Rehabbing & House Flipping

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Stephen Bennett
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Attention Nashville flippers, help me out with some info!

Stephen Bennett
Posted Oct 21 2022, 17:18

Hello all, I am a General Contractor in Raleigh, NC. The real estate market is outrageously expensive here and no dilapidated houses whatsoever. I am going to venture on where the flip game is thriving. North Carolina hold reciprocity with the state of Tennessee, so no worries there. My question is… what is the median flip property in the surrounding cities of Nashville, how much is a full renovation (roughly), and what are some reasonable terms for hard money lenders. Thank you for your input!

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Mike Klarman
  • Lender
  • New Jersey
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Mike Klarman
  • Lender
  • New Jersey
Replied Oct 24 2022, 07:54

The contractor I work with in Philly is spending 90k -100k in a full gut job.  I would think that may be 10% less where you are.  You're probably 75k - 90k, I'd think.

Lender

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Luka Milicevic
  • Real Estate Agent
  • Nashville, TN
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Luka Milicevic
  • Real Estate Agent
  • Nashville, TN
Replied Oct 24 2022, 10:03

@Stephen Bennett

Hard money: 

2-3 points. 10-15% interest. You'll get 2 points and 10% if you have worked with the lender before. If you're new/first time flipper probably 3pts and 12-15%.

Surrounding cities will be sub 400s. Depending on which city. Murfreesboro is a completely different ball game compared with say Dickson. 

Full renovations I'm getting quoted between 85-120sft. This is obviously very difficult to say depending on scope of work. The last bid I got was $181k for a 1900sft home. Included plumbing and electrical replacement. 

I did a high end cosmetic only renovation late last year/early this year and it ended up being $68/ft. Cosmetic only. 

  • Real Estate Agent Tennessee (#358883)

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Replied Nov 10 2022, 15:14

So have you made it to Nashville ? Are you flipping there?