If I build a cushion into my offers, what does it matter if the markets at the top?

I have a few thoughts, since I was mentioned in a reply, yes you ALWAYS run into things that take you over the original budget, I mean I suppose theoretically you could put a budget together where you totally overcompensate in each line item, so as to build yourself an inevitable cushion, but its easier to just put in a "misc" or "contingency" or whatever you want to call it and hope you don't use it all up.

There's a lot of cushion in our budget so if we need to sell in the high 600's, we should still clear a sizable profit.

I was just concerned about turning my one eviction into a double if I get forced to keep them after the first hearing, which would leave me without the cushion that I feel safe with.

I had a landscape company I sold in June and have some money put away for down payment and a safety cushion.

Assuming 8% closing costs on the $295K, that is $24K......so $71K cushion to fund the repairs, carrying costs, and profit. 

@Ryan Billingsley I know quite a few people who got started while working full-time, and after getting a few deals under their belts either cut their hours or got a different job that allowed more time for investing while still having that cushion of some regular income.

It isn't - it's worth disclosing and worth discussion.Clearly, if rents did go down, you would have less cushion on the downside with a property that had more leverage, because your net profit margin % would be lower w/ more leverage and higher with less leverage. i.e.

In addition, it would give me a cushion.

The investor is into the property about $260K and is in need of selling the property @ $300K… Of course, assuming the cushion is to cover closing costs and Realtor commissions (once listed).