A real estate flip with a $115,000 renovation and a projected $43,000 profit is too risky; a $20,000-$30,000 budget overrun would reduce the profit to $10,000-$15,000.
"If I'm risking 115 in the renovation and only making 43, that's a little too thin for me because a $115,000 renovation says there's a whole lot of work to be done. What if I missed something? that needs to be done. What if I underbudgeted by 20, 30 grand? Well, now my profit goes from 40 down to like 10 to 15."
