{"id":153718,"date":"2023-06-05T17:03:21","date_gmt":"2023-06-05T23:03:21","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=153718"},"modified":"2024-02-27T10:26:57","modified_gmt":"2024-02-27T17:26:57","slug":"why-you-should-add-a-contingency-to-your-rehab-budget","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/why-you-should-add-a-contingency-to-your-rehab-budget","title":{"rendered":"You&#8217;re Making a Mistake if You Are Not Adding Contingencies to Your Rehab Budgets"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC3498719137\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve been investing in real estate since 2005, and to this day, I have yet to hear any other investor say, write or even hint at anything that resembles the following,<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">\u201cYou know, I have this problem where I\u2019m just budgeting too much for rehabs. I end up borrowing more than I need, and I\u2019m probably missing out on deals because my rehab budgets are too large. I just always seem to come in under budget.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve gotten better and better at hitting budgets since I started, but I still go over more often than I\u2019d like to admit, and very rarely do I come in under. So, from what I\u2019ve experienced (and heard about), mistakes are not made evenly in both directions when it comes to rehab budgets. We are biased heavily toward under-budgeting for rehab expenses.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Indeed, we are biased toward under-budgeting in general.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Rehab Budgets are Generally Too Low<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are a large number of things that often go unaccounted for\u2014particularly by newbies but also by more seasoned investors\u2014when estimating a rehab budget.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">One of the big ones is holding costs. If they are even remembered in the first place, investors often assume that the project will go along speedily and there won\u2019t be any delays. Unfortunately, that is often not the case.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Perhaps the contractor can\u2019t start on time or is slower than expected, or maybe you even need to replace them midway through the job. Or maybe there\u2019s a permit issue, and the city holds up construction. (There is one issue on a duplex that took us nine months to resolve.) Or there are supply chain issues causing back orders on parts. On a small commercial property, we have been waiting for a 1000-amp meter bank for almost a year now due to supply chain issues. This&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/krcgtv.com\/news\/local\/electric-meter-box-shortage-due-to-supply-chain-delays-home-sales\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">has become more common of late<\/span><\/a><span data-preserver-spaces=\"true\">, particularly with electrical equipment.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We\u2019ve also had situations where we have prioritized smaller projects we could finish quicker and left large ones sitting for far longer than originally anticipated. Properties also sometimes take longer to sell or lease than expected. (The multiple offers on day one that flippers got used to in 2021 are no longer here.) Therefore, any investor using financing will have substantially more debt payments. And then there are taxes, insurance, utilities, etc.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The next problem is that we often underestimate the cost by using old numbers. With higher inflation these days, it\u2019s not uncommon for investors to use wildly outdated estimates when putting together an estimate. This has been particularly true for HVAC. For example, as Samantha Lile&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.motili.com\/blog\/hvac-industry-pricing-trends-in-2022\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">notes<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;regarding HVAC last year, \u201cSome [HVAC manufacturers] have announced increases as much as 38%, while it\u2019s not unusual to see increases ranging from 3% to 20% higher than 2020 levels.\u201d&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Next up are the \u201cpunchout\u201d items that are almost always undercounted. This can include things like trim, blinds, screens, outlet covers, light bulbs, doorknobs, closet poles and shelves, cabinet pulls, splash blocks, bark mulch, etc., as well as a deep clean. Throwing $1,000 for all that often seems sufficient, but it usually costs more.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The big ones, however, are unforeseen items. Oftentimes, various parts of a house function when tested but will fail under a load, i.e., with consistent use. We find this often with HVAC and supply lines and, from time to time, with appliances.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Then there are things you cannot see. The sewer line being broken or hopelessly filled with roots and offsets is a common one.&nbsp;<\/span><strong><span data-preserver-spaces=\"true\">Pro tip:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/2015-06-10-5-items-investors-overlook-performing-due-diligence\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Scoping your sewer line<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;during due diligence is highly recommended.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Once you open up a wall, there\u2019s always a potential for problems. There could also be galvanized plumbing or knob and tube wiring in the walls that need replacing. Or there could be termite damage or rot that was missed because it was behind a wall or under a floorboard. You could also find you\u2019re dealing with lath and plaster instead of drywall (common in older homes), and much more time intensive to repair.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Every seasoned investor has stories of rehab budgets that have been wrecked they would be unhappy to tell.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/due-diligence-gone-wrong\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">I wrote an article<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;a while back about a project of ours that went sideways, which is a good illustration of what can be missed for those interested. I missed that the cabinets were garbage, the electrical in the finished basement didn\u2019t work, and I falsely believed the HVAC had life in it, amongst other things. I had budgeted $34,800. The total price came in at $57,498.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And I\u2019ve heard of even worse than that.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Of course, many of these problems can be found beforehand with thorough due diligence. But you must assume that you are likely going to miss something. And there\u2019s also a tradeoff. Due diligence takes time and energy, of which you only have so much. Doing infinite due diligence is not advisable. It should be thorough but within reason.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For more on budgeting rehab expenses, I highly recommend Jason Scott\u2019s book:&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/store.biggerpockets.com\/products\/the-book-on-estimating-rehab-costs\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">The Book on Estimating Rehab Costs<\/span><\/em><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Few Noteworthy Examples of This Phenomenon<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If that wasn\u2019t convincing enough, it might be helpful to zoom out a little and look at some illustrative examples to make this point. There is a litany of historical instances of budgets not simply being exceeded but being completely blown apart. A few include,<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">The famous&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.housedigest.com\/905040\/the-untold-truth-of-the-sydney-opera-house\/#:~:text=Construction%20went%2095%20million%20dollars%20over%20budget&amp;text=According%20to%20Courier%20Mail%2C%20the,was%20actually%20%24102%20million%20AUD.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Sydney Opera House<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;was budgeted to cost $7 million and take a few years to build. It ended up taking 14 years and costing a cool $102 million, just over budget by a barely noticeable 1357%.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.heraldscotland.com\/news\/19958838.building-scottish-parliament-became-grand-designs-nightmare\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Scottish Parliament building<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;was budgeted at \u00a350 million in 1998 before climbing to \u00a3190, then \u00a3260, then \u00a3375, and finally settling in at \u00a3414.4 million in 2007.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The 1963 film&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/screencrush.com\/movies-that-went-way-over-budget\/\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">Cleopatra<\/span><\/em><\/a><span data-preserver-spaces=\"true\">&nbsp;was originally budgeted at $2 million. By the time it was all said and done, the cost came in at $44 million and almost bankrupted 20th Century Fox despite being the highest-grossing picture of that year.<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.firmex.com\/resources\/uncategorized\/how-sochi-2014-became-the-most-expensive-olympics-ever\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The Sochi Olympics<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;were budgeted at $7 billion but came in at $52 billion, although it should probably be noted that a large amount of that cost came in the form of \u201ckickbacks and embezzlements.\u201d<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">In 1966, the House Ways and Means Committee estimated that by 1990,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/reason.com\/1993\/01\/01\/the-medicare-monster\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Medicare<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;would cost $12 billion (adjusted for inflation). Instead, it cost $107 billion.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">The James Webb Space Telescope is an incredible achievement, but as its&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/James_Webb_Space_Telescope\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">Wikipedia<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;entry shows<\/span><\/a><span data-preserver-spaces=\"true\">, in both time and money, it went waaaaaayyyyyy over budget<\/span>.<\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And this goes for just about everything, not just the really big projects. Daniel Kahneman quotes two studies in his great book&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.amazon.com\/Thinking-Fast-Slow-Daniel-Kahneman\/dp\/0374275637\/ref=tmm_hrd_swatch_0?_encoding=UTF8&amp;qid=1685287707&amp;sr=8-1\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">Thinking Fast and Slow<\/span><\/em><\/a><span data-preserver-spaces=\"true\">&nbsp;that are pretty emblematic of this phenomenon,<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">\u201cA 2005 study of rail projects concluded that, on average, planners overestimated the number of people who would use the new rail system by 106% and underestimated the cost to build by 45%.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">\u201c\u2026A survey of American homeowners who had remodeled their kitchens found that the average person expected to pay just over $18,000 but ended up spending over $38,000. (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.amazon.com\/Thinking-Fast-Slow-Daniel-Kahneman\/dp\/0374275637\/ref=tmm_hrd_swatch_0?_encoding=UTF8&amp;qid=1685287707&amp;sr=8-1\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">Thinking Fast and Slow<\/span><\/em><\/a><span data-preserver-spaces=\"true\">)<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Now sure, there are examples of coming in \u201con time and under budget.\u201d (Although not as many as you might think,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.linkedin.com\/pulse\/why-do-construction-projects-frequently-go-over-budget-\/?trk=organization_guest_main-feed-card_feed-article-content\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">one study from KPMG<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;found that only one-third of building contractors\u2019 projects came within 10% of their budget.) But moreover, there are virtually no examples in the opposite direction. For example, here\u2019s what I got when I searched Google for \u201cprojects that came in most&nbsp;<\/span><em><span data-preserver-spaces=\"true\">under<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;budget.\u201d<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"983\" height=\"1000\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-05-at-7.01.38-PM.png\" alt=\"google search for projects under budget\" class=\"wp-image-153720\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-05-at-7.01.38-PM.png 983w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-05-at-7.01.38-PM-295x300.png 295w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-05-at-7.01.38-PM-768x781.png 768w\" sizes=\"auto, (max-width: 983px) 100vw, 983px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Yeah, this is a one-way problem.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Historically, going over budget is a much more common problem than budgeting too much. Indeed, being&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/2015-04-08-curbing-optimistic-bias\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">overly optimistic<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is a historical norm. Many on both sides of World War I thought&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.theworldwar.org\/exhibitions\/over-christmas#:~:text=%E2%80%94%20Excerpt%20from%20the%20diary%20of,of%20the%20Prince%20of%20Peace.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">\u201cthe war would be over by Christmas,\u201d<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and commentator Bill Kristol, like many others, infamously predicted the Iraq War would be just a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.youtube.com\/watch?v=nONm4myKwY8\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">\u201ctwo-month war.\u201d<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Rosy predictions are par for the course. Realism ain\u2019t.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">When it Comes to Real Estate Investing<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are three big tips to make when it comes to real estate investing, but the first is simply to embrace the undeniable reality that there is a systemic bias in favor of&nbsp;<\/span><em><span data-preserver-spaces=\"true\">underestimating<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;rehab budgets. Please accept the fact that you will likely spend more on rehab than you originally anticipated.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You need to accept that truth to be able to address this problem and accurately analyze deals.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Once you have accepted that, there are three things you should do:<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><span data-preserver-spaces=\"true\">1) Make due diligence a priority&nbsp;<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sure, don\u2019t go overboard, but&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.youtube.com\/watch?v=Bze-BRSgpT0&amp;t=\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">thorough due diligence<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;will catch many of the \u201cunanticipated costs\u201d that tend to blow up rehab budgets.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><span data-preserver-spaces=\"true\">2) Add a contingency<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">We put in a 20% contingency for \u201cunexpected expenses,\u201d which could range from a furnace failing to a delay in getting the project started. You may put in less or more, but I would always add a contingency to any budget.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><span data-preserver-spaces=\"true\">3) Review each project<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s often tempting to just move on to the next thing once a job is done. This is even more true when it comes to projects that go badly. We really don\u2019t want to think about such things. It\u2019s important to fight this temptation.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Analyzing how far off your budget was from the actual expenses and, even more importantly,&nbsp;<\/span><em><span data-preserver-spaces=\"true\">why<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;you were off is essential to improving your ability to estimate rehab projects accurately. Indeed, in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.amazon.com\/Thinking-Fast-Slow-Daniel-Kahneman\/dp\/0374275637\/ref=tmm_hrd_swatch_0?_encoding=UTF8&amp;qid=1685287707&amp;sr=8-1\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">Thinking Fast and Slow<\/span><\/em><\/a><span data-preserver-spaces=\"true\">, Daniel Kahneman found that the best way to estimate a project&#8217;s costs is by looking at similar projects in the past and using them as a guidepost.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With proper due diligence and a contingency, you should be able to stay in the ballpark of your budget. And if you hone your budgets over time by comparing them to the actuals, you should get pretty close to that \u201con time and under budget\u201d goal we all strive for.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But don\u2019t ever get complacent. It\u2019s easy to fall back into the habit of underestimating rehab costs. Because, if nothing else, you\u2019re almost certainly not going to overestimate them.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_73d4d3fc847d52f19855c00e249d1885\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_53ffff01df8246deb0b82a8db3577326\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_fd9f31ec59745f2d5169ffeccbce50c8 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/why-you-should-add-a-contingency-to-your-rehab-budget&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/why-you-should-add-a-contingency-to-your-rehab-budget&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>With the way the market&#8217;s been acting lately, you need to be proactive about protecting yourself. Add this to your list of must-haves.<\/p>\n","protected":false},"author":1689,"featured_media":153719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7392,7119],"tags":[],"class_list":["post-153718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rehab-diy","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/153718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1689"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=153718"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/153718\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/153719"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=153718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=153718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=153718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}