@Ricky Knack I see from your profile description that you are a flipper/rehabber. Are you doing buy and hold investments or strictly flipping for resale? Speaking for myself, I mostly do rehabs that I buy and hold. 5 years ago, I was looking for at least 10%. Now, in the Nashville market, I look for at least 7%. The market here is pretty inundated, but there are still deals to be had. I've always been more interested in building equity and earning passive income vs. flipping to sell, so I can't really speak to the other side. I have clients who rehab and flip and they usually look for at least $100K on the upside--they deal w/higher-end flips.
@Ricky Knack I am just starting out on the flipping side of the business but personally I have a goal of trying to net 100K per project, considering the money invest in LA and time (6-9 months because im adding sq ft to smaller, older homes).
If it is a quick 30-60 rehab that sells within 3-4 months I wouldn't mind less.
@Ricky Knack I see from your profile description that you are a flipper/rehabber. Are you doing buy and hold investments or strictly flipping for resale? Speaking for myself, I mostly do rehabs that I buy and hold. 5 years ago, I was looking for at least 10%. Now, in the Nashville market, I look for at least 7%. The market here is pretty inundated, but there are still deals to be had. I've always been more interested in building equity and earning passive income vs. flipping to sell, so I can't really speak to the other side. I have clients who rehab and flip and they usually look for at least $100K on the upside--they deal w/higher-end flips.
@Deborah Vahle my plan is to resell at this point, eventually buy and hold. My threshold for profit is if I can go work at my job and make the same or more money in that time frame, then it’s not really worth it. The problem is having that number and getting the deal. Trying to tweak the rehab costs, the holding costs really isn’t an option. Ultimately, I suppose it just matters what I can accept, but trying to more methodical about it
@Ricky Knack Yeah it really comes down to your own risk tolerance and goals. My advice to clients wanting to do a rehab and flip or even a rehab and rent is that they need to have at least 6 months of carrying costs available in addition to any rehab costs and contingency funds. It's no fun to run out of money at the end of a rehab when those final touches-the things the buyer or renter sees-are what really make the difference.