But during the buyer’s due diligence, several unexpected issues surfaced, each cutting deeper into the profit I had worked years to earn.The first issue was with the water lines.

It feels like there’s always a surprise—whether it’s skyrocketing material prices or finding something unexpected during the demo—that eats into the budget and profits.I know there’s always more to learn, so I’m curious—how do you approach rehab budgeting?

How do you handle challenges in a deal (unexpected costs, market shifts, etc.)?

Aside from downpayment, you want to have a solid emergency fund in place, something that can cover unexpected repairs, vacancies, or any other random costs that pop up.I’d also recommend saving more than you think you'll need and keeping a close eye on your expenses.

Everytime i engage in a product its more unexpected money being required and I just do not like that.Good information.

This gave us peace of mind and ensured that any unexpected incidents wouldn't result in major financial setbacks.These two choices have played a crucial role in optimizing our STR strategy, balancing profitability and protection.

Expect delays and unexpected expenses: No matter how straightforward the project seems, having a contingency fund for emergencies is essential.Your Team matters.

Budge for unexpected repairs.

I would recommend planning for some unexpected costs on an extensive rehab like this, especially if the current tenant didn't treat the house well.

It’s also helpful to build a small network of trusted vendors and tradespeople you can rely on for future projects.The BRRRR strategy can be a great way to scale, but I’d advise budgeting some extra cushion for unexpected costs or delays—it’s almost inevitable.