Fix n flipping dangerous?

[Francis Rusnak]

Everyone talks like fix n flipping is dangerous and you could lose your *** doing it.

Say I buy 70% below market value - repair costs. Ok, I screwed up and was 10% off on my ARV, another 10% off on my repair budget, and my holding cost doubled because I was slower than I thought I'd be. Even if all of that happens I'm borderline breaking even.

My question is, assuming you have a little bit of margin in your purchase price, how bad can it get? Sure, it would suck to hold onto a project for 8 months and not make anything, but when I hear 'risky' and 'dangerous' I think having your money chopped in half.

Correct me if I'm wrong, but if you have done a decent amount of due diligence and have enough reserves in the bank, then you're rarely going to be negative on flips and if so, nothing significant. 

[Hai Loc]

Dangerous if your arv is 70% and ARV is under $200k. Not much room to work with.
Closing costs is already 6-7% so technically your spread is 23-24%. I would aim for a lower % of 50-55. Sorry it may be hard in your market with competition but no way I can sweat out a rehab with only 50k spread to work with bc I usually drop 20k alone on kitchen baths hvac appliances and paint. Holding costs is a killer especially with private or hard money.