If you are using hard money you need to budget for the points and fees as well as traditional third party closing fees.Repairs: The money it is going to take you to rehab the property plus an extra 10% of estimated repair costs to account for unexpected repairs.Holdings Costs: Here is where a lot of investors get tripped up.

If you get a laundry list of problems on the inspection report, don't be surprised or let that alone scare you.  

(I'm surprised the banks even go for it, frankly, as it is like a seller-carry 2nd for 8% interest-only...equivalent to a "no money down" deal. 

Add in a big buffer as there are always surprises.

@Jon Graham Wow I'm surprised at some of the comments here.

As with every real estate investment, do your due diligence and plan for the unexpected.

Personally, I was surprised by her reaction, I was expecting a counteroffer.. but.. nothing yet. 

. :)in addition, our houses are in 5 miles radius and i can get to any of them within 20 mins with traffic..you really have to have systems (help) if you are going to take a long vacation. you have to have google voice, an assistant if they have to show the place, a crew/handyman that can access the keys from a lock box and STILL.... it's stressful because it's your property and those people can "flake out" at any point.but you have to train them and you do it by saying "i am going for 3 weeks, you are dealing with everything"... they might surprise you!!

thanks everyone I think I might have to do the cash for keys but now I have to figure out a date to do it and the place is well maintained (surprisingly).

You can get away with a surprising amount of deferred maintenance...