Some people lowball on purpose to make it up later on “unforeseen overages”.

I would like to know what are main safe guards which 50/50 LLC partnerships typically put into place.Lets say all goes well and then an unforeseen event occurs to one partner...1.

The property numbers are as follows:Rent $1050 a monthMortgage payment $395 (5% on 60k, 20 year)Taxes $75Insurance $75Property management $0 (self manage)Repairs/vacancy/turnover/Cap Ex reserves $150Monthly cash flow $355Property account balance $0Now let’s see how it would work if I were leveraged at 75% and kept the other 25% in an account for reserves.Rent $1050 a monthMortgage payment $594 (5% on 60k, 20 year)Taxes $75Insurance $75Property management $0 (self manage)Repairs/vacancy/turnover/Cap Ex reserves $150Monthly cash flow $156Property account balance 30kI would much rather be 75% leveraged, make only $156 a month in cash flow, and have an additional 30k in the account for emergencies and unforeseen events, such as a Coronavirus apocalypse, than be leveraged at 50%, make $355 a month in cash flow, and not have the extra 30k in the account.

Reserves are also needed for any unforeseen capital improvements.  

In today's market they require full documentation and you must meet a defined set of requirements (one of them being that you must have sufficient cash available for the unforeseen), but if you are able to qualify and can find a good property I don't see why you shouldn't take advantage of it.

As it pertains to renovations on the second property, the plan is to make all the repairs and renovations up front and keep my fingers crossed that nothing unforeseen occurs. 

It's leaving room for unforeseen expenses & profit.

Investing in real estate is a big decision, and it's understandable to have reservations, especially when unforeseen complications arise.Property Tax Exemption: Unfortunately, many jurisdictions do have the stipulation that property tax exemptions, especially ones for veterans, only apply to primary residences.

Ensuring your projects finish on time:The two main problems with rehabs are unforeseen costs, and going over time.

Suppose we then reach an agreement and accept an offer, then I discover unforeseen issues during the inspection.I know I can back out of the deal (at the expense of my earnest money) if I added an inspection clause to the offer, but is it acceptable to stay in the deal and reduce my offer at that stage, even though we've already reached an agreement?