Near Miss

I'll never forget the project that taught me a valuable lesson about underestimmating rehab scope. Purchase price was $120k, with an estimated $30k rehab. However, unforeseen structural issues arose, ballooning costs to $50k. Luckily, the ARV was $200k, and we stlil netted $20k. Holding costs and unexpected expenses can quickly erode profts. Now, I factor in a 20% contingency fund for all my BRRRR method investments, and advise fellow investors to do the same. Thorough property analysis is key to avoiding costly surprises.