What's the biggest thing that killed your budget on a fix and flip

[David Amir]

I’ve been talking to a few flippers in South Florida and I keep hearing the same thing — it’s never the big items that kill the budget, it’s the “small surprises” that stack up.

Curious what’s hit you hardest:

• "permits/inspections"
• "Contractors change orders"
• "Material delays/prices"
• "Hidden structural issues"
• "Scope creep mid-project"
• What’s the one thing that always ends up costing more than expected for you?
  

[Corinna Negron]

Quote from @David Amir:

I’ve been talking to a few flippers in South Florida and I keep hearing the same thing — it’s never the big items that kill the budget, it’s the “small surprises” that stack up.

Curious what’s hit you hardest:

• "permits/inspections"
• "Contractors change orders"
• "Material delays/prices"
• "Hidden structural issues"
• "Scope creep mid-project"
• What’s the one thing that always ends up costing more than expected for you

For me it’s usually timeline creep more than the actual rehab line items themselves.A project that was supposed to be
4 months

suddenly becomes:
7 months

and then:
carrying costs
insuranced
utilitie
interest
taxes and resale timing quietly eat the deal alive.

The scary part is a lot of flips still “look profitable” on the construction budget while the holding costs are what actually destroy the margin.

I’d put contractor change orders and hidden scope right behind that though, especially once walls get opened and everyone suddenly “finds” new work.