The Hidden Demolition Costs That Can Kill Your Real Estate Flip Before It Starts

Dorren thought she had it all figured out. The distressed property in Lakeland looked perfect on paper—purchase price of $75,000, estimated renovation budget of $45,000, and a demolition cost quote of just $8,500. Her numbers showed a healthy profit margin that would make this flip worthwhile.

Six months later, she was staring at a demolition bill that had ballooned to $28,000. What started as a simple interior gut job turned into a nightmare of asbestos removal, permit violations, and structural surprises that nearly killed her entire project.

Dorren's story isn't unique. Most real estate flippers underestimate demolition costs by 30-50%, turning profitable deals into financial disasters. The industry data tells the story: demolition costs range from $4-$17 per square foot for residential properties, but hidden expenses can easily double these estimates.

The good news? Proper planning and working with experienced demolition services can protect your investment and keep your projects on track. Let's dive into what every investor needs to know before breaking ground.

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