The good news is that now you can exclude capital gains on your NJ house due to the "unforeseen circumstances" exception. 

Then enough reserves for overages, unforeseen expenses, and monthly interest payments so another 10-15% in total costs in liquid reserves. 

I want to make sure that I am adequately protected against potential liabilities and unforeseen events, so any guidance from experienced landlords would be greatly appreciated.

The last thing you want to do is push something in and get it declined due to an unforeseen guideline.

If you sell because of health, work, job, or unforeseen circumstance you can get the section 121 even if you sell before 2 years.

@Adria T. the PM company has to communicate, get a tenant in quickly and be able to handle items that are unforeseen..

Issues like contractor delays, supply shortages, or unforeseen repairs can extend your timeline, which adds to your holding costs (mortgage, utilities, etc.).Tip: Factor in extra time for delays and have a backup plan to stay on track.Over-Renovating: Many new investors fall into the trap of over-improving a property, especially when they try to bring in their own taste.

But the best ways to get started are, in my opinion: 1) save up enough for a 10-20% down payment and then save a lot more on top of that for reserves, overages, and any unforeseen repairs.    2) have your financial house in order and have credit above 700 to get more favorable rate and terms from lenders.   3) speak to a loan officer that is experienced with fix and flips and get the necessary documents together for a pre approval (typically not much required, usually a valid ID, LLC docs if any, and two months of bank statements showing funds for down payment and reserves). 

The renovation costs may include a contingency reserve and renovation-related costs.Contingency Reserves:Contingency reserves 10 % required for any unforeseen cost overruns that may occur during construction.Unused contingency reserves that were financed into the loan will be applied to the principal balance of the loan.

Ran into some unforeseen issues which I am realizing is the realest ate make or break.