All Forum Posts by: Deborah Wodell

Great questions—and congrats on taking the leap into flipping!

A few quick thoughts from my side (as an investor and broker who works with flippers):

• Leverage your capital: If you have $200k, you don’t have to sink all of that into one deal. Using hard money or private money can allow you to work on 1–2 flips at once, while keeping some cash as a buffer for unexpected costs (which always pop up). Think of your cash as a tool to de-risk, not just fund.

• ARV & Rehab: Get familiar with comps in your specific submarket (not just zip code-wide). Use recent sales (last 3–6 months) of similar homes nearby (within half a mile to 1 mile). Compare size, age, condition, and upgrades. Don’t rely on asking prices—look at actual sold prices for accuracy. For reno costs, tools like Flipster, Rehab Valuator, or even a solid Google Sheet based on your market rates work great. Add a 10–15% buffer minimum to your rehab budget.

• Biggest mistake I see: Over-improving! Renovate to meet the neighborhood, not your personal style. Focus on kitchens, baths, curb appeal, and layout flow. That's where the ROI lives.

And to answer your other questions:

• What makes a good fix and flip property?
  Look for properties priced below market due to condition or motivated sellers in neighborhoods with stable or improving values.

• How can I finance my first flip?
  Hard money loans offer speed but higher costs; private money can have flexible terms; traditional loans have lower rates but stricter qualifications.

• How do I find and vet contractors?Ask for referrals, check licenses and insurance, get multiple bids, and start with smaller jobs if possible.

• Renovations with highest ROI?
  Kitchens, bathrooms, curb appeal, and structural/system fixes.

• Avoiding over-improving?
  Stick to neighborhood standards and comps.

• Permits needed and timelines?
  Depends on city and scope—usually for major work; check local building department.

• Legal pitfalls?
  Permit violations, disclosure issues, lien problems, title issues.

• Should I form an LLC?
  Often recommended for liability protection and tax benefits, but get professional advice. this is needed when getting loans.

• Special insurance?
  Builder’s risk and general liability insurance are important during rehab.

• Pricing and marketing?
  Price competitively based on comps; use an agent unless you have strong FSBO skills.

• Agent vs. FSBO?
  Agents usually get better exposure; FSBO saves commission but requires effort.

• Timeline from purchase to resale?
  Typically 3–6 months depending on rehab scope.

• Minimizing holding costs and maximizing speed?
  Plan rehab carefully, hire good contractors, get permits early, and list quickly.

• Tax implications?
  Flips are taxed as ordinary income; your plan to use a 1031 Exchange for long-term rentals is smart but must follow strict rules.

Hope this helps! Feel free to reach out if you want to talk financing or dive deeper into any of these topics.

Totally agree with everyone here—when a good deal comes up, especially from wholesalers or auctions, there’s rarely time to line up a contractor and get a full scope. You have to move quick and make the best educated guess based on what you know.

I usually look at the age of the property, exterior condition, and anything I can dig up—old listings, tax records, utilities (septic vs. sewer, etc). From there, I break it down by room or by component—flooring cost per sqft, average bedroom refresh cost, things like that—and come up with a rough estimate.

That said, it’s always better to have a good spread going in. If the numbers are tight, it's a risky game. On your first deal, I’d definitely recommend getting a couple contractor bids if possible and really taking time to learn the numbers. The more deals you analyze, the sharper your gut check becomes.

Contractors rarely hit bids exactly, markets shift fast, and surprises are part of the process—so leave yourself enough margin to stay profitable even if things go sideways.

Hey Chase, thanks for sharing your deal breakdown! Once that first-time discount is gone, one way to keep your margins healthy is to start building a solid team of subcontractors—plumbers, electricians, painters, etc.—and get multiple quotes instead of going through one GC for everything. It gives you more control over pricing and quality.

Also, try to find properties with a large enough spread to absorb unexpected issues. Always double-check your comps and build in a buffer for rehab surprises—because they always come up. Tight numbers can turn into break-even projects fast, so the deal has to make sense from the start.

You’re off to a strong start—keep going!

One of the best ways to build confidence in your rehab budgeting is to shadow experienced flippers or contractors in your market — even just walking a few properties with them can teach you a ton about how they price out jobs and what they look for. Also, start building your own running list of local contractor bids (for roofing, flooring, electrical, etc.) so you can quickly plug in rough estimates when analyzing deals. It’s not perfect at first, but it gets easier once you’ve seen a few projects come to life. 

Yes! We still get those! With a good fico and enough exp, you can get some good terms. Just recently quoted a 90% LTC with 9% interest. So def possible. 

With rates up and rehab costs eating into the margins, curious how others are adjusting. A lot of people used to be cool with $30–40K net, but now some won’t touch a deal unless it clears $50K or more.

The 70% rule is still a solid baseline, but deals that actually fit that and still leave room for profit are getting harder to find.

What’s your cutoff these days? What’s the least you’d be okay making on a flip for it to still feel worth the time and effort?

Drop your thoughts. Always good to hear how others are navigating this market.

Hey Lexi! I really admire your hustle and the attention to detail in your flips — sounds like you’ve built a great track record and clearly know how to execute.

That said, I just wanted to be upfront — most private lenders (especially those funding in 1st position) typically look for some borrower skin in the game. It’s not so much about trust as it is about risk management and alignment.

Also, asking for 100% financing with no formal application, especially on a $319K ask, can be a tough sell even with experience — particularly in today’s tighter lending environment.

If you're flexible on terms or open to some kind of shared structure (or even a JV route), you may get better traction. But if you're open to exploring hard or private money options, I'd be happy to take a look. For a flip, most lenders typically prefer to see at least 10% down, with them covering the rest of the purchase and the rehab too.

Hey Ricardo — welcome to the game!

You're off to a strong start, especially with your construction background (huge plus for flips). For Detroit, focus on neighborhoods like Grandmont-Rosedale, East English Village, and Bagley — they’ve got solid comps and steady investor activity. Be cautious in areas with high vacancy or low owner-occupancy rates unless you’re getting in super low and can handle the risk.

A few quick tips:

• Run your numbers conservatively — always build in extra for rehab and holding costs.

• Don’t skip title work — Detroit has a history of tangled titles, so use a solid title company.

• Network like crazy — talk to local wholesalers, join meetups, and ask other investors who they trust.

• Walk before you run — don’t over-leverage on your first deal.

I’d love to hear from other lenders and brokers on this...

How do you handle it when a borrower brings you a deal that looks solid on paper—strong ARV, low purchase price, great location—but they've got:

🔻 Credit in the low 500s
🔻 Zero reserves or liquidity
🔻 And no real track record

Do you consider the deal itself and try to structure something creative? Or is that usually where the conversation ends?

I know we all want to help people get started—but also have to protect the capital. Just curious how others walk that line.

Would love to hear your thoughts, insights, or stories (good or bad).

There are lots of programs now for foreign nationals, most DSCR lenders typically offer up to 65%–70% LTV, meaning you’d need around 30%–35% down, sometimes more depending on the deal, property type, and market.

Some lenders may go lower on LTV if credit, reserves, or documentation is limited. But if you can show strong reserves or use a U.S. LLC with solid cash flow, you might get more flexibility.