It's definitely a team effort and we're grateful to have a solid team.Here's what happened near closing - Our bridge lender wanted to change the loan amount 2 days prior to closing (reducing it by $325K) which would require raising the additional amount and diluting existing investor equity - fortunately we were able to sell them on why this would create too much of a risk for us and them.Interest Rate Cap Insurance - came in at $60K vs $20K because of interest rate environment & bond market volatility within the last month On our first acquisition we also had some surprises at closing - Insurance came in 3X the budget - for both our underwriting and the lender's (this is more of an issue specific to Texas)Lender required $100K more of CapEx expenses the week of closingAdditional unexpected insurance challenge - the corner of one of the buildings was incorrectly designated as being in a flood plain. 

@Daniel NishiguchiIt should be stated in your lease anyways that the tenant is liable for all people / guests they have in the unit for accidents damages etc .. you can’t take a persons second amendment rights away because your scared of guns bro

Do find out about fire suppression though, that could be an unexpected $250k on a $300k building.

For example, my lease states that if the  “Premises are totally or partially damaged or destroyed by fire, earthquake,accident or other casualty that render Premises totally or partially uninhabitable, either Landlord or Tenant may terminate this Agreement by giving the other written notice.”

This was unexpected.

If you are willing to take the risk of no inspection and the reward for waiving is a satisfactorily-reduced price, and you have the funds to pay for an unexpected repair, then go for it. 

Accidents happen and there isn't necessarily a boogieman. 

Another--dad gets in an accident and is sued. 

The emergency reserve, typically calculated as a number of months of PITI, is there to cover unexpected financial shortfalls or urgent repairs.

THAT and when we finished everything we had unexpected urgent medical expenses that we needed to use some of the HELOC for.