I use a desired ROI of 15% with a mimim of 15K profit.The rehab contingency depends on the level of risk in the construction project and your personal knowledge and ability to mitigate that risk.  

Now my model's not for everyone but I'll tell you this - I work in the 2nd space because of the higher yield and to mitigate my risk, not to lose money haha.

And start working your way out of debt, especially student loan, you don't want to be 35 with those sitting around and building some cash reserves to mitigate some of the risk.

Switching into multi family mitigates alot of problems that SFR have.

., and a Real Estate Investment Brokerage in case you ever decide to sell.By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.

I see a lot of people investing outside their area, and I can imagine the nightmare scenarios that can come up when doing that, and I'm just trying to figure out how more experienced investors mitigate some of the risks and maximize their rewards.

I'm just not that sure at the moment so I'm trying to mitigate my risk going into the deal.

At the end of the day you are the one risking everything $40k+ so you have to do everything you can to mitigate that risk.

., and a Real Estate Investment Brokerage in case you ever decide to sell.By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.

What additional costs are there that mitigate that return?