It's also important to consider the potential risks and challenges of real estate investing, such as vacancies, unexpected repairs, and changes in the local housing market.

Kind of by accident.

We and the investors we lend to also usually build in a "Contingency Reserve" of 5% to 10% of the construction budget for "unexpected".

Also, make sure that you have a solid cash reserve for furnishings, seasonality, and unexpected maintenance.

I'm using it to cover unexpected issues and expenses.

I see it as continually learning as I'm problem-solving for clients, as unexpected issues pop up frequently no matter how diligent you are.  

If you do not have the time, patience, knowledge or inclination to get your hands dirty in real estate, but still want real estate returns, buy a publicly traded REIT and avoid unexpected repair bills, non-paying tenants, slow-paying tenants, evictions, and insane drama from time to time.  

There are a lot of things that can go wrong in an investing business, most of them unexpected.

I think if Covid has taught us anything... it's that the unexpected can (and will eventually) happen.

It seems as though you are light on reserves and that can put an investor in a tough spot when it comes to unexpected things that come up and/or puts a lot of pressure on filling a vacancy, etc.