I try to keep at least a 1-day buffer when possible, especially between MTRs.

Separate execution risk from valuation riskWhen ARV is reasonable, the real risk becomes:Permitting delaysContractor performanceTimeline managementThat’s where having scope, GC alignment, and buffers matters most.4.

DSCR Buffer TargetLenders may approve at 1.00–1.15, but many investors now target:1.25+ day one1.15+ under stressed assumptionsIf you can’t clear that, you’re buying optionality risk.4.

In a nutshell, you can be successful, therefore, always have a buffer and closely monitor market and lending conditions.

In buildings like this, it’s mostly about setting expectations, adding a few inexpensive sound buffers, and keeping emotions from overheating.

It will cost something, but this is your buffer for when the scope inevitably creeps higher than projected.

That day one equity is the same as appreciation and serves as your buffer, instead of counting on a future value and eating negative cash flow.

To expand on this, do you create a buffer with your cash on cash estimates of rents don’t quite meet your mark and/or if expenses of the property are higher than expected?

While supportive for affordability, this directive raises concerns about GSE capital buffers and systemic risk if housing markets soften later in 2026.Leadership and Legal PressuresThe Department of Justice issued grand jury subpoenas to Fed Chair Jerome Powell and senior officials, tied to testimony on a $2.5 billion renovation project.

The cashflow from the portfolio is meant to act as more of a buffer against risk than a source of wealth creation.