Most flips that lose money do not fail at the sale. They fail in the renovation budget. Here is the framework we use on every Atlanta flip to keep rehab costs predictable.
1. Walk the property with a contractor before you offer
A 30 minute walkthrough with a trusted general contractor catches the expensive surprises: foundation movement, old wiring, roof age and plumbing. These four items can swing a budget by $20,000 or more.
2. Price by room, not by guess
Break the scope into kitchen, baths, flooring, paint, exterior and systems. Assign a cost to each. This makes it easy to see where the money goes and what to cut if numbers get tight.
- Kitchen: the biggest value driver. Cabinets, counters, lighting and appliances.
- Bathrooms: tile, vanity and fixtures. Buyers notice dated baths immediately.
- Flooring and paint: low cost, high impact, and they unify the whole house.
3. Always add a contingency
We add 10 to 15% on top of every rehab estimate. Older Atlanta homes almost always hide something behind the walls.
A deal that only works with zero surprises is not a deal. Build the contingency in before you make the offer.
4. Spend where buyers pay
Put money into kitchens, baths, curb appeal and open layouts. Skip luxury upgrades that the neighborhood comps do not support.
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