Working the numbers

4 Replies

Hello,

My talent is finding good deals and rehabbing a property to sell quickly.  My questions are to the experienced flippers, (1) How do you determine fixed costs such as Ins., utilities & property taxes?, (2) How do you determine your repair costs, and (3) How do you determine holding costs?

These are items on my spread sheet to bring to my lenders to show them that it is a good deal.  

Does anybody know what the average costs are in Southern California.  Everything in this state is much higher than other states.

What I have been doing so far is estmating what I pay personally for my utilities, water, gas, property taxes, and insurance.  I also asked a few friends what they pay to compare.  The area I live in is a higher end nieghborhood than the area I am flipping in.  Is there a more efficient way I can be working the numbers?

Thank you.

Melissa

Originally posted by @Melissa W. :

Hello,

My talent is finding good deals and rehabbing a property to sell quickly.  My questions are to the experienced flippers, (1) How do you determine fixed costs such as Ins., utilities & property taxes?, (2) How do you determine your repair costs, and (3) How do you determine holding costs?

Regarding insurance- we have relationships w/ several insurance brokers that will provide us w/ numbers to get us in the ball park about the cost of insurance.  If we're moving in to a new area we start to make some calls.  

Insurance- We have relationships w/ insurance brokers & when we moved in to a new area we established new relationships.  They provided us w/ ball park numbers & we gave them the business.

Regarding utilities- We called the utility company and asked for the budget billing rates.

Property taxes can be found on the public record.

Repair costs- I recommend you do a search on repair costs on BP.

Thank you Crystal.  I was told that in California to multiply the purchase price of a property by 1.25%, and that will calculate the property taxes.  This information came from an experienced investor in the state of California.  

I will make sure to search the public records as well.  

Thank you.  I need to get this proposal in, and your answers were helpful.

Melissa

Generally true, 1.25%. zillow has property tax history by year. Faster than navigating county assessor's office. They get that from same county office too.

Thank you Bogdan! I didn't think of Zillow.  That would save time.

Melissa