I can tell you we spent all of last years earnings rehabbing properties this year, so if you're trying to replace your income make sure you're making a significant amount more than what your actual income is to offset unexpected expenses like a flood, or vacancies for extended periods of time.

$130,000 for an accident is a pretty solid "accident" to say the least

This caused an unexpected cost of ~ $12k.

Dealing with contractors and unexpected expenses can be a pain.

In recent years, the multifamily real estate sector has experienced unexpected turbulence, catching many investors off guard.

It has been performing very smoothly, zero unexpected expenses + having the rent steadily in my account every month.

Do you have anyone you use for repairs, this will be a consideration done the road.Second, you will want to factor in reserves for the unexpected. 

Dealing with unexpected issues like this can be stressful and disappointing… However I do not feel you did yourself or the property honor by allowing this information to scare you into feeling the property was worthless, or that as you relayed the mold could “ruin a foundation”… (foundations are ruined by much more signifiant factors and not that of mold) I feel you were intimidated here, my friend.

One way to try to minimize this is to eventually ladder your capital into several deals so that when payoffs come, sometimes unexpectedly, not all your capital is idle.

Hi,I have a wonderful tenant who unexpectedly became very ill and now finds herself having a hard time paying rent.