We got the first one by accident, forgetting to filter land out of our SFR data.

Usually I feel I have enough margin to handle anything unexpected.  

It's better to take the chance on that than to take on a big renovation with a $60,000 profit margin and next thing you know you are significantly over budget and you have unexpected costs that eliminate the profit anyway.

Real estate is not a passive investment and you might be required to make unexpected repairs or other work to the property.

If the property doesn't perform as well as you hoped or if something unexpected happens, you could find yourself in a difficult financial situation.

These guys are worried about fires, about avoidable accidents, about loss of life and property, about stopping arrogant, greedy little fools who make irresponsible decisions and endanger their communities in order to enrich themselves unreasonably.

But I feel as though part of the investor's journey is being able to effectively respond to the unexpected and find creative or alternative ways to close the transaction and still create value for everyone involved.A good friend of mine who is also an investor has a saying that goes something like this, "Finding a deal is a lot like getting the football.

I will add a 1-month pad to cover unexpected delays.Next, collect the costs and hold times.If the probable sale price after renovation is $200,000 and the costs, not including carrying costs, are $94,000, I will assume that the maximum purchase price must be less than $100,000 for estimating carrying costs.Carrying CostMany flip properties are not financeable so I will assume the property was purchased with cash so there is no monthly debt service.

The Contractor who got in the accident actually drove his car to the site to check on it.Had some Rip Rap 6 to 18 inch rock brought in.

No one likes unexpected surprises like this.