Calling all experienced rehabbers and house flippers!

[Bianca Rodrigues]

Hi All!

Looking for advise from experienced house flippers. What are some things you know now that you wish you knew before starting rehabbing/house flipping? What are some questions you wish you asked, metrics you wish you took into consideration, etc. I have two rehabs under my belt that are now STRs. I believe I found a great potential fix & flip in MA but want to make sure I'm doing my due diligence on the property (i.e. making sure I'm accurately projecting ARV, rehab costs, holdings costs, etc.) before reaching out to a hard money lender for assistance (would be first time using a hard money lender if I go this route).
 

Thank you!

[Kurt Brauner]

Being that this will be your 1st time using a HML, I would make sure that you understand the fees that are involved with closing the loan. I recently helped a newer investor underwrite a deal and she failed to adjust her numbers. She had based her numbers on paying cash but was unable to access her funds to close the loan. An 8k mistake.

On developing an ARV, I would recommend locating a highly active/experienced agent in the area of the flip and get some market conditions and comps. In my market, a flip that I recently purchased had an ARV of 320k (4 closed model matches in May/June at 320k) just 2 months ago. We are currently listed at 299k, and have 0 offers. It is important up to date market data and know how your market is trending.