As a lender I have had no issue honoring this exception but I have been very surprised to find that a lot of lenders will not. 

I thought it would be best to keep the owners current expenses as part of the analysis so not to run into any surprises. 

Police and neighbors were equally surprised – break-ins were unheard of in the neighborhood.

Good part is we found 2 old hand made nails:)  Surprisingly the house does not have termites now, this damage was from long, long ago.  

I account 10% of rehab estimate for surprises.

This leaves me with $200,000 of cash cushion in the case of unexpected expenses, vacancies, etc and allows me to reassess after my initial acquisition period is over.My first question is does this distribution of money make sense? 

Depending on the deal, I'd start with local banks/credit unions and see if they are being creative--you might be surprised how flexible some are!

I was surprised to see @Greg Dickerson, state: "You could easily double that in a year with doing flips and small infill development projects."

Have your agent ask the seller to double and triple check that.... you might all be in for a surprise. 

It could be done at any time fairly easily and I wouldn't be surprised if they still do it.As others suggested, prepare an updated account summary.