@Alex Sarnoff, I will add to others, that there is a lot that should be covered in the hypothetical and legal world of NNN (even if they are absolute) but in the real world doesn't work.Whether is be national tenants with NNN carveouts and caps or local tenants who simply can't afford any unforeseen increases to their NNNs, you will always run into something.  

Hi John - We do have one property that will not be profitable or just about break even in 2024 due to all the unforeseen maintenance items:  pool heater, roof, pool fence, handy man over a dozen times, remodeling took 3 months instead of 3 weeks, etc. 

There’s always gonna be hiccups, time delays, over budgets for unforeseen things that’s part of the business. execute, adjust, pivot learn and keep going! 

The builder's PSA is going to have clauses protecting them in the event of unforeseen delays, but if the delays are bad enough, they might be willing to compensate a buyer on a case-by-case basis.

This may drive your premiums down enough to keep insurance in place just in case something unforeseen happens. 

I've had very similar types of projects that took vastly different effort due to neighborhood opposition, or unforeseen City requests. 

Emergency Fund (5-10% of Income)Rule of Thumb: Set aside 5-10% of your income for an emergency fund.Why: This fund should cover unforeseen expenses like major repairs or vacancies.

The real test comes when the unexpected happens: market shifts, economic downturns, or unforeseen challenges.

It is quite an undertaking, processes will be long and unforeseen costs could pop up.

A solid financial foundation indicates that the sponsor can handle unforeseen challenges and continue operations smoothly.Track Record EvaluationAnalyze the sponsor's historical performance on similar projects, including timelines, budget adherence, and overall project success.