Is $10,000 enough for a flip?

Question

I am currently looking at houses to flip for my first one. I will be partnering with another investor and I was wondering if $20,000 would be enough for a minor flip? Painting, flooring, kitchen renovation, etc.

Milind Shastri · Answer

If you can itemize what you need, you'll get your material cost and then you can see if you do all the work yourself, if you just might be able to do it at that price.

Consider your complete square footage and break down the details for each item.

For example: cheap vinyl flooring on 600 sqft @ $0.89/sqft + 600 sqft underlayment @ $0.29/sqft + adhesive = ~$750

JD Martin · Answer

That is going to be really tough unless the property is already mostly done and you are doing a lot of work yourself. We hold our rentals and typically end up spending $15-35k just getting them to rent-ready condition. Most of those would need another $10-30k if I was going to flip them.

Lindsey Keller · Answer

Most of mine are around 30-50k for work like that. If you do some sweat equity, buy low end finishes, you may be able to do that, but I do that in mine already!

James Kats · Answer

Hey Nicolas.  There are several factors involved here.  First, what is the quality of the project.  If you are doing a $500,000 house, the finishes will need to be higher end and a kitchen by itself could be $20,000.  The flips I have done have been houses that I buy for $30,000 - $45,000 and I do a complete gut job on for about $70,000.  The finishes are not near as high end because the ARV from the comps don't support it.  If I was just doing the cosmetics, I could easily do it in $20,000.  Another factor is if you are including holding cost in the $20,000 or not.  That can really add up if you are not quick with the job.  Also, are you doing the work yourself or paying a contractor to do it.  I saved a lot of money starting up a contractor business, but I am not near as fast as a full-time contractor.