Am I paying too much

[Felix L Perez]

Hey guys, 

So I’m on my second flip ever currently. I live in New York on Long Island and I’ve bought both of my houses in a cheaper area of Long Island in Suffolk county.  My first flip started January of last year and we made some money but I feel like we spent way too much on the rehab. the total rehab ended up being around $70k in total. 30k went to the contractor for labor and 40k went to materials. I thought that was too high and we were just inefficient in our approach so I tried to reevaluate everything for this second flip and it seems like this flip will cost close to $100k in rehab between the contractor, the materials, the new boiler and roof etc. So I’m wondering are most rehabs this expensive and that’s just the cost of doing business in New York? Or am I doing something wrong. 

Any advice would be appreciated. 

Thank you,

Felix Perez

[Chris Mignone]

@Felix L Perez It is impossible to answer your question accurately. Renovation budget depends on many factors, including size, quality of finishes, among many others. Figuring these things out before purchasing a property is extremely important to be profitable. Let me know if I can help you in any way.