Blog

Notes on underwriting deals that should not exist

Long-form analysis on fix & flip underwriting, BRRRR financing, ARV methodology, and institutional risk management — built around the work DealIntel does on every deal.

Latest (28)

Underwriting · Jun 4, 2026 · 14 min read
How to Analyze a Fix and Flip Deal (The Institutional Workflow)
A step-by-step workflow for underwriting a fix and flip deal the way an institutional capital allocator would — ARV from a confidence-weighted comp set, MAO from the 70% rule, stress-tested rehab budget, full carry math, and a pre-mortem before the offer goes in.
Read →
Risk · Jun 3, 2026 · 11 min read
Fix & Flip Red Flags Checklist (25 Things to Inspect Before You Sign)
A pre-offer red flags checklist for fix and flip operators — structural, mechanical, legal, market, and financing red flags that should trigger a renegotiation or a walk. Built from the 25-point Kill List DealIntel runs on every property.
Read →
Risk · Jun 1, 2026 · 10 min read
10 Reasons Fix and Flips Lose Money (Ranked by How Often We See Them)
Most failed flips do not fail for exotic reasons. They fail for the same ten reasons, in roughly the same order, every cycle. Here is the ranked list — and the institutional discipline that prevents each one.
Read →
Valuation · May 30, 2026 · 9 min read
Why ARV Fails (And the Methodology That Survives Bad Comps)
Most ARV failures are not market failures — they are methodology failures. Here are the six ways ARV systematically overshoots, why the mean is the wrong central tendency, and the institutional method that survives bad comp sets.
Read →
Case Studies · May 28, 2026 · 12 min read
5 Deals the DealIntel Kill List Would Reject (Illustrative Composites)
Five illustrative composite deals generated from the DealIntel underwriting model — each one with attractive spreadsheet numbers and a Pass verdict. Built to show exactly how the kill list catches what the spreadsheet does not.
Read →
Execution · May 26, 2026 · 10 min read
The True Cost of Renovation Delays (Why a 6-Week Slip Eats $14k)
Every fix and flip operator underestimates the cost of delay. Carry, opportunity cost, comp slippage, and seasonal listing pressure compound — and a 'small' 6-week slip on a $400k flip routinely costs $12–18k. Here is the full math.
Read →
Structural · May 24, 2026 · 10 min read
Foundation Problems That Kill Profit (How to Spot Them Before You Sign)
Foundation problems are the single most expensive surprise in fix and flip. A walkthrough that catches the right five signs avoids $30–80k of unbudgeted scope. The five signs, the diagnostic tools, and the institutional threshold for walking.
Read →
Legal & Permits · May 22, 2026 · 11 min read
Permit Risks Every Investor Misses (Open Permits, Unpermitted Work, and the Buyer Title Snag)
Open permits, unpermitted additions, and missed final inspections are the most under-priced legal risk in fix and flip. They transfer with title, they break buyer financing, and they can turn a 60-day flip into a 9-month permit cycle. Here is what to check.
Read →
Strategy · May 20, 2026 · 10 min read
The BRRRR Refi Gate: How to Pre-Validate the Cash-Out Before You Buy
The refi is the load-bearing step in BRRRR. If DSCR doesn't clear 1.0-1.25 at refi, the capital doesn't come out and the strategy collapses to a Buy-and-Hold with stuck equity. Here is the institutional pre-buy stress test that catches the failure before signing.
Read →
Tools · May 20, 2026 · 9 min read
DealIntel vs PropStream — Different Categories, Different Jobs
PropStream is a lead-generation platform. DealIntel is an underwriting platform. Operators who treat them as substitutes underuse both. Here is when to use which, and how serious operators stack them.
Read →
Inspection · May 18, 2026 · 9 min read
The Sewer Scope That Saved $18k (How to Read One Like an Underwriter)
A $350 sewer scope is the single highest-ROI diligence spend on any fix and flip. Cast iron drain failure behind a finished wall can cost $14-22k to fix. Here is how a sewer scope works, what to look for in the footage, and the four findings that should trigger a renegotiation or a walk.
Read →
Tools · May 18, 2026 · 9 min read
DealIntel vs DealCheck — Beginner Calculator vs Institutional Underwrite
DealCheck is the most popular beginner-friendly real estate calculator. DealIntel is an institutional deal-rejection platform. They are not the same product at different price points — they are different products for different operator maturity levels.
Read →
Tax · May 15, 2026 · 9 min read
1031 Exchange for Fix and Flip Investors (When It Actually Applies)
Most fix and flip operators cannot use a 1031 exchange — the IRS classifies their properties as inventory, not investment property. Here is the narrow path where 1031 does work, why BRRRR is the natural 1031 candidate, and the dealer-status trap that disqualifies most flippers.
Read →
Strategy · May 15, 2026 · 9 min read
BRRRR vs Fix and Flip in 2026: Which Strategy Wins (Worked Numbers)
BRRRR and Fix and Flip both start with a distressed acquisition and a rehab budget — but they diverge on capital efficiency, tax, and risk. A worked side-by-side comparison with 2026 numbers, so you can pick the right strategy per property.
Read →
Financing · May 14, 2026 · 8 min read
The True Cost of a Hard Money Loan (Hidden Fees Worked Example)
Hard money lenders quote rates around 10–13% — but the all-in cost of capital is higher once points, junk fees, prepayment penalties, and per-diem are layered in. Here's how to compute the true cost on any hard money loan, with a worked example showing where the marketed rate diverges from reality.
Read →
Inspection · May 13, 2026 · 8 min read
HVAC Age Math: When to Replace, When to Negotiate, When to Walk
Furnace and AC remaining life is one of the most predictable numbers in fix and flip — and one of the most ignored. Here is the institutional age math, the four red flags that drive replacement decisions, and the regulatory deadlines (R-22, SEER 2) most operators do not know about.
Read →
Acquisition · May 12, 2026 · 12 min read
How to Find Off-Market Fix and Flip Deals (12 Methods Ranked by ROI)
On-market MLS deals are picked over by every flipper in the metro. The deals with real margin are off-market. 12 methods to source them, ranked by typical return on operator time and capital — from direct mail to driving for dollars to probate filings.
Read →
Valuation · May 11, 2026 · 7 min read
How to Calculate ARV (After Repair Value) for a Fix and Flip
Step-by-step method to compute ARV for a fix and flip — selecting the right comparable sales, parity adjustments, confidence weighting, and how to avoid the most common ARV mistakes.
Read →
Strategy · May 10, 2026 · 11 min read
ADU Cost-Yield Math: When the Numbers Actually Work
ADUs are pitched as universal value-adds. The math is more selective. $140k all-in cost vs $1,950/month rent can pencil as a 12% yield or a 4% yield depending on how you account for cost, vacancy, and exit value. Here is the institutional underwrite.
Read →
Financing · May 9, 2026 · 8 min read
Hard Money vs DSCR Loan: Which Wins for a BRRRR Deal?
Side-by-side analysis of hard money and DSCR financing for the BRRRR strategy — when each makes sense, true cost-of-capital math, and the rate-shock failure mode most underwrites miss.
Read →
Tax · May 8, 2026 · 10 min read
Depreciation Recapture on a BRRRR Exit (The Tax Surprise at Year 7)
You bought a BRRRR, depreciated it for 7 years, sold cash-out. The IRS now wants 25% of your accumulated depreciation back as recapture, plus capital gains on the appreciation. Most operators never model this. Here is the math.
Read →
Risk · May 6, 2026 · 9 min read
10 Deal Killers Every Fix and Flip Investor Should Walk Away From
The ten highest-severity red flags from DealIntel's 25-point Kill List — the ones that, on their own, justify passing on a deal regardless of how attractive the headline numbers look.
Read →
Inspection · May 4, 2026 · 8 min read
Reading an Electrical Panel Like an Underwriter (90-Second Walkthrough Test)
The first thing an experienced operator does on a walkthrough is open the electrical panel. Amperage, manufacturer, age, and branch wiring tell you whether the rehab budget needs another $5-15k before you sign. Here is the 90-second institutional read.
Read →
Strategy · May 1, 2026 · 9 min read
Addition vs Fix and Flip: The Profit-Per-Sqft Threshold
When does adding 400 square feet beat just flipping? The marginal cost-per-added-sqft has to clear the marginal $/sqft of the comp set by 35 percent or more. Below that threshold, the addition is busy work with no margin. Here is the math.
Read →
Tax · Apr 28, 2026 · 9 min read
Cost Segregation on a Rental: The Year-One Tax Lift That Pays for the Study
A $7,500 cost segregation study on a $400k rental can accelerate $25-50k of depreciation into year one. The math on when it pencils, what gets carved out, and the recapture trap nobody mentions.
Read →
Inspection · Apr 25, 2026 · 8 min read
Roof Remaining Life: The 90-Second Walkthrough Test (Six Tells)
Roof replacement on a typical fix and flip runs $12-25k. Standing in the front yard for 90 seconds with the right six tells, an operator can estimate remaining roof life to within 3 years. Here is the institutional read.
Read →
Strategy · Apr 22, 2026 · 10 min read
Multi-Unit Conversion: The Cap Rate vs Comp $/Sqft Decision
Converting an SFR into a duplex or triplex changes the math entirely. SFRs sell on comp $/sqft. Multi-units sell on cap rate. Here is how to underwrite a 1-to-2 conversion, when income approach beats sales comparison, and the zoning gate that kills most conversions before they start.
Read →
Tax · Apr 18, 2026 · 10 min read
Dealer Status vs Investor: The Tax Line That Costs Flippers Tens of Thousands
Same $80k profit on a flip. Investor pays $12k tax. Dealer pays $30k. The line between them is unclear and the IRS makes the call retrospectively. Here is how dealer status is determined, why most flippers fail the test, and the structural moves that can change the outcome.
Read →