Episode Details

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The fastest way to lose money on a fix and flip isn’t picking the wrong paint color, it’s ignoring the costs that never feel “big” until your profit is gone. We’re talking to fix and flip investors who budget for kitchens and roofs, but still watch deals quietly die in the forgotten line items: holding costs, permits, inspections, and the constant drip of small expenses that show up every month a project stays open.

We break down what really starts the day you close: property taxes that keep running, vacant renovation insurance that costs more than you expect, utilities that have to stay on, and financing costs like interest and points that compound with every delay. Then we get practical about permits and inspections, because the real damage often comes from time, not just fees. A failed inspection can steal a week or two, and that schedule slip feeds straight back into holding costs.

We also walk through the “small stuff” that adds up fast: dumpsters and haul-off, lockboxes and security, lawn care to avoid code issues, and cleaning before photos. Finally, we hit the finish line costs that hurt the most if you didn’t plan for them: closing costs on the buy and the sell, agent commissions, and buyer concessions like repair credits and seller-paid closing costs.

If you want more consistent fix and flip profits, we share the habits that make the difference: a standard line item list for every deal, a 10% to 15% renovation contingency, and holding costs run on a longer-than-expected timeline. Subscribe for more straight talk on underwriting, budgeting, and systems, then share this episode with a flipper who keeps getting surprised by “random” costs and leave a review with the line item you want us to unpack next.