Ann Arbor, MI · Member since 2016 · 40 posts · 2 votes
I was wondering if any veterans of the Single-Family residence flipping business have stats for the % of flips ending up losing money and maybe also days per flip. Do you keep detailed stats about each flip?
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
10y
Over about 100 flips that I've completed myself (not new construction and not passive investments), we've lost money on 2 deals. The average hold time from purchase close to sale close is 137 days (it's 104 days for flips completed locally -- the long-distance flips take a good bit longer).
Great read with the 10 rules to improve your sales closing success! Have you noticed any difficulties with your process with the new lending regulations?
If you're talking about the revised FHA 90-day rule, that one isn't impacting us very much -- these days, very few of our buyers are FHA.
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
Very nice conversation here. I am imagine the answer you are looking for varies based on location and the local housing market. Glad @J Scott can provide so much insight and education based on his successful experiences. Renovation costs, construction execution, and purchase are all in your control, and you can guide your own success. The market, the selling, and unforeseen construction issues are not so much in your control, and should be planned for accordingly. I work in in commercial construction management and can't wait to do a residential flip some day soon.
This is not common and was in large part due to the great price at purchase as well as my ability to piece two separate purchases together to create the estate.