Flipping: Average VS Luxury Homes

[Ryan Prokopetz]

I'm currently Flipping average priced homes (350-400k) in Canada BC. I've noticed there's a lot of million dollar homes on/near the lake that need some substantial renovations. Anyone have experience dealing with higher end flips? Would love to hear your feedback.

Thanks,

Ryan.

[Will Barnard]

I progressed in this very same way and have had some great successes and a few big losses. Moving up the money ladder to these high priced properties brings with it some potential dangers and risks and in addition, requires a very experienced investor with a highly qualified team to pull off a profit worth the risks.

For most experienced investors, flipping a $400k house is pretty basic and does not take a whole lot of design experience. However, with luxury market homes, design, ammenities, and an eye for resale risk problems is crucial.

As with any flip, time is your enemy and in this strategy, that is more true than ever.

Selling the finished product typically takes much longer than the standard homes so expect longer hold times. Rehabs are usually hundreds of thousands rather than $20k-$50k so expect longer hold times for that too. Most importantly, your spread on a percentage basis needs to be much greater than with the average priced homes.