Return on Investment

[Tye Glover]

Hi All,

This is my first venture in flipping properties to the point at which I am simply investigating the opportunity to see if it's right for me. I have a question I am hoping someone can help me out wit and in involves the prospects of ROI relative to the property type.

I've been reading through a number of different blog post about ROI but have not be able to gleam a definitive answer to this question.

In reviewing several post about ROI, the post were specific to an ROI for a specific property value type. I am therefore trying to see if I can develop a matrix for property value vs ROI.

I am therefore wondering if it is possible to arrive at a target ROI matrix based on home market tiers. For example if we break homes into three groups of low cost, medium cost and high cost neighborhoods where the values of the properties differ and therefore so to does the investment, could anyone suggest the bands of expected ROIs that would potentially use?

Example:

Property Value: Low ROI Medium ROI High ROI

Lower Value:                            <=10%                                >10%, <=20%                 >21%

Medium Vale:                           <=20%                                >20%, <=35%                 >35%

High Value:                               <=25%                                >25%, <=40%                 >40%

 I may be trying to overly simplify a matrix but was wondering if anyone's experience could lend any insight to this question.

Thank you for your review and consideration.