Wholesaler ARV, agent's CMA, your lender's appraisal — none of these replace your own comp analysis. Pull your own comparable sales before every offer. Every time. This is non-negotiable.
Making an offer before getting a contractor walkthrough on a heavy rehab. Your $40,000 estimate becomes a $75,000 actual once the walls open. Rule: no offer on any renovation over $30,000 without a contractor estimate.
New investors calculate purchase + rehab and forget everything in between. Hard money interest, taxes, insurance, utilities — on a 7-month hold these can easily total $25,000–$40,000. Model them before you offer.
Never pay more than 10–15% upfront for mobilization and materials. The rest pays out on completion milestones. Contractors who need large upfront draws before work begins are a red flag.
$80,000 kitchens in $280,000 neighborhoods. The comps don't support it and retail buyers won't pay for it. Match your finish level to what's selling in the immediate area — not what you'd personally want in a kitchen.
Assuming the flip will work and never modeling an alternative. Before you close, run the BRRRR numbers — does it work as a rental if the flip market softens? Having a backup exit prevents panic decisions mid-project.
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He has been investing in real estate for 20+ years.