The most I've made on one flip is $25K. I flipped a few houses in Louisville KY before getting into rental property and no longer do retail flips. Here are the details:
Purchase price: $125,000 Rehab cost: $50,000 Sale price: $220,000 Closing costs/commissions: $20,000 Net: $25,000 Purchase to sold: 3 months Personal funds invested: $30,000 ROI: 83%
The dollar amount isn't as sexy as what you see on all the HGTV shows, but everything is cheaper in the midwest...this is probably equivalent of a $75K+ profit in one of the hot west coast markets :)
The most I've made on one flip is $25K. I flipped a few houses in Louisville KY before getting into rental property and no longer do retail flips. Here are the details:
Purchase price: $125,000 Rehab cost: $50,000 Sale price: $220,000 Closing costs/commissions: $20,000 Net: $25,000 Purchase to sold: 3 months Personal funds invested: $30,000 ROI: 83%
The dollar amount isn't as sexy as what you see on all the HGTV shows, but everything is cheaper in the midwest...this is probably equivalent of a $75K+ profit in one of the hot west coast markets :)
The dollar amount isn't as sexy as what you see on all the HGTV shows, but everything is cheaper in the midwest...this is probably equivalent of a $75K+ profit in one of the hot west coast markets :)
Some of the HGTV shows are laughably BS. Have you seen how Tarek almost always exceeds his target purchase price (which is itself way higher than any prudent investor I know would use), then exceeds his rehab budget not by, say 10-20%, but often by double. Then he and wife talk about how they need to over improve the kitchen or bath or whatever in order to compensate for some big deficiency in their house vs. the competition. Since when does that tactic work in real life? Then they have the product placement display where the name of the tile, granite, etc. store is prominently shown (is the flip getting the product for free?) At the end, even though they've created some BS drama by openly worrying about the competition which has sold for way less than their target ARV while having more SF, blah, blah,blah, somehow their house nearly always sets a new market high.
The dollar amount isn't as sexy as what you see on all the HGTV shows, but everything is cheaper in the midwest...this is probably equivalent of a $75K+ profit in one of the hot west coast markets :)
Some of the HGTV shows are laughably BS. Have you seen how Tarek almost always exceeds his target purchase price (which is itself way higher than any prudent investor I know would use), then exceeds his rehab budget not by, say 10-20%, but often by double. Then he and wife talk about how they need to over improve the kitchen or bath or whatever in order to compensate for some big deficiency in their house vs. the competition. Since when does that tactic work in real life? Then they have the product placement display where the name of the tile, granite, etc. store is prominently shown (is the flip getting the product for free?) At the end, even though they've created some BS drama by openly worrying about the competition which has sold for way less than their target ARV while having more SF, blah, blah,blah, somehow their house nearly always sets a new market high.
That was the show I was thinking of actually and I agree it's laughable. Actually just watch 3-4 episodes of any show on HGTV now and it becomes clear there is a script (can't say as I blame them). The script for Tarek is pretty easy to spot:
1. Overspend on purchase 2. Miss some major repair and stress out about it 3. Overspend on rehab by a lot 4. Throw initial ARV out the window and raise the sales price enough to make up for bad decisions 5. Miraculously find a comp or two that almost supports the asking price 6. Thank God you're flipping in CA and get stuff for free because you have a TV show (AKA profit)