Success Rate for Rehab and Flip

[Bryan L.]

I've rehabbed a few houses and flipped them over the years, but I want to hear from some of the others out there.

When you do your analysis ahead of time, you expect to make a certain amount of profit. On a recent deal of mine, I went over-budget on the repairs, and the retail sale is going slow and I am lowering my asking price. So, a deal that I thought would be above average will now only be "OK". I had one deal earlier this year that was dy-no-mite (I mean that in a good was as I made a great profit - well above my average). So, fellow rehabbers, how often do you get a killer deal, how often a good deal, how often an average deal, and how often a below-average deal (and maybe, how often do you get into a deal that just wasn't worth it, or really sucked, or you actually lost money)? Or, are you just "killin'" it all the time?

[Mike Gallagher]

dan, the short answer is no. it takes experience to perform at budget. most of the guys who make a small profit, its usually early in there career. as they do more homes, they get a better feel for the actual rehab costs. even experienced investors will sometimes overlook something, but its usually pretty rare. the more homes that you do, you get a better feel as to what the home will sell for in a particular market, that just takes experience.