Here's how we handled it:Carpet removal to prevent mold and speed dryingIndustrial fans and a dehumidifier brought in immediatelyDrywall and baseboard cut 6–8 inches from the floor (no moisture detected with a meter, but we didn’t want to risk it)96-hour drying period with equipment running continuouslyDrywall & painting contractor brought in for a full room (and full house, once we committed to a complete re-pipe)New carpet and padding orderedRe-pipe scheduled and completedThe Cost Breakdown:Carpet and Padding: $527.84Drywall, Trim, Paint, Finish Work: $2,200.00Paint Supplies: $87.70Full Re-Pipe: $5,242.20🔻 Total Out-of-Pocket: $8,057.74Yes, we’ve submitted an insurance claim and are optimistic about some coverage, but this situation reinforces a point I think many newer investors overlook: you must be well-capitalized.The Reserve Rule We Live By:We personally aim to keep a minimum of $10,000 in reserves per door.

But the cash flow helps pad any cap ex issues I’ve got with my other properties that don’t have much cash flow.

After my reply, I got an email asking me to watch a 90-minute webinar.I watched it — there were a few decent nuggets of wisdom, but half of it was padded with long stories from his childhood.

I have a couple of clients that operate "pad splits" and a good buddy that's done them for 20 years.

He will live there and watch over the three teak locations and animals.Got the site and pad ready. 

Originally modeled a 12–18 month refi, but we’re now framing it more realistically as 24–36 months, with underwriting padded to 40 to avoid any surprises if the market shifts or stabilization takes longer.Our construction edge gives us speed and cost control, but we’re being disciplined about assuming nothing goes perfectly.We also took your note on bonus equity to heart.

So if you spent another $100k on renovations and 50% of that is bonus eligible, that $50k would be fully deductible under the new 100% bonus rules if acquired after 1/19/25.One more thing worth mentioning: partial asset dispositions (PADs) are often overlooked.

But, I might wholesale it.Secondly learn to comp better, of course.Third add in your sales costs of about 8% to 10% For an ARV of $325,000 sold - use about $227,000 purchase (70%)I'm not sure how you could buy at $198,000 and sell at $325,000 an not make a few bucks.Seems the only variable, is that you took way tooooo loooonnngg to get it in the market.Next time, buy at $198,000 and sell to a flipper for $227,000 and make a quick $30,000In Flipping, time & timing are crucialIn a normal flipAlways pad expenses by at least 10%Always pad time to complete by at least 10%

As families explore options for aging parents and loved ones, many are considering Accessory Dwelling Units (ADUs), sometimes called Granny Pads.

We have shifted from electronic pin pad locks to quickset rekeyable knobs.