Sometimes it takes just asking the tax office what their rates are and adding an extra 1-3% on top to give your self some cushion. 

I learned to account for the unexpected for my next deals and leave a cushion for the unknown.  

That's binding so she won't be able to reneg.Ill pay 8,000 lease per month plus the 7,000, but will collect 3,600 mortgage payment. (11,400)  Hopefully, I'll be collecting 8000/mo rent within, let's call it 6 mos.I'll have the cushion of the remainder of the 1.2mBbbbut, if I dont make money on money I'm paying 5.75% for (but with closing costs, the real cost of the money is more than that), I lose

The interest rate you are being charged is going to: leave very little cushion in case things go south;will make it harder to refinance as you will have made minimal, if any, dent on principal due to the high interest rate/terms; You didn’t mention the other terms you are getting – loan term, amortization, etc?

It is a bit thicker, is made of denim, and serves as a cushion, sound and moisture barrier.

If the borrower doesn't maintain hazard insurance the house could burn down and you lose a very healthy part of your equity cushion, if not all of it.2.

Having more cushion to mitigate risk is a wise move.

After Repair Value: $210,000Closing Costs at time of purchase: $2802Monthly Holding Costs: $1,128Interest Payments: $328Property Taxes: $620Electricity: $50Water: $30Insurance $100Number of months holding costs: 9Total carrying costs: $11,825Repairs $52,157 + 10% Contingency = $57,372 TASK UNIT Materials Needed Line Item Cost Replace Sheathing Per Sheet 5 $270.00 Asphalt Shingles Per Square 20 $4,400.00 Aluminum Gutter Per LF 150 $675.00 Pressure Wash Per House 1 $150.00 Vinyl Siding Per Square 1 $265.00 Replace Garage Door Per Door 1 $675.00 Replace Door Opener Per Opener 1 $370.00 Roll-Off Dumpster Dumpster 1 $350.00 Full Demo Per SF 2400 $960.00 Service Call Per Hour 8 $680.00 Natural Gas Hot Water Heater - 50 Gallon Per House 1 $710.00 Replace All Supply Lines Per Fixture 5 $1,000.00 Install/Replace Tub Per Tub 1 $350.00 Build Tile Shower Per SF 70 $1,365.00 Kitchen Sink Per Sink 1 $120.00 Bathroom Sink Per Sink 3 $210.00 Kitchen Faucet Per Sink 1 $90.00 Bathroom Faucet Per Sink 3 $210.00 Trim Kit Only Per Tub 2 $260.00 Install/Replace Toilet Per Toilet 3 $510.00 Install Dishwasher Per House 1 $430.00 Install Can Light Per Can 10 $650.00 Loose-Fill Insulation Per SF 100 $100.00 Wall Board Per SF 4000 $4,640.00 Exterior Door Per Door 1 $230.00 Interior Door Per Door 10 $750.00 Sliding Glass Door Per Door 1 $450.00 Replace Window Per Window 10 $2,000.00 Repaint Per Floor SF 1500 $3,375.00 Paint New Sheetrock Per Floor SF 1500 $3,900.00 Install Kitchen Cabinets Per linear inch 240 $2,040.00 25" Vanity Per Vanity 1 $150.00 30" Vanity Per Vanity 2 $380.00 Granite Countertops Per SF 50 $1,600.00 Replace Subfloor Per SF 100 $122.00 Install Carpet/Pad Per SY 45 $180.00 Carpet+Pad Material Per SF 400 $700.00 Refinish Hardwood Per SF 1000 $1,250.00 Permits Per House 1 $200.00 Air Quality Test (AQT) Per Test 2 $250.00 Mold Remediation Per House       $10,000.00 Refrigerator Per Appliance 1 $1,100.00 Range Per Appliance 1 $900.00 Dishwasher Per Appliance 1 $700.00 Microwave Per Appliance 1 $440.00 Washer/Dryer Set Per Set 1 $2,000.00 Commission to Realtor at time of Sale 7% - $14,700Interest to Private Lender: $5,000Offer Price: $80,000Potential Profit: $41,101 --> I specifically planned this one higher due to the mold issue and wanting as much cushion as I could have to resolve that correctly.

(I aim for over 20%) Give yourself some good cushion.

Now if I wanted to learn to become a developer and had a piece of land (sunk cost) it could cushion whatever rookie mistakes I would make.