Is there anyone running a successful flipping business that would be willing to share their P&L statement or can provide info on what a healthy COGS vs Expenses ratio looks like? I'm searching for something to compare my own flipping business to.
It's really going to depend on the stage of the business. If you're new and doing one house at a time without employees, an office or other overhead, pretty much all costs are going to be COGS (costs directly related to your properties and renovations).
As you start to scale, your expenses will increase, as you add layers of management and other overhead costs.
But, until you start to scale, COGS will be the bulk of your costs.
Thanks @J Scott . To give you a snapshot, My business partner are in our 2nd year together, though this is my first year being full time (2/26/21 was last day at W-2 job).
To date, we have completed 4 sfh properties (purchased, rehabbed, and re-sold). Currently have 1 closing (re-sell side) in August, 2 currently under rehab, and 5 more under agreement.
I'm currently the only employee. We will be hiring our first employee (admin/coordinator) by the end of Q3. Goal of 5 employees by end of year 3.
Thanks again for your response.
Why would "Have 5 employees" be an actual business goal for you?
@Aaron McGinnis - I worded that poorly. My three year picture includes approximately 5 employees to support my revenue goal.