Failing to budget correctly for repairs or not accounting for unexpected expenses can cause you to go over budget.

Maybe, maybe notYou have to weight the pros / cons along with the risks.Your BP mentions you are 'new to real estate'.You are getting into a new asset class along with a business(I consider a STR more of a business than an investment).How much will you save in taxes?

I don't want to lose trust or fail to help my future mentor.

I'm currently in the process of closing my first primary residence deal in NYC, and I would like to ask for a piece of advice to the community.The current tenant of the Seller failed to move out by the closing date and the Seller decided to take a legal vacating process.Background- The current tenant of the Seller failed to move out by the closing date and I heard the tenant is avoiding direct communications with the Seller- Not sure from my end if the tenant is willing to moving out but struggling, or maliciously squatting- I have a vacancy contingency in the contract, thus I can back out at my discretion due to this issue, but currently there is no other properties that I want to move on to due to the market condition- The Seller is trying to take a legal action but it will at least take 3 months or longer, no promise to succeedAdvice to ask- My attorney could not negotiate to ask for a penalty for this delay because the penalty for delay was not included in the contract.

Much of this climate paranoia is usally driven by false ...or more accurately -  'incompletely (or incorrectly) analyzed' data.For example, I see that you list Arizona as a State that is 'in danger' because of dwindling water supplies....yet you fail to manetion that they get much less of their % water from the Colorado, instead having rivers and underground sources to rely upon.

again this is my perspective I was the largest HML in Jackson market from 03 to 08  and lived there for one year cleaning up all the foreclosures I had from failed landlords in 09  I lived out at Reunion which is great neighborhood but you not allowed to rent homes there..

@Ashish Acharya, @Nicholas Aiola, @Dave Foster, @David Orr, @Jason Watson, @Natalie Kolodij, @Bernard ReiszFriends, based on my prior failed attempts to address this issue offline, nobody really wanted to hold this hot potato in their hands.

If he failed to do so, he breached the agreement, and as a result, his IRA was closed.

So the weight of selection really comes down to you, what you most want to do, strive towards etc.. 

If they fail to pay this option, then the option will be removed and they will remain as simple tenants.