I would tell them your concern about vacating and you having to eat the costs of an unexpected turn over and that you would like to help them with their new exciting addition to the family as much as possible.

Does anyone have a "standard percentage or rule" they use for setting aside cash for the unexpected during a flip? 

Can you imagine getting an unexpected hit of $108,000?!  

This has been very helpful and delightful to read. 

Obviously the income stream would be split 5 ways, but so too would any maintenance costs, thereby reducing the overall risk of not being able to meet any unexpected bills. 

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.

As always try to have a little reserves for unexpected fixes .

Of course tenants can lose their job and unexpected life events happen even we we did our job right.Property management fees vary from low flat fee to 10%.  

I'll have to check when the existing homes were built and see if that correlates to the crash.It is possible, though, based on the sub-division where Iive, the geology may have been unexpected.

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.