Key Takeaways
- Approximately 25-35% of flips underperform targets, with 10-15% resulting in outright losses.
- Renovation overruns (60%+), extended hold times (40%+), and ARV over-estimation (30%+) are the most common pitfalls.
- Pitfalls compound—a renovation overrun extends the timeline, increasing financing and holding costs.
- A prevention mindset with built-in contingencies is more effective than reactive problem-solving.
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Test Your Knowledge
1.What percentage of flipped properties result in outright losses?
2.Which fix-and-flip pitfall affects the highest percentage of projects?
3.How much contingency should be built into renovation budgets?