I recently acquired a short term rental in Big Bear, CA with a partner that closed in January and am now just starting to discuss this topic outside of my partner and circle since I don’t know where else to go.When we ran numbers, call it rookie mistakes or unexpected events, but we got hit with a blizzard our first month and a half of knowing and the bottom floor got hit with a leak.

Wanted to put about $60,000 into it but went over budget about $12,000K with unexpected expenses.  

It could be a coincidence but it seems too perfect to say the algorithm did this by accident. 

On a personal auto policy there are two ways the Liability can be written:1. separate limit for Bodily Injury and for Property Damage2. one limit for the combined Bodily Injury and property damageThe lowest required limit for your auto policy is likely to be, for a personal umbrella is $100,000 per person/$300,000 per accident for Bodily Injury and $100,000 for property damage. 

To do that, we start with the ARV (As Repaired Value) and then subtract our expected profit, rehab budget, sales and closing costs, carrying costs (time value of money/interest, etc), and we build in a 5% to 10% "Contingency Reserve" to account for any unexpected items that pop up.

Plan for maintenance and cleaning: Consider hiring a cleaning service and a handyman or contractor to handle any repairs or upgrades.Lastly, be prepared for the unexpected: There are risks involved in short-term rentals.

I left out the part that my dad has been helping out with some of the finances so I use him as our "savings" for anything that comes up unexpectedly.  

Unexpected expenses can pop up, especially during the first year, and it's important not to let them derail your plans.  

I found out about bigger pockets through a wholesaler who called me on accident and we got into talking business.

An example of this would be a car accident that you caused.