They may look promising on paper but often underperform in reality due to management challenges and unexpected expenses.Given your situation, a SFH in a good area of South Jersey could be a solid starting point.

And fined retroactivally.Additionally, if a tenant has an accident (slips/ falls/etc), or something goes hugely wrong with the dwelling (fire/electrical/etc), your insurance WILL NOT COVER the claim.

How do you typically handle unexpected costs or delays in your real estate projects?

Your emergency fund is a great cushion, but be ready for unexpected expenses.

By investing, you can create multiple income streams that not only cover unexpected expenses but also give you a sense of control and empowerment over your financial situation.

For the most part, if your running real estate somewhate properly, the risk isnt your property causing you to get sued....Think of it as you are hopefully protecting you property from yourself in the event a motorist sues you over a car accident, you dont want them getting access to your real estate assets. 

There are also numerous other factors that contribute to the equation as well, such as the market you're interested in or even unexpected malfunctions that you will need to be prepared for financially. 5k is a great start though.

I know some people that have property free and clear don't care if they lose it and only carry liabliity insurance to protect against accidents on the property, medical or legal bills, etc.Do I have no other recourse but to carry full coverage?

While the project was successful, navigating unexpected costs required flexibility and careful oversight.

In addition, some reserves should be available to handle any large unexpected issues that crop up before money accumulates to pay for it.