Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

What is a good return for a house flip

MattReno

Inspired Forum Member
Registered
Joined
Aug 10, 2017
Messages
30
What’s the average return on a house flip? Like nothing extravagant just a usual return one would expect. Also what would be considered too low to bother? (If that’s not to subjective a question)
 

Thomas Beyer

0
REIN Member
Joined
Aug 30, 2007
Messages
13,881
All cash, or with a mortgage? What city or province? I’d say aim for a minimum 20% to 25% ROI on the cash, after all fees, holding costs, utilities, taxes, lawyers, realtors, mortgage costs, upgrade costs, repair jobs, landscaping, appraisals, engineering fees etc .. more if tough to rent with cash flow due to high price ( say Vancouver ) .. Lower if rental ie buy and hold an alternate exit strategy.
 
Last edited:

Luc12766

New Forum Member
Registered
Joined
Oct 24, 2017
Messages
3
What’s the average return on a house flip? Like nothing extravagant just a usual return one would expect. Also what would be considered too low to bother? (If that’s not to subjective a question)
Matt,
I am a bit more of a volume flipper. I aim for 10% of my purchase price in profit after all costs including financing. So on a $400k purchase, I want to make a minimum of $40k profit after everything before taxes. At lower price points, I want to make a minimum $20-25k even if the property is very cheap. This is also assuming a full cosmetic reno, not gutting to the studs or any additions.
 

Brad Redekopp

0
Registered
Joined
Feb 22, 2015
Messages
71
Matt,
I am a bit more of a volume flipper. I aim for 10% of my purchase price in profit after all costs including financing. So on a $400k purchase, I want to make a minimum of $40k profit after everything before taxes. At lower price points, I want to make a minimum $20-25k even if the property is very cheap. This is also assuming a full cosmetic reno, not gutting to the studs or any additions.

Is that subcontracted or you do the labour yourself ?


Sent from my iPhone using myREINspace
 

Matt Crowley

0
REIN Member
Joined
Dec 14, 2013
Messages
980
Why wouldn't you just build homes instead? Margins are way better and you get to (generally) work with much better trades.
 

MattReno

Inspired Forum Member
Registered
Joined
Aug 10, 2017
Messages
30
Thanks for the replies everyone. So related question, how do you structure this with the bank? Knowing you are going to flip it do you still get a loan amortized out over a long period then just buy it out when you sell or do you discuss the plan to flip with the bank and get a specific term?
 
Top Bottom