The 3 Numbers That Kill Most Residential Real Estate Deals
Most new investors lose money not because the deal was bad — but because they missed the math on three things.
1. Repair Estimates
"About $30k" is not a number. Walk the property with a contractor and get a line-item breakdown. The difference between "about 30k" and an actual scope of work can be $15-20k — that's your entire profit on a flip.
2. Holding Costs
Every month you hold a property you're paying mortgage, insurance, utilities, and lawn care. Most flippers budget 3 months. Most flips take 5-6. That's 2-3 months of burn you didn't plan for.
3. ARV Assumptions
Stop using Zillow estimates as your after-repair value. Pull 3-5 actual closed comps within 0.5 miles, same bedroom count, from the last 90 days. If you can't find comps, that's a signal — not a problem to ignore.
I built Urban Property AI to help investors run these numbers faster and more accurately. We use AI to pull real comps, estimate repair costs by property type, and model holding cost scenarios so you can see exactly where a deal breaks — before you buy.
Free to join. Bring a deal and let's analyze it together.
