Hello so recently I have been thinking a lot about purchasing and flipping a house. I have my own small reno company so would be doing all the work myself along with some of my family.
My question is how do I go about starting it? I realize I would have to talk to an accountant but what is a good amount of money to have to flip a house? An example is a $300,000 house on the market basically all it needs is a facelift, maybe 30-40 thousand in renos. Is there a general rule when it comes to numbers and percentages for selling, buying etc?
Would really love to chat with someone who has done a house in the past.
I have some experience in the space, and I would be happy to help. The rule of thumb we use is either 2 major repair spends, or 1 major repair and 2 minor.
Majors would be roof, HVAC, windows, exterior, flooring, kitchen, bath, etc. Minors are obviously lesser.
That said, most flippers and landlord types have moved largely into cash. The mortgage and banking experts expect Southern Ontario outlying areas to get a 20% haircut on property values as a direct result of the economic impact of COVID, and urban areas could run a discount of as much as 30% to 35%, depending on whether we are re-started by mid-june.
Happy to discuss and help where I can!
It's all depend on how much you want to invest and how big is the house and how much work would be involve to renovate. The best thing you can do is to consult your bank consultant and based on the cash you have and the mortgage that they can give you based on your financial situation you can decide.
I had done a few houses in 2008 and around in GTA. Flip, bought renovated and hold and now they are all making positive cash flow. I had Solar contract for roof system and that is making extra 4800 per year. (A tenant on roof paying regularly without any demand - LOL)
Location, Timing, and finishes all should be RIGHT to make a profit in flipping.To sell the property fast in market you have to give something extra then other properties in surrounding market.
Current market is TOTALLY unpredictable. COVID 19, Oil prices, Over all economical impact, Immigration,Local job market, what will be the cost of raw material which was coming from China may be new policies etc, everything is in dark.
Where you get a property in 300 k?
My wife is a Realtor, I am certified Home Inspector, Foreign trained Civil Engineer, General contractor in GTA with lots of interior design and space planning experience. So yes if i see a property, numbers run automatically and can judge what to put an offer, how much room to spend, how much time it would take, what would be best closing time, when it would be back in market and what should be our targeted price. In this game EVERYTHING has to go smooth and as predicted, as the margins are thin.
I have a project in mind i am looking for specific experienced trades and investor to build "Special house" and sell for profit.
If you want to talk further First text me on 6478667869 and if possible i will return the call. Afternoon is a good time for me. I can share my experience if that helps.
Good luck Jason.
A Budget Construction LTD.
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