Hello all, I am just having trouble how a newbie like myself can figure out monthly cost when flipping a house. For example, I am living in NYC and I plan on flipping in Philly, PA. How do I determine the monthly cost in terms of insurance, gas, water, sewer, etc.. I have no idea what to do/where to start.
Im in Pittsburgh, not philly, but i cant imagine it would be too much different.
For rough monthly estimates i use insurance 50, water/sewer 50, electric 50, gas 50. I usually also figure another 50 for a monitored alarm system so it doesn't get busted up. Once you have a specific place in mind you can contact actual utilities to see what bills run there and an insurance broker for a real quote...
thank you for the tip. I will use your rough estimates for now. How would I go about contacting these various utilitiy companies? I do not know what company runs what in philly area.
Welcome! There are a lot of free resources here on BP to help you on your way with your Real Estate Career.
The first on is BP Ultimate Beginner's Guide to Real Estate Investing
Then there is How to Flip Houses
I definitely recommend you invest in J Scott's Book on Flipping and Rehab costs
Then there are the podcasts and the blogs and under the "learn" tab at the top menu is filled with all the information you need.
You really just need to take the time and read all the information and educate yourself before you dive in. REI is such a huge risk, especially flipping.
As for your question. You will know these answers once you understand how to analyze a property. However, once you find a good deal and have it under contract to purchase, you can find those answers by calling the local utilities and ask them what is the average monthly bill for the address. As for the insurance, you will need to call an agent and get rates on a VACANT property.
Hope this helps!
Philadelphia gas works, PECO, and the city does the water.
Thank you for the help.
@Rick C. What type of insurance is that? I'm paying more like $100/mnth for my rental properties in Philly, but don't know what it costs to insure a house that's being renovated for a flip. I've actually been wondering that myself.
I go through a broker. Insurance policies on SFH have been costing around 600-650/year. I pay about 800/ year on a duplex. Vacancy policies cost about the same , but coverage is much more limited.
Maybe Pittsburgh is cheaper??
@nacy larcomThe quotes I recently got for my current flip is between $1,000 - $1,300 per [email protected] devito The utility companies for Philadelphia are Philadelphia gas works, PECO, and Philadelphia Water [email protected] crabtreeThose are good estimates but I would double the gas estimate to $150 -$200 during the winter months.Philadelphia Gas Works are crooks!!!!
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