CalculateRealEstateROI

House Flipping

What are the biggest flip mistakes?

Over-rehabbing for the neighborhood, underestimating timeline, missing commission/closing in pro forma.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Over-rehabbing for the neighborhood, underestimating timeline, missing commission/closing in pro forma.

Expanded explanation

Match finish level to comp set — luxury finishes in a workforce neighborhood don't recoup. Use trailing comps within ½ mile, last 6 months. Always include 6% commission + 2% closing in pro forma.

Examples

  • $15k 'upgrades' adding $5k to ARV in workforce comps.

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