Fix and Flip Deal Analysis
Full numbers of the fix and flip below - let me know what you think!
- Purchase price: $180k
- Estimated rehab cost: $90k
- Holding costs + Closing Costs: $66k
- ARV: $400k
Most Popular Reply
When flipping a property I look at the following…
Holding time - I like short term, helps maximize your RoR.
ROI - I prefer 30%+ but not easy to find in many markets. 20% is my minimum. RoR is the more important metric though which take into account your holding time
Rate of Return(RoR) - I prefer to invest in deals with 100%+
Rehab Costs / Profit - 2 is good, 1 is great, less than 1 Phenomenal
Cost/SqFt of Rehab - helps you determined minimum Profit Margin
Profit Margin - Base 10%, then add 1% per $5/sqft in rehab costs
I would recommend reading/listing to the following books. FLIP, and The Book on Flipping Houses.