Bluffton , SC · Member since 2015 · 75 posts · 9 votes
I am new to investing only experience I have is with the 4 personal homes I have bought and sold over the years. Looking to change that this year and expand into small fix and flip deals.
I am working on getting RE license and have been thinking about just trying to set a goal of 5 transactions the first year. Not looking for major rehab flips, just minor work, paint, maybe some flooring, countertops maybe a little yard work. Would hope to make $5-$10k per flip plus the commission on the properties. I know that's not ideal and doesn't leave much room for holding costs but it seems doable in my area.
Any thoughts on this strategy to start?
Wilmington, DE · Member since 2017 · 19 posts · 7 votes
9y
@Skip Gilliam if you maintain a healthy contingency for each property, work off of your contractors bid and avoid long drawn out rehabs, you should be fine. Your profit should be determined after all costs of the project, including carrying costs. Also if the market moves away from you, you do not have much room and could take a large loss.
Bluffton , SC · Member since 2015 · 75 posts · 9 votes
9y
Avg home price in my area is in the 250k range, occasionally see some under $200 that need some work.
I have cash available to purchase but I would probably feel a little more comfortable financing the first project to see how it plays out.