Texas Investors: For those of you who flip properties

[Daniel Mendez]

Good afternoon investors,

Can anyone tell or shed some light as to what is the minimum % of the ARV (excluding repairs) are flippers looking to purchase properties at in DFW or in Texas?

Thanks in advance!

[Jennifer Ryan]

Originally posted by @Daniel Mendez:

Good afternoon investors,

Can anyone tell or shed some light as to what is the minimum % of the ARV (excluding repairs) are flippers looking to purchase properties at in DFW or in Texas?

Thanks in advance!

Good Question Daniel. I'm curious if anyone actually goes by a percentage of ARV (excluding repairs). That sure would simplify things though. I personally don't.

I look at the total of my estimated costs including: closing; on both the buy & the sale, holding, rehab etc. then I determine a minimum amount I feel good about making for the amount of time I think it will take to do the rehab and resale.

I also look at the risk involved. Is it an entry level property that’ll sell in a heartbeat or, is it a niche property?

If it’s fast, I might be good with only making 10k. Typically though, I’m looking for a minimum of 20-30k. That doesn’t count the 1920’s overhaul though.

I’m sorry, I know this is absolutely useless to you but I post with the intent to educate. 

I’ve got a feeling that a version of this is the more the typical scenario for most investors.

Take care!