A flip is purchased twice: first with the acquisition, then through hundreds of construction decisions. The model must leave room for both.
01 / Before the offer
Let the complete project set the maximum price.
Begin with a conservative resale range supported by closed sales that match the finished property's location, size, layout, condition, lot, parking, and buyer. Active listings show competition; closed sales show what buyers actually accepted.
Treat rules of thumb as a first filter, never the acquisition model. South Florida insurance, permitting, roofing, impact-resistant openings, air-conditioning, pool work, moisture remediation, and holding time can make two similarly priced properties very different projects.
If a small reduction in resale value eliminates the profit, the deal has little room for construction or market error.
02 / Property record
Investigate the building—not just the finishes.
Condition
Use qualified inspectors and specialists to evaluate roof, structure, electrical, plumbing, HVAC, moisture, termites, sewer or septic, pool, windows and doors, and drainage.
Permits and violations
Search permit history, open or expired permits, code cases, unsafe-structure records, certificates, and unpermitted additions. Confirm jurisdiction; South Florida municipalities may maintain separate systems.
Title and liens
Coordinate appropriate title, lien, municipal, utility, and association searches. Understand what must be resolved before closing and what may survive the transfer.
Finished use
Verify that the intended bedroom count, layout, addition, parking, pool, and any rental or resale positioning can be legally permitted and marketed as planned.
03 / Cost control
Build five budgets—not one renovation number.
- 01
Acquisition
Purchase, title, inspections, lender fees, closing costs, and immediate security.
- 02
Hard and soft construction
Labor, material, plans, engineering, permits, inspections, dumpsters, and utilities.
- 03
Carrying
Interest, taxes, insurance, association, lawn, pool, electricity, water, and security.
- 04
Sale and closeout
Staging, photography, cleaning, landscaping, commissions, concessions, and closing costs.
- 05
Contingency
A separate reserve sized to property condition, diligence quality, and scope uncertainty.
Tie the scope to a room-by-room and system-by-system list with quantities, allowances, inclusions, exclusions, responsibility, and a payment schedule. “Kitchen renovation” is not a controllable budget line.
04 / Project control
Make changes visible before they become overruns.
Contractor and project controls
- Verify the appropriate active license and insurance directly
- Compare bids against the same written scope
- Document permits, inspections, milestones, and decision owners
- Connect payments to completed, verified work—not calendar dates alone
- Use written change orders showing cost and schedule impact
- Track committed, spent, forecast, and remaining contingency separately
- Collect releases, approvals, warranties, manuals, and closeout records
Florida DBPR provides an official license-verification guide and portal. Confirm the license type is appropriate for the contracted work and check applicable local requirements.
Schedule the dependencies
The project schedule should show permits, long-lead materials, inspections, utility work, weather-sensitive tasks, and the sequence between trades. Add time for punch, cleaning, photography, listing preparation, buyer diligence, and closing—not just construction.
05 / Buyer and market
Protect the exit throughout the renovation.
Define the target buyer and price band before finalizing the scope. Spend where the buyer sees value, but do not allow design upgrades to displace essential systems, permits, durability, or margin.
Retail sale
Conservative price range, likely time to contract, concessions, and selling costs.
Lower-price sale
Know the price that protects liquidity if the market or timeline moves against you.
Rental hold
Confirm legal use, supportable rent, required refinance, and cash flow after repairs.
Update comparable sales, active competition, remaining budget, projected completion, and net proceeds at regular checkpoints. The original resale value should not remain frozen while the market and project change.
06 / Final gate
The pre-offer fix-and-flip checklist.
- Define the finished buyer, product, and price band.
- Support resale with relevant closed comparables and a downside range.
- Inspect major systems and investigate moisture, wind, flood, and storm exposure.
- Search permits, violations, liens, association matters, and property records.
- Write a detailed scope and compare qualified contractor bids.
- Separate acquisition, renovation, carrying, sale, and contingency budgets.
- Build a schedule that includes permits, inspections, closeout, marketing, and sale.
- Verify financing draws, interest, extensions, fees, and cash requirements.
- Calculate net proceeds after realistic selling costs and concessions.
- Define a legal, financeable backup exit and the trigger for using it.
Educational information only. Property condition, permits, licensing, costs, and construction requirements vary. Use appropriate inspectors, engineers, contractors, attorneys, title professionals, insurance professionals, tax advisers, lenders, and other licensed specialists for the property and project.