Interested to know your recent profit margins on flips.

[Barry Ratliff]

I'm interested to know what net profit percentages or actual dollars everyone else is getting given last 6 months of market changes if any.

As the market seems to be improving, shadow inventory is coming on the market, not as many foreclosures being filed and banks and homeowner sellers are seemingly being stingy on negotiations. I am seeing reduced profit margins percentages on rehabbing and reselling. I am in the heart of Texas market, Killeen Temple Waco, where avg purchase price for flip is 50k with 10-15k rehab and ARV is 75k. Given the cost to purchase, carrying cost and cost to sell along with rehab, we are only averaging 7-9k net profit. Appraisals have moved north but so has sell prices.

It seems that on foreclosures, the banks are pricing homes knowing the rehab and closing costs for us to not make much anymore. I'm also a real estate broker for 27 years and have access to the markets above to follow the trends.