What Makes a Fix & Flip Deal Fundable in 2026?

Question

I’d love to hear how other investors are underwriting fix & flip deals right now.

For me, the big factors are:

• - Purchase price versus ARV.
• - Rehab scope.
• - Exit strategy.
• - Time to completion.
• - Local demand after renovation.
• - Margin for error if the sale takes longer than expected.

In today’s market, what makes a deal worth taking on, and what makes you walk away?

Do you look more at:

• -  The spread?
• - The neighborhood?
• - The quality of the rehab?
• - The borrower’s experience?
• - The speed of the exit?

Curious how others are thinking about flips right now and what rules of thumb you’re using before pulling the trigger.

Chris Seveney · Answer

Experience makes a deal significantly more fundable. Not only experience of the borrower but also who is their GC, do they have experience in that market are very critical factors.

Stacy Raskin · Answer

I'm seeing that how much the investor can buy the distressed property for is pretty important as well as what their funding strategies are. There are fix and flip financing strategies with up to 90% of the purchase price and 100% of the rehab done on draws depending on borrower credit score and property location. Getting that extra 10% for the purchase price for 80% to 90% can help the borrower be open to different properties. A lot of factors matter including investor experience and how much knowledgeable the investor is of the local market.

Mike Grudzien · Answer

All the above.