Rehabbing with today's building materials cost

[Leon Doucette]

Just starting out in real estate. Looking at potential properties for flips. I've spent most of my career in the construction field as a construction electrician. The price of building materials in the last year has increased as much as 300% in some cases. Would like to hear from some other real estate investors that are doing flips and how the material cost it's affecting their profits. What are you doing to recover those costs in the end? With this going on it is more important to find good deals. Just finished work on a flip for someone else. They got a really good deal on a house because the homeowner decided to gut the house and do the work himself. He got in over his head with the construction. He sold the gutted house well below market value. In this case the deal was good enough to cover the cost of the rehab. These deals are getting harder to find