How much for contingency?

[Marcella Sykes]

Considering a property purchase of $50,000, needing a complete overhaul. ARV $234,000. Estimated repairs $110,000 how much should I include for contingencies?

[Adam Abdel-Hafez]

Marcella Sykes yes, I agree with J Scott. If you're doing a gut, there is really no reason to have a contingency. Just make sure that you have a capable GC with a very detailed scope of work. If it makes you comfortable, you can do a 5% contingency just in case, but on a gut it really isn't necessary.