In this new solo series of Burning the Ships, I’m shifting from weekly rambles to tactical deep dives and today we’re kicking off with how to underwrite a single-family fix and flip deal.

I walk through the full process step by step: from defining your goals, to calculating ARV (After Repair Value), to backing into your Max Allowable Offer. We break down the often-overlooked holding costs, closing costs, and realtor commissions that can kill your margins if you don’t account for them.

But this episode isn’t just about math, it’s about discipline. Because the hardest part of underwriting isn’t the numbers, it’s sticking to them when your emotions want the deal to work.

Whether you’re an investor or just someone looking to sharpen your mindset, this episode will give you a framework for discipline that applies far beyond real estate.

Key Talking Points of the Episode

00:00 Introduction

02:26 Mindset nugget preview: discipline is the glue to success

03:33 JJ’s Joke of the Week

05:13 Why principles of underwriting haven’t changed in decades

06:46 Step 1: Define your goal—profit target and purpose

07:50 Step 2: Force appreciation—renovating to increase value

09:20 ARV (After Repair Value): why it’s the cornerstone metric

10:23 How to calculate the MAO (Maximum Allowable Offer)

11:38 Back-of-the-napkin math formula and following the 70% rule

13:13 Understanding closing costs on front and back end

14:37 Holding costs: utilities, insurance, taxes, lawn care

17:22 Realtor commissions: 5–6% adds up fast

19:10 Why conservative underwriting creates buffer for unknowns

22:09 Running comps: Zillow, Redfin, Realtor.com, or CMAs

24:15 Why you need to get extra conservative with rural or unique properties

27:33 Rehab estimates: why you need a contractor’s expertise

31:16 Common mistakes: overestimating ARV & underestimating repairs

33:07 Full deal example: breaking down numbers on a Newport News property

38:11 Transition to mindset: discipline in underwriting

39:41 Discipline means sticking to your Max Allowable Offer

42:43 Why motivation fades but discipline sustains long-term success

44:41 How discipline builds reliability, trust, and reputation

49:21 Where can you add value today?

Quotables

“The hardest part of underwriting isn’t the math—it’s the discipline to stick to it.”

“Motivation is fleeting. Discipline is what sustains success over time.”

“If you’re not disciplined in underwriting, emotions will push you into bad deals.”

Links

608B Capital

https://608bcapital.com