Rehab and Flip Average Speed?

Question

Hello all. What is your fastest, slowest, and average time on your rehab and flip projects from contract to buy to close on the sale?

Michael Noto · Answer

@Jason Krawitz The fastest we have ever done is 45 days, the longest 7 months, and the average is 5-6 months. We always underwrite every deal for a 9 month hold and if the numbers work at 9 months we pull the trigger on an offer and go from there.

Michael Noto · Answer

@Jason Krawitz I should also mention that the majority of our flips are 2-4 unit multi family which take longer to rehab in our experience than a single family. Multiple kitchens, baths, HVAC systems, etc...

If you are flipping majority single families the timeframes may be a little less than what I outlined in my last post.

Jason Krawitz · Answer

Thank you everyone! Those answers may be obvious to you but they are helpful to me as I build a business plan.

Jennifer Rysdam · Answer

Mine vary with every property. It even depends on the time of the year and how the weather is. Right now I'm doing nothing today because there's a snowstorm and I can't get the 15 miles down the highway to get there. Every property has so many different things to do in it. Some are easy and some are complete gut jobs.

David Robertson · Answer

On a 3 bedroom, 2 bathroom (approximately 1,500 to 2,000sf) that needs a full rehab with new kitchen, new bathrooms, roofing, windows, doors, interior finishes (no extensive floor plan changes or MEP work) we average about 2 to 3 months for the rehab.  Once listed, in a hot market we may get an offer in the first week or two and then it generally takes 30 to 45 days to close.

In total, a good average from purchase to sale is about 4 to 6 months.

Uriah D. · Answer

@Jason Krawitz

As Michael mentioned it’s definitely different for multi. For single family we have a 4 month turnaround usually. Some are easier and it only takes 6 weeks, but if we get into massive rehab/additions then 10-12 months isn’t out of the question. I would also mention that when we were only doing 1-2 at a time our speed was faster. When we have 10 under construction the speed slows down because things get missed. We could hire another Project Manager, but we haven’t found the right person yet.

Rehab and Flip Average Speed?

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