I’m now underwriting with a hefty buffer on the insurance line item—sometimes assuming a 15% annual increase for the first few years just to be safe.For taxes, I never use the current owner's tax bill.

Variance: Do you find that the "non homestead" millage rates listed on the Michigan Treasury site are reliable for underwriting, or are there hidden local fees/assessments you always tack on as a "buffer?

He will need 20% down + 6 months reserves + closing costs + 1% liquidity buffer. 

Things can change in six months.You need more than a buffer. 

Are you planning to keep some extra buffer for those gaps between draws?

If you buy it, make sure your rental numbers work with a 'no-garage' vacancy buffer

Building in realistic timelines (and some buffer) has made a big difference.

Buy lower than you think and add more buffers than you think.

Otherwise, what data are you basing this comment on?

That buffer saved me when three units went vacant at once last year.