Offered with 10% discount to buffer in potential capex buffer and was accepted by seller.

-  What percentages or formulas do you rely on (e.g. rehab, holding costs, buffer, etc.)?

Some investors I know are stacking up personal lines of credit or business credit cards as emergency buffers, just to stay nimble.Personally, I’m focusing more on staying liquid than aggressively scaling right now.

If the appraisal is good enough with 675000 as of now, conservatively in 5 years with rent upgrades, refinance should be around 750000-775000 and I can manage to keep $100k as buffer during refi. 

You are assuming risk by taking on properties needing work, and any number of unknown expenses could be lurking, so it is OKAY to build that buffer into the offer price. 

I’ve started building in a buffer for unexpected tax jumps when analyzing properties in those areas — especially near development zones.Will it continue?

Know your comps cold, budget with a buffer, and always have a backup plan (like holding as a rental if it doesn’t sell fast).

It's not if, it's when.Cash flow ≠ tax buffer.

As a private lender, I would want to see at least a $50k equity buffer on most properties regardless of value to absorb price declines or foreclosure erosion for investment properties.

The current owner bought it for $420K via tax lien, and we’ve verbally agreed on a $470K purchase price.Renovation costs are estimated at $180K–$220K (based on two contractor quotes, plus a 25% buffer), with an ARV of $800K–$900K.The challenge is financing.