What happens when your flip takes 90 days longer than planned?

Question

A lot of deals look profitable when everything goes according to schedule. The real test is what the numbers look like when the project gets delayed.

An extra 60–90 days could mean more:• Interest payments• Taxes and insurance• Utilities• Contractor expenses• Unexpected repairs• Capital tied up that could be used on another deal

That’s why I think every flipper should run the numbers based on the worst realistic scenario, not just the best case scenario.

Before leveraging capital, know what you can comfortably afford if the property takes longer to rehab or sell than expected.

Having access to business funding, a business line of credit, or other working capital options can help preserve cash reserves, but the funding still has to make sense for the deal.

When you analyze a flip, how many extra months of holding costs do you build into your numbers?

Divin Kanyama · Answer

This is such an important point, @Nicholas Floyd . A flip can look great on paper when everything goes right, but the real question is whether you can still comfortably carry the deal when the timeline, rehab budget, or sale price moves against you.

As a starting point, I like building in at least three to six extra months of holding costs. For a heavier rehab, permitting issues, or a slower market, I would lean toward the higher end—or beyond it.

For example, assume a deal shows a projected profit of $50,000. If a three-month delay adds $9,000 in holding costs, repairs run $10,000 over budget, and the resale price comes in $15,000 lower than expected, that profit drops to about $16,000 before any additional surprises. That quick stress test can completely change whether the risk is worth taking.

A business line of credit can definitely provide flexibility, but I see it as a backup to healthy reserves—not a replacement for them. If the deal only works under perfect assumptions, the margin is probably too thin. How many extra months do others build in, and do you adjust that buffer based on the project size or permitting risk?

Nicholas Floyd · Answer

@Divin Kanyama

Exactly. I’m with you on stress-testing the deal instead of assuming everything goes perfectly. I’d rather see someone build in 3–6 months of extra carrying costs, with a larger buffer for heavier rehabs, permits, or more expensive projects.

I also agree that a business line of credit should be backup liquidity, not what makes a bad deal work. Do your due diligence on the numbers first, keep healthy reserves, and only leverage what you can comfortably afford if the project runs longer than expected. That combination gives you a much better chance of protecting the deal when something unexpected happens.

What happens when your flip takes 90 days longer than planned?

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