I’m a house flipper, but we’ve recently started using the whole-tale strategy, meaning we only clean the house and repair damage...no updates...then list below market.
I’m finding my project budget falling around $5/sf...I would never go this low if aiming to truly flip (my flip minimum is $10/sf)...but seeing as many house buyers, rental buyers, investors, etc may appreciate the cost savings (which also affords them the ability to do their own updates)...I feel it’s a valid strategy.
Just wondering if anyone else uses this and if so, is there a minimum budget you set for yourselves.
@Jesse Swagerty yes this strategy is nothing new. It’s just a retail (on market) flip. Many of us have been doing this for years including with land and commercial And multifamily as well.
They key is buying right and doing just enough to make it presentable to retail buyers without doing too much or the doing the wrong thing all together.
Every house and every market is different so there really is not a set formula. The higher the demand the less you have to do. Less demand you may have to do a little more.