All Forum Posts by: Mary Eubanks

As Ethan said there's so many factors to consider. On a lower price point in aim for larger %, I've got more wiggle room on more expensive properties. Some flippers are full time & some on the side so they may different business templates. Comps are important to me for answering my own questions. I always keep in mind a phrase I was taught "normal sells"

Got it thanks!

1 Vote

Dallas, Texas

Quote from @Evan Polaski:

@Mary Eubanks, I look for $50k minimum projected profit or 20ish%, whichever is higher. But this also has to do with overall scope of work and projected timeline.

$50k min, because a missed sewer line replacement can run $30k, so regardless of scope, I need to make sure I have real buffer. And because all flips require work, and I simply value my time. 20%, because I don't want to put out $500k to only make $50k. In Cincinnati, where houses are still relatively affordable compared to coastal metros, I won't say there are a lot of properties that will hit this mark, but there are certainly some, so no need to jump at low yield properties, when I know another higher yield one will come, even if it takes several months or so.

Makes sense. Thank you!

0 Votes

Dallas, Texas

Quote from @Ethan Gidcumb:

Hey Mary! A 10% return should be the minimum that you are looking for to make a flip worth it. Depending on your market, property, amount of rehab required, and ARV, I also like to pay attention to your return in a whole number approach to make sure you see the return as worthy of your time. This is because 10% can look very different depending on your location.

I hope this helps!

It does! Thanks so much.

1 Vote

Dallas, Texas

What is the minimum rate of return I should be looking for to make a flip worth it?

3 Votes

Dallas, Texas

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $330,000
Cash invested: $120,000
Sale price: $600,000

Lakefront home. Updated entire home. Used as an STR on AirBnb and sold.

What made you interested in investing in this type of deal?

There is only so much lakefront property which continues to increase in value. People who have money are those that invest in this type of property opposed to the average buyer who can only qualify for so much.

How did you find this deal and how did you negotiate it?

On the MLS. We went into multiple offers, but came in at a full price, 20% down conventional loan and felt that was a solid offer with all the work that was needed.

How did you finance this deal?

Conventional loan 20% down.

How did you add value to the deal?

Lots of junk in the yard, cleaned it up. Took trees down for a better view of the lake. Screened in patio was redneck so fixed that up to how it should be. Completely renovated the inside of home, new appliances and turned into AirBnb. Sold as furnished. All you need is your suitcase.

What was the outcome?

Made 25% ROI

Lessons learned? Challenges?

Have your contractor go where the house is instead of trying to hire local. Wasted a lot of time on getting bids and people locally that didn't work out. In the end, had my contractor do it even though was an hour away.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just me! Happy to help anyone that needs advice or I can help find their next investment opportunity!

0 Votes

Quote from @Peter Vekselman:

if you can make a higher return by doing an AS IS deal then if you were to fix it, then 100% thats what you need to do. with rehabs comes time and most importantly uncertainty. your margins on this deal are already pretty slim.

wholesale it for sure.

Thanks so much for your input!

1 Vote

Dallas, Texas

Quote from @Account Closed:

Quote from @Mary Eubanks:

We purchased a 1600 sq ft property, $50K below appraised value, off the MLS. We were going to flip it, but quotes are coming in higher than expected, still should make a 14% ROI. However, if we were to throw it back on the market, we could easily make a 16.5% ROI. Am I missing something, or would it not make more sense to go with the path of least resistance and greater ROI by wholesaling? Thanks for your insight!

Are you including cost of sale (RE agent fees, closing, etc) and time value of money (what you could be doing with your time otherwise) and market volitility?

Yes sir, I am factoring all of that in on both scenarios. Very good point. Thanks so much for your expertise!

1 Vote

Dallas, Texas

0 Votes

Dallas, Texas

1 Vote

Dallas, Texas

Thanks you both!

0 Votes

All Forum Posts by: Mary Eubanks

Mary Eubanks has started 21 posts and replied 46 times.

Post: Rate of Return when flipping

Post: Rate of Return when flipping

Post: Rate of Return when flipping

Post: Rate of Return when flipping

Post: Buy, Flip, STR, Sold 25% ROI

Post: Flip or Wholesale?

Post: Flip or Wholesale?

Post: Flip or Wholesale?

Post: Wholesale or Flip?

Post: Property lookup for owner contact info