How much available capital is enough for a flip?

[Nicholas Floyd]

One thing I’ve noticed with fix-and-flip projects is that the purchase price is only part of the equation.

Renovations run over budget. Materials go up. Contractors find unexpected issues. Sometimes the property takes longer to sell than expected.

That’s why I think having access to additional capital can be just as important as having the initial financing lined up.

Some investors keep cash reserves, while others have business lines of credit, business credit cards, or other funding available so they don’t have to scramble when something unexpected happens.

For the experienced flippers here,  how much of a financial cushion do you normally like to have available before starting a project?