A look at the south florida flip market/competition

[Stuart M.]

I was looking at comps for a property and stumbled upon a flip.  Same neighborhood, same house.

The other house was bought for 145k, 1248sqft single story on slab 3/2 with carport.  Installed all new tile throughout, remodel 2 bathrooms and a kitchen completely (new tile, tub, shower, appliances, cabinets, counters, etc) and new Dade impact windows (I count 12) and impact doors (3) and a new central AC unit.

Sold for 208k.

Say they accepted 20% as their margin, that means they did 2 new bathrooms and a new kitchen (appliances/granite) and all new floors and all new trim and all new paint (interior/exterior) and all new windows and doors and a new central AC unit and clean up exterior and permits and demo for 21k.  After 6% min sales cost, profit would be 28k on 166k invested, 5 months from close to close (2 months was waiting for offer.)

Seem legit?  Someone tell me how to remodel a house for 21k.  Or are we taking 10% return on our money? Where are the lenders accepting those numbers?

If you're aiming for 75% of ARV, that means the remodel must cost 11k. Considering they BOUGHT it for 70% of ARV.

That's the competition.

Oh, and the house I was looking at, they want 165k. Before all of the same remodeling.