Plain explanation
A fix-and-flip project combines acquisition, construction, holding, financing, compliance, and resale risk. A useful outline begins with the property’s current condition and a written scope, then tests total cost and timing under more than one scenario.
Why it matters
Small estimating errors can combine into a major shortfall. Organized assumptions help a reviewer distinguish repairs from improvements, identify permit or specialist needs, set reserves, and understand how delays or a different resale price may affect the project.
What information to prepare
- Inspection findings and photographs
- Room-by-room scope with labor and material estimates
- Contractor availability, licensing, insurance, and references
- Permit, utility, environmental, and zoning questions
- Acquisition, financing, tax, insurance, security, and holding costs
- Conservative resale comparisons, selling costs, schedule, and contingency
Common mistakes to avoid
- Using a single walkthrough as the full inspection
- Leaving holding and transaction costs out of the budget
- Starting work before confirming permits and scope
- Choosing only the lowest estimate without checking qualifications
- Treating projected resale value or profit as guaranteed
Questions to ask yourself
- What hidden conditions are most plausible for this property?
- How much time and reserve are available if work is delayed?
- Who will verify completed work and approve changes?