I always budget 15% for overages, unforeseen upgrades, and punch list items.

That is when you will either embrace non-traditional lenders, hard money or private money; or you will need to learn creative finance. 

These items are going to have the biggest impact on your returns.

You can always work out a deal with your broker too change that, in which you would need the above items.  

If I had them managed, that would easily add 10-15% to the expenses.I think if you actually itemize all of your costs, you will quickly find that a $250k duplex with rents only $2k a month to be a marginal deal, and a bad deal when you try and finance 100% of the deal.  

I am cash flowing $650/month after all expenses and reserves.I'm also rehabbing another nearby property that I will either rent traditionally, or to students.

I also know that management fee and salaried employees are separate line items.

If not just request line item pricing and also what is being done in house vs. outsourced.

@Brianne H.When you’re doing a BRRRR most of the time your eventual ARV cash out number is not going to be 1% of rents like a traditional 1% rule cash flow buy.

Hi- can someone speak to requirements by city to do either short term or traditional rentals?