The purchase price and the loan terms are the parts everyone focuses on. The renovation execution is what actually determines whether you make money. Scope creep, contractor delays, and budget overruns kill flip margins faster than any market correction.
The Scope of Work: Your Most Important Document
Before you make an offer, create a line-item scope of work for every trade: demo, framing, plumbing, electrical, HVAC, drywall, flooring, kitchen, bathrooms, exterior, landscaping. Get at least two contractor bids on each line item. Add 10–15% contingency on top. This document becomes your draw request form with your lender and your contractor's performance benchmark.
Managing Your GC
The relationship with your general contractor determines your project timeline. Clear milestones with written deadlines. Payment tied to completed milestones, not calendar dates. Weekly site visits. A signed contract that specifies your right to terminate for cause if work falls more than 14 days behind schedule without prior notice.
Draw Timing
Your lender releases draws after inspection verification. Time your draws so you're not funding the next phase out of pocket waiting for reimbursement. Coordinate with your lender on inspection scheduling — most inspectors need 48–72 hours notice. Request draws before you're fully out of money for the phase, not after.
The Market on Your Exit
Before you start the renovation, you need a current comps analysis. Before you list, you need another one. Markets shift in 3–6 months. List aggressively the day your renovation is complete — every month on the market costs you carrying cost, interest, and taxes.
