This is a starter framework. Your local market + your financing terms matter more than any “rule.” Use the shop spreadsheets for deeper detail.
1) The deal is made on the buy
Avoid the trap: “I’ll make it up on the rehab.” You rarely do. Start with conservative numbers.
2) Rehab scope: separate needs from wants
First: roof, foundation, mechanicals, safety. Second: kitchens/baths. Third: cosmetics.
3) Hold costs are real
Interest, utilities, insurance, taxes, and time delays eat profit. Build buffers.
4) Exit strategy
Sell retail, rent/refi, or wholesale. Know your plan before closing.
