House Flipping: The Math, Timeline, and Risk Checklist
Answer 5 questions to get a 5-category flip checklist: the flip math model, budget composition, timeline management, the risk list, and exit strategy — do the math before the first hammer swings.
Flipping is a margin business: buy low, renovate, sell high — you earn (or lose) on every error in all three steps. The industry wisdom is that only a minority of flippers profit consistently, because most underestimate renovation overruns, schedule slips, and carrying costs. The professional workflow: identify → inspect and run a pro-forma → offer → raise capital → agreements → project management → construction management → disposition. This checklist compresses those eight steps into five categories, from the math to the exit. Every figure, ratio, and tax rule is flagged for confirmation.
- The 70% rule is a starting point — rebuild the model with your real numbers
- Every extra month of timeline eats profit through carrying costs
- Flip properties typically don't qualify for 1031 treatment — gains are ordinary income