No matter how you look at it, it is costing you money.On the rehab part there are unfortunately many times a surprise comes up.

Quote from @Giovanni Choisne: With the recent severe weather and other unexpected issues that can come up during a project, I’ve been thinking more about how experienced investors factor in the things you can’t always see upfront.Even when the numbers look solid, surprises like weather damage, delays, or hidden repairs can change the outcome quickly.

In general, I keep $20K for the unexpected things that can arise and CAPEX a small percentage of rent on top of that.

They're budgeting for permit fees, inspections, potential delays, and the chance that a city inspector finds something unexpected.

My wife and I purchased a newer townhome about 2 years ago in the Denver area and now unexpectedly need to relocate to the Midwest.

The real question is whether you can cover surprises without getting forced into a bad refinance or a fire sale.A practical way to think about it:First, confirm what $20,000 actually buys youIf you are using conventional financing, $20,000 often becomes tight once you include closing costs, inspection items, initial repairs, and lender escrows.

.) • Studying your local market and rental demand • Building a solid team — lender, agent, insurance, and contractor • Keeping reserves so one surprise repair doesn’t derail your plans For many first-time investors, house hacking or starting with a small multi-unit is a practical way to enter the market while minimizing risk and lowering living expenses. 

Utilities, permits (along with the time they require which adds to carrying costs), interest payments, etc. can tip a deal that initially looks good to a cash drain so factor them in and be sure to put in a 10% reserve for the unexpected costs which you know will come up. 

Hold strong reserves to cover the unexpected, preferably 2 unexpected in the same month!

Any unexpected fees or costs?