Flipping around Bangor,ME
My wife and I are looking to start rehabbing properties for resale. While talking with banks about financing, one told me that investors in my area are making 10-15k on average per flip. This seems like a low number for all the work that goes into a flip. Should I be seeking a different means of investing? Not trying to sound hoity-toity; I’m just feeling that at the end of the project, 10k is not going to feel like a sufficient payout for the sweat and tears.
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#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
It all depends on the price point of the house. Some people will take on a project that only makes $15k-$25 but that is not worth the risk. I will not do one unless I can make $75k or more. Anything less than that I will retail flip.
I would look at more as a ROI % number. Typically when we approve projects we like to see around 30-40% ROI.
A $100k Project should net $30-$40k
Best of luck in all your endeavors.
