Also you take an upfront payment for the option, which gives you the cushion if the lease doesn't work out. 

Fixed bid contractors mark up their hourly workers cost and add around 30% for their time and they have to add cushion so it can easily cost double/triple or more if you have a greedy contractor...

I think we are all familiar with the rental costs down here, so as I'm not in a full time job I'm trying to find the right time to get into a small multi-unit place that I can use to at least cushion my housing expenses.

This not only satisfies the bank's underwriting requirements when you go to purchase or refinance a property, but provides that cash cushion when bad things happen like the HVAC goes out or a tenant stops paying rent and you have to take him to court.

Risk is 2008 crash means more renter buyers trade down good for us demand and we sell house 10% above zestimate so big cushion.

I have a 4.0 as of right now and I am not planning on losing it.I would like to learn the ropes of RE and REI, and become proficient at them, so as to provide cushion and a great early retirement.

i have experience in rehab and construction and i own several units that i self manage. i also have full time job where i do shift work 12 hours a day on a texas swing shift schedule. i can work as many hours as i want basically. but it takes toll on my body. i make a living doing what I'm doing and i have insurance and the 401(k)( not much but something). i want to save enough cash as a cushion and quit my job and work with him. the cushion number is debt free except house and rentals. it will take about 6 months. there is no rush. what are some things i should be thinking about and set in place before i quit my job?

Banks know that, among other things, hotels can have very lumpy earnings and want to leave themselves plenty of cushion.

I have no mortgage and enough of a cushion. 

Is there enough cushion with your purchase price and estimated repairs to allow for unknown issues and still get in under that price point.