The extra funds go as surplus to other lien holders or to the previous owner. 

He was the handyman I refer to in this blog: I Burned My House To The Ground.

Any "extra" at the end of the month went towards paying off my credit card (stopped using my cc a couple months ago to keep it from getting any higher), so my checking account pretty much stayed roughly around the same amount for years now (a laughable amount under 10K).

But you'd better have a killer good deal to cover all the extra costs.

This posed several new challenges that not only added costs but in the end burned out good crews fed up with foreclosure grade work. 

There are many people who miss out on a LOT of deals because of the bridges they have burned.

So, 3 bookings a month would be an extra $450 to $510 in your expense lineMy advice would be to get actual numbers for whatever property you are looking at and then run the numbers again.

Keep an extra box of tiles in case one cracks or is chipped.

Thanks for putting extra eyes on this!

(hint, it's all about future values, both rent wise and appreciation wise.)That's why the market is so competitive in LA for 2-4's...The future value of a property or rent will not rescue you from a foreclosure if the present rental income is insufficient to cover the present mortgage and expenses and you do not have sufficient extra funds to cater to the deficiency.