property management, then it's a deal worth pursuing.The BRRRR model is a fantastic way to build a portfolio and is still very feasible—even in 2024.If you're interested in more info, feel free to shoot me a DM—we can connect, and I'd be happy to assist you.

I try and recommend to all my clients if they are looking at investing in an area with a POS to just look elsewhere like on the west side in areas with no POS or make the offer contingent upon a satisfactory review of the POS report prior to closing. 

I recommend setting aside a contingency fund of at least 10-15% of your total budget to handle surprises without derailing your project.Juggling multiple contractors and staying on schedule is tougher than it seems.

However, consider:Higher debt and monthly paymentsIncreased personal financial riskPotential need for personal guaranteesAdditional Advice:Conduct thorough due diligence on the property and local marketHave contingency plans for various scenarios (e.g., lower Airbnb income, longer renovation time)Consider professional property management to reduce your workloadEnsure you're compliant with all local laws and regulationsFactor in potential capital gains taxes or other tax implicationsRemember, while the potential returns look attractive, real estate investments always carry risks.