I'm taking a more conservative approach for now as I'm inexperienced and need to be prepared for any unexpected costs, Thank you Nathan:).

Risk Management: Securing enough funding to cover unexpected expenses during the renovation is a challenge.

If you have $25,000 saved up, I would keep at least $5,000 of it as a reserve to handle unexpected expenses.

I'd say 90k for purchase, 20k for rehab, 10k for closing costs, commissions, fees, other mystery and unexpected fees and things that come up.

What's something that happened which was unexpected or you didn't anticipate (good or bad)?

However, navigating the legal and financial complexities of Subto deals requires careful attention, so I’d recommend working with a real estate attorney to ensure everything is structured correctly.Securing private money for the closing is a smart move, but ensure your terms allow for flexibility in case of unexpected repairs or delays in cash flow.

Establish a solid reserve fund (3-6 months of rent) to cover unexpected expenses or vacancies, which are inevitable over time.Make sure you're well-versed in local landlord-tenant laws to avoid legal complications.

Did you run into any unexpected challenges with the layout or structural elements?

Our city is experiencing rapid growth and presenting excellent opportunities for investors.I would be delighted to connect and share insights about our current market and turnkey properties.

However, always budget for unexpected issues, especially when adding square footage.Seller financing could indeed allow you to offer more, but you're right to be concerned about funding the rehab.