Expert Home Flippers: How We Calculate a Flipping Budget
When embarking upon a new home flipping venture, we make a concerted effort to understand the variables surrounding the home early on. Which areas of the home require renovations? What is the timeline of the project? And, most importantly, how much will financing these renovations cost? Through years of time-tested success in the home flipping game, we have developed a sophisticated (yet effective) method of calculating flipping costs.
Determining the After Repair Value
Before setting a repair budget, our priority is determining the after repair value of the home. The ARV dictates the potential value that the home will hold in the community after the renovation process.
Examining the selling prices of comparable homes that have recently sold is the most accurate way to determine the ARV. Not only do these figures give a strong representation of our home's ARV, but they also demonstrate that there is a market for comparable homes in the area.
Evaluating the home in terms of square footage is another way to calculate the ARV.
With years of experience in the Long Island market, we have also learned to incorporate other aspects of the home- including bedrooms, bathrooms, and unique features.
Determining Repair Costs
Having renovated many Long Island homes throughout the years, our flipping team has learned to take several factors into account. First, the initial state of the home helps us to determine the effort that complete renovation will require. Secondly, we also consider the standards of other homes in the surrounding area. By taking these factors into account, we can better understand the necessary renovations.
We have in-house contractors that handle all aspects of the renovation process, lowering costs and ensuring quality work:
- Kitchen renovations
- Plumbing repairs
- Foundation strengthening/replacement
- Electrical work
- Finishing
- Any other necessary projects
Our project managers keep all of these tasks on a manageable timeline, keeping each home profitable. With a unified team, the renovation process is simple, effective and yields a high ROI each time.
Financing Costs
As an established and successful home flipping company, we work with private money lenders who are seeking a quick, reliable and profitable project.
These financing costs will be entirely worth the investment with a carefully selected property and the right renovations.
Calculating Home Flipping Carrying Costs
Renovation projects may be the most obvious home flipping costs, but financing the project can also take a toll. Costs such as home insurance, electrical bills and more can add up. That’s why our project managers work diligently to keep these home flipping projects on a structured timeline.
Realtor Fees
After completing renovations, selling the home is the final step in our process. We consistently work with a team of expert realtors, with a detailed understanding of the Long Island housing market’s nuances. This expertise helps us to sell each home quickly, and earn high profits.
The Long Island Home Flipping Experts
At Atlantic Shores Home Buyers, we tackle every home flipping project with a high ROI in mind. By taking into account all of these unique factors, we maximize our profits for each home flipping project. Contact us to learn about upcoming projects, and how you can earn a high return with ease.