Unexpected expenses are part of real estate investing, especially with renovations.

Quote from @Kar Sun: This isn't right.The tenant should have liability insurance, which protects against accidents like a kitchen fire, a slip-and-fall, etc.

Your clients should focus on properties with significant equity potential and work with experienced contractors to stay within budget and timeline—especially with borrowed funds on the line.Avoiding Bad Deals - Encourage them to work with experienced agents, contractors, or mentors and always run multiple scenarios, including worst-case outcomes, to stress-test their numbers.Reserves - Advise your clients to keep a reserve fund separate from their loan for emergencies, unexpected expenses, or delays.

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.

This might be typical in your market, but it’s worth confirming to avoid unexpected costs.

A quote with no cost breakdown can definitely be a red flag—it makes it harder to understand what you’re paying for and leaves room for unexpected costs to pop up.

Hi Landon, A common mistake to avoid is underestimating costs or timelines—always budget for unexpected expenses.

I’d love to hear your experiences, especially if there were unexpected benefits or challenges.Looking forward to your insights! 

No room for the unexpected. 

More than likely, you’re going to encounter some kind of problem or unexpected circumstance at some point.