Was daydreaming earlier about flipping houses. Imagine buying this kinda shabby bungalow, fixing it up nice, and then realizing after all that work you barely broke even... or worse. Um, how do you guys figure out the math to avoid that?
Honestly, the math part isn't rocket science, but it's easy to underestimate costs. I've seen plenty of folks get burned by surprise repairs or holding costs they didn't factor in. A good rule of thumb is the 70% rule—basically, don't pay more than 70% of the after-repair value minus your renovation costs. But even then, unexpected stuff pops up... ever thought about how you'd handle a flip if the market suddenly cooled off mid-project?
"ever thought about how you'd handle a flip if the market suddenly cooled off mid-project?"
That's a great point, and honestly, it's something a lot of people overlook. I've had a client who got caught in exactly that scenario—market slowed down right as they were finishing up renovations. They ended up renting it out short-term to cover holding costs until things picked back up. Not ideal, but better than taking a big loss. Always good to have a plan B (and maybe even a plan C...) just in case the market decides not to cooperate.
