What’s the minimum profit you’ll take on a flip these days?

Question

With rates up and rehab costs eating into the margins, curious how others are adjusting. A lot of people used to be cool with $30–40K net, but now some won’t touch a deal unless it clears $50K or more.

The 70% rule is still a solid baseline, but deals that actually fit that and still leave room for profit are getting harder to find.

What’s your cutoff these days? What’s the least you’d be okay making on a flip for it to still feel worth the time and effort?

Drop your thoughts. Always good to hear how others are navigating this market.

Terri-Leigh H. · Answer

We look at deals where the spread is $50k-70k, but love when we come out $100k! Honestly, it comes down to the reward vs the effort and what we are in it for.

As we have progressed in our journey, the less hands on work we need to do which means we may be happier with slightly smaller margins.

Andy Sabisch · Answer

Honestly I hate to see posts where people draw a hard and fast line saying they would not get out of bed unless the deal generates at least $50K to $75K or more.  If you are in an area where houses start at $250K and go to more than six figures, you might be fine with making that cut off line.  In many other areas, houses that are ripe for flips are selling fixed up for under $200K.  We have worked in these areas and making $25K on a light rehab will get me out of bed any day of the week.  If I can get 4 or 5 of these in the time it takes someone to find that $75K minimum property, who is ahead in the end?  I am not at the point where I pass up a flip that will generate a profit - it keeps my trades busy and food on their table and I know when the home run passes my desk, I will have the people I need to take it across the closing table.

Sometimes hard and fast rules hold you back especially when the low hanging fruit is gone