Why Renovation Cushion Can Make or Break Your Fix-and-Flip Deal
Every investor has run into a renovation that goes sideways. A wall opens up and there’s rot behind it. A contractor finds outdated wiring that needs replacing. The HVAC dies halfway through the project. Or the city decides your permit needs “additional review,” which is always code for “this is going to take longer than you planned.”
The truth is simple: the numbers you start with are rarely the numbers you finish with. And the investors who survive — and actually make money consistently — are the ones who build a renovation cushion into every deal.
A cushion isn’t about being overly cautious. It’s about acknowledging the reality of construction. Materials change in price. Labor availability changes week to week. Some problems only show themselves once you start demo. You can’t guess your way out of those surprises. You have to plan for them before they show up.
Too many newer investors pencil out their flip with perfect numbers: perfect timelines, perfect materials cost, perfect resale, perfect everything. That looks great on a spreadsheet but it doesn’t survive the real world. If your deal only works when everything goes exactly right, then the deal never truly worked in the first place.
A renovation cushion gives you breathing room. It keeps you from panicking when something unexpected hits. It lets you stay in control instead of being forced to cut corners or rush decisions. Most experienced investors automatically add 10–20% to their rehab estimate, depending on the property and age of the home. Older houses usually get more cushion because they hide more surprises. Newer homes with cosmetic flips can sometimes get by with less. But the rule stays the same: give yourself room.
A cushion also helps with speed. When you’re not scrambling to solve budget problems, you can move faster. You can approve contractor changes without slowing down the whole project. You can keep momentum instead of stalling out while you figure out where extra money will come from. Investors lose more profit from delays than from almost anything else.
BrightBridge Realty Capital works closely with investors who flip regularly, and we see the same pattern every time: the investors who build cushion into their deals stay calm, finish projects faster, and keep profits steadier. They understand that the renovation is where the uncertainty lives, and they plan for it up front instead of reacting to it at the worst possible moment.
A fix-and-flip deal isn’t just about buying right and selling high. It’s about managing the middle. That’s where your plan gets tested and where your money can disappear if you’re not prepared. Renovation cushion isn’t just a safety measure — it’s part of what keeps your deals alive when the property doesn’t cooperate.
