What is a realistic return on a flip in Los Angeles?
My wife and I live in Los Angeles and are thinking about buying a property to flip. We are looking in the San Fernando Valley and home purchase price of about 500-600k. What would be an ideal ROR on a pretty straight forward flip(new flooring, bathroom and kitchen remodel)?
Most Popular Reply
Greg Dickerson
#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
- 4,416
- Votes |
- 4,756
- Posts
Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
It’s really up to you. I’d like to see a 25 to 30% margin on flips but can go a little lower for a short term retail flip like this. It really boils down to how much cash you are putting into the deal and what kind of return you’re looking for. Your return is based on the amount of money you put in the deal not the total cost including financing.