I am a new RE investor and am interested to know how long other investors budget to hold the property for when flipping. Is there a rule of thumb? I was thinking 6 months but have heard a year.
I use 6 months in all my financial models. It has been less but it’s also taken a full 6 months so i error on the cautious side. Also depends if you can rent it and turn a profit. If you can, your options to hold it expand.
Thank you! Exactly as I was thinking
@Austin Walker It depends upon the remodel. In Austin Texas if one needs to move walls, do additions or anything of that sort which requires permits then I would use 6 months. If its not then I would suggest 3 months but that depends upon a number of factors such as (1) days on market for that subdivision, (2) availability of crew and (3) availability of materials. There are other factors too but those are the basics. If you have the resources in place then you can crank it out in less than a month, easily, if its a typical remodel. And then you have the sales period. Don't forget about the length of time of the contract to close which is typically 30 days. In general, 3-6 months.