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.

They will get a $100,000 liability to cover fires, water damage, accidents, and more.As @Greg Scott stated, you should require your tenant to add you as "additional insured" on their policy.

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

(Sometime a larger one sneaks in by accident.

If they put a hole in a wall fix it as face as possible and let them know it's not okay, but accidents do happen.

All it takes is one slip and fall or other accident and you'd be toast.

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?