5 Common Fix and Flip Mistakes (And How to Avoid Them)
Fix and flip investing can be a fast path to real estate profits, but it’s not without risks. Inexperienced investors (and even seasoned ones) can fall into common traps that eat into their bottom line.
At Barnett REI Finance, we’ve funded thousands of deals, and we’ve seen what works and what doesn’t. Below are five of the most common fix-and-flip mistakes and how to avoid them so you can flip smarter, not harder.
Overpaying for the Property
One of the biggest mistakes? Paying too much on the front end.
If you don’t buy right, you’re putting your profit at risk before renovations even start.
How to avoid it:
Run comps with a local agent or appraiser
Don’t let emotion drive the deal. Stick to the numbers
2. Underestimating the Rehab Budget
Renovations almost always cost more than expected. If you don’t cushion your budget for surprises you can lose money fast.
How to avoid it:
Get detailed contractor bids before closing
Add a 10-15% contingency for unexpected issues
Work with experienced crews who know investment rehabs
3. Taking Too Long to Renovate and Sell
Time is money. The longer your project drags on, the more you’ll pay in holding costs, loan interest, and missed opportunities
How to avoid it:
Build a clear timeline with your contractor
Use draw schedules to keep projects on track
Work with a lender like Barnett REI Finance, who can close fast and keep your project moving
4. Skipping the Inspection or Due Diligence
Buying a house without a full inspection is like flipping a coin. You might win, but you might inherit foundation issues, mold, or worse.
How to avoid it:
Always get a professional Inspection
Wallk the property with your contractor
Don’t rely solely on seller disclosures
5. Choosing the Wrong Financing Partner
Many new investors underestimate the importance of aligning their financing with the needs of the project. Using the wrong loan product or working with a lender unfamiliar with investment properties can lead to delays, unexpected costs, or even missed opportunities.
How to avoid it:
Choose a lender who specializes in real estate investment loans
Look for flexible terms that cover both purchase and rehab
Prioritize speed, transparency, and investor-friendly underwriting
Find a lender like Barnett REI Finance
Final Thoughts
Fix-and-flip investing can be highly profitable, but only when you avoid these common mistakes. Stay disciplined, do your due diligence, and surround yourself with a strong team, including the right lender. When you’re ready to move fast and fix-and-flip with confidence, Barnett REI Finance is here to help.
Apply for a fix and flip loan today, or reach out for a deal review.