6x3 - Flip or Flop

Tarek and Christina are contacted by their friend and fellow investor, Pete. He's already purchased a home in Anaheim, California and wants to bring Tarek and Christina in on what should be a quick flip for a modest profit. But as renovation begins, Pete's budget estimate goes out the window and this is starting to look less and less like a good buy. Can the trio save their investment on this narrow margin flip?