I recently acquired a short term rental in Big Bear, CA with a partner that closed in January and am now just starting to discuss this topic outside of my partner and circle since I don’t know where else to go.When we ran numbers, call it rookie mistakes or unexpected events, but we got hit with a blizzard our first month and a half of knowing and the bottom floor got hit with a leak.

There is currently construction going on for an outlet mall in Antioch,Tn. 

Wanted to put about $60,000 into it but went over budget about $12,000K with unexpected expenses.  

To do that, we start with the ARV (As Repaired Value) and then subtract our expected profit, rehab budget, sales and closing costs, carrying costs (time value of money/interest, etc), and we build in a 5% to 10% "Contingency Reserve" to account for any unexpected items that pop up.

Plan for maintenance and cleaning: Consider hiring a cleaning service and a handyman or contractor to handle any repairs or upgrades.Lastly, be prepared for the unexpected: There are risks involved in short-term rentals.

I left out the part that my dad has been helping out with some of the finances so I use him as our "savings" for anything that comes up unexpectedly.  

Unexpected expenses can pop up, especially during the first year, and it's important not to let them derail your plans.  

It's also important to consider the potential risks and challenges of real estate investing, such as vacancies, unexpected repairs, and changes in the local housing market.

Did something happen to the foundation drains (their outlet got buried)?

Maybe this will be helpful to another newbie :) Tools to have – Tape Measure, flashlight, electrical outlet tester.Things to look for during initial visit -Look under all sinks for leaks.- Look in every corner (ceilings and floors) for any sign of water damage or cracking- Pull out floor vents if you want to see what kind of floors are under the carpets.- Look in the crawl space and attic if you can (always have a pocket flashlight on you)- Roof-Chimney- Gutters/Soffits/Downs- Paint/Siding- Electric Service Drop (older homes with above ground wires)- Electrical Breaker Box- Exterior Doors/Jams- Porch/Deck- Termite Danger (ground is near wood)- Land Grading (for water runoff)- Cement/Asphalt-Retaining Walls-Garage (Door and function)- Landscaping-Trash Cleanup- Windows-Interior Doors-Strip Wallpaper-Drywall-Patch & Paint- Flooring (carpet, vinyl, hardwood, tile)- Ceiling Repairs-Water Damage-Trash Removal- Kitchen- Kitchen Appliances- Baths- Water Heater- Water Service Line- Water Plumbing-Waste Plumbing-Check water pressure -Electrical- Joists- FoundationTips - Check the property at different times of the dayThe street may be peaceful and quiet in the morning but in the evening, it may overflow with traffic.