Expenses for doing a fix and flip

6 Replies

So when investing In a flip through a conventional loan, means that the mortgage payment is still there while the house is being renovated?

What can be done to minimize the amount of money being spent for a home while fixing it up?

Pay cash

Minimize the rehab time

Price right to get a quick sale

You could cut back on labor and do everything yourself but two things about that #1 it only saves you what you think your time is worth, #2 you need to know have experience with your hands if you want it to look half decent.

You can cut back on materials. Find your finish items on clearance. Example Supplyhouses often sell dented water heaters cheaper. You can get items that were returned because someone didn't like the way they look. I dont like to cut back on material and dont want used material either because it's a cheap way to have more headaches. 

With the conventional mortgage theres really not much you can cut back on. Are you living in it while fixing it up? If you're living there for a year fix up a room at a time. 

Originally posted by @Gibran Del Giudice :

@J Scott thanks, I’m assuming if I had the cash then I likely wouldn’t have asked this question. But thank you so much for your veteran answer.

 I should have said pay *more* cash...  The bigger your down payment, the lower your monthly principal and interest payments will be.