The deal was profitable… until the rehab budget moved.

I was looking at a flip scenario recently that looked great at first, Purchase price worked. ARV made sense. Financing wasn't the problem, Then the rehab estimate changed.

Not by some crazy amount either. Just enough that what looked like a comfortable deal suddenly had a much thinner margin.

It got me thinking about how experienced investors underwrite renovations today. Material and labor costs can move, contractors miss things, and once walls start opening up, surprises happen.

For the flippers here: how much cushion are you adding to your rehab budget before you feel comfortable closing?

10%? 15%? 20%+?

And has that number changed for you over the last couple of years?