How to Protect Your Fix & Flip Margins

Fix & flip margins get squeezed from both sides — acquisition costs on one end, rehab overruns and carrying costs on the other. The investors who consistently hit their numbers treat margin protection as a discipline, not an afterthought.

The most important lever is underwriting conservatively from day one. Build a 10–15% contingency into every rehab budget, and underwrite to an ARV that you're confident will hold even if the market softens slightly.

Speed is your second biggest protection. Every extra week you hold a property costs money in interest, taxes, insurance, and utilities. Structure your loan to allow fast draws, keep your contractor on a milestone-based schedule, and have your exit strategy mapped before you close.