How much are dc flippers making?

[Randy G.]

So I spoke with someone flipping in DC and well

I couldn’t believe the profit margins as my jaw

Dropped. Am I missing something. I don’t

Know the exact numbers but here is what I

Was told

PP 835k

Rehab 315k

Sold 1.5M

6months

Isn’t that around 200k profit give or take?

🤯🤯🤯🤯 5 of those and I’m a millionaire.

[Russell Brazil]

5 of those and you'll have  a little over $600k. Don't forget about taxes.

But the real question is, this project required having $1.2m liquid to make the flip happen. Hard money here would eat up over $100k. 

Theres also a lot of unperceived risk flipping at these price points, with ARVs being able to swing by amounts in the $100-250k range pretty easily. You have a limited amount of buyers so that $1.5m exit could have easily been $1.3m if the market softened. So you need to be able to be in a position to take a loss.