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.

So if the property is $250,000 and it needs $50,000 worth of work, you would need $10,500 as your down payment (technically $10,675 as there would be "contingency reserves" baked into the renovation budget). 

When we were purchasing properties, we always made our offers all cash, no inspection, no contingencies and closed on every accepted offer.

I agree that it is good to have a contingency plan, but my thought on that is that we should be hiring a Real Estate Attorney to function in that capacity.

I called the insurance company, they looked up their file, advised me the attorney called 3 times and sent 3 demand letters, and usually does no more, as they work on a contingency basis.

The renovation costs may include a contingency reserve and renovation-related costs.Contingency Reserves:Contingency reserves 10 % required for any unforeseen cost overruns that may occur during construction.Unused contingency reserves that were financed into the loan will be applied to the principal balance of the loan.

I have been trying to get into WholeSaling real estate to extent from the other real estate investing I do. I have bought a few books and none of them work well at all because they are all talking about finding the bu...

That doesn't give us many options for negotiating contingencies such as repair requests etc.

Place the relinquished property on the market for sale.Relinquished property goes under contract.Identify replacement property(ies).Relinquished property contingencies end.Place replacement property(s) under contract.Relinquished property closes.

Properties in West Hartford, Avon, Simsbury, Farmington and to some extend Bloomfield are going for $100,000 + over asking price with 5 -10 offers within 24 hours of an open house with all offers having NO contingencies, no inspections, and the majority all cash so no financing.