5 Questions I ask before looking at a fix and flip.

Rehabbing & House Flipping
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5 Questions I ask before looking at a fix and flip.

James Irvine
Lender · Las Vegas · Member since 2026 · 14 posts · 2 votes

As a flipper myself, I've found that investors can spend a tremendous amount of time gathering documents before answering a few basic questions about the deal.

Before getting deep into financing, I like to start with the five:

1) Where is the property?

2) What's the purchase price?

3) What's the expected ARV?

4) How much financing is needed?

5) How many fix and flip projects have you completed in the last 3-4 years?

Those five answers won't underwrite the deal, but they can tell you pretty quickly whether it's worth taking it to the next level.

For the experienced flippers here: What would you add as question #6?

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  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    1d

    every deal starts with market for use regardless of exit strategy. the market and demographics have to qualify before anything else. then its physical attributes/specific location in the market, then we consider price and the details. doesn't matter what the price arv or anything else is if the market doesn't qualify.

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    • James Irvine
      OP
      Lender · Las Vegas · Member since 2026 · 14 posts · 2 votes
      1d

      Michael,

      exactly-market for use, to put it another way, "highest and best use".

      That's an important distinction. The market has to support what you intend to do with the property before price, financing or rehab

      numbers really matter. You can change a lot of things about a deal, but you can't change where the property is or create demand

      that isn't there. Good attention to the discussion. It is nice to get the views and opinions from experienced investors to help guide

      those reading along with us when they are less experienced. Thank you for your thougts.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1d

    I always think you need to look at the current supply vs demand. I see "deals" in the urban core but there is many active properties vs ones sold. Vice versa I see other areas where there is a lack of active listings but plenty of solds.

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  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 188 posts · 57 votes
    19h

    @James Irvine , My question #6 would be: "What is the detailed rehab budget, and what contingency is built into it?" Purchase price and ARV help frame the opportunity, but the renovation scope is often where a promising flip becomes either profitable or problematic. From experience owning properties and overseeing renovation work, early estimates can miss permit requirements, structural issues, utility upgrades, material changes, and carrying costs caused by delays.

    A credible answer should include a line-item scope, contractor estimates or recent comparable costs, a realistic timeline, and a contingency appropriate for the property’s condition. I would also want to know whether interest, taxes, insurance, utilities, and selling costs are included in the numbers. A deal can have an attractive projected spread and still run short of cash if the rehab budget is too optimistic. Those five opening questions identify whether a deal deserves attention; question #6 helps determine whether the plan can survive execution.

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    • James Irvine
      OP
      Lender · Las Vegas · Member since 2026 · 14 posts · 2 votes
      5h

      Divin, exactly. That is an excellent #6. The first five are what I use to decide whether it makes sense to go deeper. Once it does, the rehab budget, contingency, timeline, carrying costs and total sources and uses become critical. I've seen plenty of deals where the ARV looked great but the borrower underestimated what it would actually cost to get there. That is where the surprises begin. Thanks for adding that.

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  • Marcus Delgado
    Investor · Forth Worth, TX · Member since 2026 · 5 posts · 2 votes
    4h

    I totaly agree with this approach that those five questions filter out like 80% of the junk deals right away. I'd add question #6 as what's your exit strategy if the flip doesn't sell in 90 days? Cause alot of newer flippers dont think about that and then they get stuck holding the bag. Also I use Estatalyze for pulling comps and market data before I even bother running numbers, its way faster than digging through MLS stuff. But yeah the five questions are solid, I'd maybe also ask if they have a contractor lined up already cause that can makeor break a timeline

    M

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  • John Leland
    Specialist · Member since 2026 · 4 posts · 1 vote
    3h

    I always ask "why this one".

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