How has flipping changed for you?

[Brady Aman]

Being in the real estate world it appears to me that flipping has changed for almost everyone. The interest rates have spiked. It is much more difficult to find a house that is going to provide you with positive cash flow every month. Last but not least your ARV has been affected with what buyers can afford after you finish your flips...

How have you been able to recalibrate and reload your strategy in order to continue flipping?

Many of my buyers seem to have taken a back seat to flipping right now. Fear appears to be growing- how are you overcoming these uneasy times that leave many others stagnate and not making much progress?

[Jerry Lucker]

Quote from @Brady Aman:

Being in the real estate world it appears to me that flipping has changed for almost everyone. The interest rates have spiked. It is much more difficult to find a house that is going to provide you with positive cash flow every month. Last but not least your ARV has been affected with what buyers can afford after you finish your flips...

How have you been able to recalibrate and reload your strategy in order to continue flipping?

Many of my buyers seem to have taken a back seat to flipping right now. Fear appears to be growing- how are you overcoming these uneasy times that leave many others stagnate and not making much progress?

 Flipping for me has always been find, fix, sell for cash. I can make more money with the cash than worrying about a positive monthly cash flow. 

Flipping has never been high risk for me. I use a simple formula of 4 figures:

1) What will the home sell for after it's fixed up (ARV). Base on solid comps - what is the actual market for similar units right now?

2) What will it cost to fix up? Base on complete bids from several reliable contractors.

3) What is an acceptable profit margin for the time and money invested? A reasonably sufficient amount here is also a safety margin.

4) What I can pay for the property initially. 1 - (2+3) = 4

Has worked without fail for over 20 years for me