{"id":50407,"date":"2013-11-10T05:33:09","date_gmt":"2013-11-10T12:33:09","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=50407"},"modified":"2024-06-18T04:44:27","modified_gmt":"2024-06-18T10:44:27","slug":"2013-11-10-much-really-cost-flip-house","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2013-11-10-much-really-cost-flip-house","title":{"rendered":"How Much Does It Really Cost to Flip a House?"},"content":{"rendered":"

It actually costs you<\/strong> nothing…<\/em><\/p>\n

But that\u2019s only if you know how to flip houses with no money<\/a> using \u201cOPM\u201d\u2026but that\u2019s the subject of another post entirely.<\/p>\n

Having said that though, there is money and costs involved when flipping houses \u2013\u00a0it\u2019s just not your money<\/em><\/a>.<\/p>\n

This was a question from a new real estate investor I met at our most recent MeetUp – which we just started doing in our local market. It\u2019s great fun to talk with new real estate investors and really see exactly what\u2019s on their mind, what\u2019s holding them back, the issues they\u2019re having with their first investments – and I always walk away seeing things from a completely different perspective.<\/p>\n

Real Estate Investment Association<\/a> meetings and meetups in general are great ways to not only network and grow your house flipping team. But for me, it gives me some fresh ideas as to what to discuss here on BiggerPockets<\/a> as well!<\/p>\n

So let\u2019s get back to the question…<\/em><\/p>\n

How Much Does It Really Cost to Flip a House?<\/h2>\n

The answer here varies widely based upon the project as well as the price range of properties in your area.<\/p>\n

For me, we typically buy houses in the six-figure and under range and sell them for $200,000 \u2013 300,000. Your market may be completely different than this, either up or down.<\/p>\n

Also, depending on rehabilitation cost, the cost can vary from thousands of dollars to hundreds of thousands of dollars!<\/p>\n

Regardless of what the upfront cost is, the most important number in house flipping is After Repair Value<\/a>, otherwise known as ARV.<\/p>\n

How Much It Costs to Flip a House: Nail the ARV<\/h2>\n

To get to how much it\u2019s going to cost to flip a house, you first need to know what you can sell the property for when it\u2019s all done. Once you know this all important number, the other costs associated with the house flip will really start to come into focus much better.<\/p>\n

The best way to determine ARV<\/a> is through comparing other houses similar to yours that have sold nearby within the past six months. These types of properties are known as \u201ccomps\u201d.<\/p>\n

A real estate agent who knows that market can help you with this unless you have access to the MLS system.<\/p>\n

You can certainly try to get comps through online services, but since this number is so vitally important, it\u2019s best to enlist the help of a professional. They know the ins and outs of the market far better than you do.<\/p>\n

Heck, I\u2019ve been doing this for almost 5 years and I still use real estate agents even in markets I\u2019ve bought and sold dozens of properties!<\/em><\/p>\n

A couple of important things to keep in mind when determining ARV:<\/p>\n