Hidden Expenses

Just closed on a small multifamily aparrtment complex and I'm still reeling from an unexpected expense that threw a wrench in our value-add plan. We purchased the property with an in-place cap rate of 6.5%, expecting to increase it to 8% through renovations and rent hikes. However, during the inspection, we discovered asbestos in the ceiings, which added a whopping $50,000 to our renovation budget. This surprise expense has forced us to reevaluate our pro-forma rents and adjust our strategy to ensure we still meet our target profit margin. The original plan was to raise rents by 15% within the first year, but now we're considering a more modest 10% increaase to account for the additional upfront costs. Anyone else have experience with surprise expenses derailing their value-add plans? How did you adapt and still manage to come out on top?