flip rehabs/returns - how do i compete?
i am having trouble competing with other flippers. i try to do things the right way (pull permits) & use contractors/hvac/plumbing/electricians who, i feel, give me the best bang for the buck. and we all know the cost of things, and labor, have risen dramatically lately.
i pay cash for my homes and hit the sales price i anticipated beforehand.
the problem i am having is getting my rehab numbers in line. i feel other investors are doing rentals or doing some/all the work themselves and/or not pulling permits.
i should also mention, i do not need to flip. i can live off the returns i get in my bond/stock portfolio (w/ a lot less taxes paid). however, i like to flip 1x/year to keep me from getting bored and get that satisfaction from "working" (i retired 4 years ago).
and no, i am not interested in doing rentals. :)
Hi @Scott Williamson,
Permits depends on your location. Keep working with your local city officials to pull your permit.
Wish well!
Hamlet
Quote from @Ronald Ty:
i am having trouble competing with other flippers. i try to do things the right way (pull permits) & use contractors/hvac/plumbing/electricians who, i feel, give me the best bang for the buck. and we all know the cost of things, and labor, have risen dramatically lately.
i pay cash for my homes and hit the sales price i anticipated beforehand.
the problem i am having is getting my rehab numbers in line. i feel other investors are doing rentals or doing some/all the work themselves and/or not pulling permits.
i should also mention, i do not need to flip. i can live off the returns i get in my bond/stock portfolio (w/ a lot less taxes paid). however, i like to flip 1x/year to keep me from getting bored and get that satisfaction from "working" (i retired 4 years ago).
and no, i am not interested in doing rentals. :)
Scott,
Competition is everywhere. You have to know the market and the numbers. Try to get off market properties and do the numbers right. I am doing flipping in New York for last 7 years. I build my own crew for rehab. It is very hard at first and second or even third time. you will get a hang of it. Hang in there. You will make it. Oh, pulling permit is also depends on the township. Some reno need permit and some dont need it. Contact your township officials to find out.
Good Luck
Quote from @Jose Jacob:Thx! The advantage of a really tight market is if you find a deal, it will be easier to sell (sellers market). 2008 plus, there were plenty of deals but very few buyers. The other issue with 2008 was the values were going down. So you'd buy a home thinking the arv is 200k & when you get ready to sell, it was then worth 190k. So flippers kept turning em into rentals (which, looking back now was a wise move).
Quote from @Ronald Ty:
i am having trouble competing with other flippers. i try to do things the right way (pull permits) & use contractors/hvac/plumbing/electricians who, i feel, give me the best bang for the buck. and we all know the cost of things, and labor, have risen dramatically lately.
i pay cash for my homes and hit the sales price i anticipated beforehand.
the problem i am having is getting my rehab numbers in line. i feel other investors are doing rentals or doing some/all the work themselves and/or not pulling permits.
i should also mention, i do not need to flip. i can live off the returns i get in my bond/stock portfolio (w/ a lot less taxes paid). however, i like to flip 1x/year to keep me from getting bored and get that satisfaction from "working" (i retired 4 years ago).
and no, i am not interested in doing rentals. :)
Scott,
Competition is everywhere. You have to know the market and the numbers. Try to get off market properties and do the numbers right. I am doing flipping in New York for last 7 years. I build my own crew for rehab. It is very hard at first and second or even third time. you will get a hang of it. Hang in there. You will make it. Oh, pulling permit is also depends on the township. Some reno need permit and some dont need it. Contact your township officials to find out.
Good Luck
I use the same crew. Once in a while, I will change. And I check on their prices too.
Good news, I think this home is worth 470k now. We will see when it goes up for sale in 2 months. So maybe a 10% return on my $.
Drywall is done. Time to level the wood floors and tile starts Monday.