Need guidance for house flipping

[Aqsa Mughees]

[Joseph Chiofalo]

Hi Aqsa, 

What location and price points are you targeting for these properties? 

[Aqsa Mughees]

Hi Joseph! I have heard Midwest is good for a house flip. My budget is less than 75k. 

[Jacob Sherman]

Let me know if you have any questions 

[Peter Mckernan]

Quote from @Aqsa Mughees:

Hi Joseph! I have heard Midwest is good for a house flip. My budget is less than 75k. 

 At that price point you can find a lot in the midwest and south. I would find a couple areas that you know or know someone in that you could pick out of a hat. Take those and start doing due diligence on and see if it's the right flip area for you. Then you can start to build your team in that area. 

[Bhargav Hirapara]

Look for properties priced at least 20-30% below market value to account for renovation costs and profit margin. Foreclosures, short sales, and off-market deals can provide these opportunities.

Target up-and-coming neighborhoods with increasing home values rather than already hot areas.

Research comparable recent sales and get an inspection to accurately estimate the after-repair value (ARV) before making an offer.

Follow the 70% rule - the purchase price plus renovations should not exceed 70% of the ARV to leave room for profits after selling costs.

Focus renovations on maximizing returns - kitchens, bathrooms, curb appeal rather than over-improving.

Hire experienced contractors and have a project manager oversee work to keep things on schedule.

Price the renovated home at or just slightly below comparable recent sales to facilitate a quick sale.

[Jose Jacob]

Quote from @Aqsa Mughees:

 Just curious, what made you choose that niche, flipping ?   I am a realtor for over 35 years and flipping for last 10.  Flipping need a good experience. Lot of things can go wrong and cud eat your capital. Not to discourage you but to equip you.  Study flipping very well before you jump in. 

[Bob Stevens]

Quote from @Aqsa Mughees:

 Is there a question? Do you have cash if so how much. You need contractors, and deals, do you have either ? I assume no. Get to your local RE meetup, 

All the best 

[Aqsa Mughees]

Quote from @Jose Jacob:

Quote from @Aqsa Mughees:

 Just curious, what made you choose that niche, flipping ?   I am a realtor for over 35 years and flipping for last 10.  Flipping need a good experience. Lot of things can go wrong and cud eat your capital. Not to discourage you but to equip you.  Study flipping very well before you jump in. 

This is exactly the kind of guidance I need being a newbie so that I can evaluate my options. That’s for bringing it up. 

[Aqsa Mughees]

Quote from @Joseph Chiofalo:

Hi Aqsa, 

What location and price points are you targeting for these properties? 

I am targeting anything under 50k. I am not sure about the exact location but have hear about Midwest being a hot location for flipping or BRRRR.

[Bob Stevens]

Quote from @Aqsa Mughees:

Hi Joseph! I have heard Midwest is good for a house flip. My budget is less than 75k. 

 It will be in terrible areas. I do all, my biz in Cleveland, you are not getting anything fully renovated for 60k, 

[Bob Stevens]

Quote from @Aqsa Mughees:

Quote from @Jose Jacob:

Quote from @Aqsa Mughees:

 Just curious, what made you choose that niche, flipping ?   I am a realtor for over 35 years and flipping for last 10.  Flipping need a good experience. Lot of things can go wrong and cud eat your capital. Not to discourage you but to equip you.  Study flipping very well before you jump in. 

This is exactly the kind of guidance I need being a newbie so that I can evaluate my options. That’s for bringing it up. 

 Hes not flipping props with a budget of 55k, His other post says 75k is my budget, soooo. 

[Bob Stevens]

Quote from @Peter Mckernan:

Quote from @Aqsa Mughees:

Hi Joseph! I have heard Midwest is good for a house flip. My budget is less than 75k. 

 At that price point you can find a lot in the midwest and south. I would find a couple areas that you know or know someone in that you could pick out of a hat. Take those and start doing due diligence on and see if it's the right flip area for you. Then you can start to build your team in that area. 

 Where in the mid-west are you getting props fully renovated for 55k that you can flip for say, 80kish?