How many houses should be rehabbing at once?

Question

When flipping houses how many should you do at once?  What I'm trying to determine is, if you've fixed a house and it is ready to be put back on the market how many should you have in the pipe line.  I have heard different thoughts, but is it practical to have 1 or more ready to go after you fix 1 and move on to the next, while still looking for the next property to buy.

Jon Holdman · Answer

That's like asking "how long is a piece of string?"  My answer would be as many as your funding, crews, and systems allow you to do.

Karen Margrave · Answer

There is no right answer on this. It depends on many factors.

• How extensive are the repairs you're doing before selling?
• Is it just cosmetic (paint, carpet, etc.) or will you be doing remodeling that requires applying for permits, etc.
• Do you live in an area where everything is accessible year round, or will weather come into play?
• What is your experience?
• Will you be doing all the work or subbing out?
• Do you have anyone that handles all your paperwork, or do you?
• How well do you handle stress?
• What can you afford?

I understand you are trying to get a basic idea, and that's understandable. But, in order to answer, it's necessary to have a little more information.

James Wise · Answer

As many as you can profitably handle.

Christopher L. · Answer

Thank you everyone for the good solid advise.  It's very appreciated and gives me something to fall back on as I move forward towards the next project.

Thanks again,

Chris

Walt Payne · Answer

It does depend on how many you can handle at once. In a lot of different ways. How many can you handle as far as holding costs? How many can you handle as far as available time? How many can you handle as far as stress? How many can you handle as far as added risk of a market shift? How many can you handle as far as spending the profits? Actual mileage may vary due to weather, market conditions, seasonal effects and unknown variables such as interest rate shifts, termites, water leaks, etc, etc, etc.

Ty Burns · Answer

I know guys here in my local market that have 7 to 8 going at a time. Just depends on how much you can handle at once.

Tyrus Shivers · Answer

@Christopher L.

For a beginner, maybe do one and then try to have another lined up afterwards. Then you can begin to do 2 or 3 at a time. If at any point it is too much, JV and partner with another rehabber.

Bryan L. · Answer

@Christopher L. - I often had 3 going at a time last year at various stages of completion.  And I have other business activities going as well.  But I've also been doing this for a while and have many, many years of project management experience.  Now, I have zero in the pipeline.  I've made a few offers lately but not been able to get anything at the price that I want.

Derek W. · Answer

You can be a calculated, well oiled machine and plan carefully to space your flips out. Then escrow may find a title problem, or a short sale takes a month longer than you planned, or...?

and suddenly you have too many houses to rehab and can't do them all at once, or no houses to rehab at all. It's really hard to perfectly space out. Earlier this year I had eight houses sitting empty because my crews couldn't get to them all. Certainly not ideal, and certainly not a well oiled machine, but we all simply do the best we can with the skills we have. In my opinion, it's better to have a house sitting than not have any houses at all.

Christopher L. · Answer

Thanks Bill, that is sound advice.  Time and holding cost are strong motivators.

How many houses should be rehabbing at once?

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