How much profit should you make on your first flip?

[Engelo Rumora]

I know when you first get started investing in real estate, money is always a tough situation. You never want to lose money when you're buying and flipping a house. When flipping a house you should make as much profit as you possibly can. You should be making absolutely no less than 30% profit margins from your fix and flips. If your bringing in anything less than that, it's time you rethink your investing and what you're putting into these houses.

How much profit are you making from your flips and what are guidelines to success?

[Account Closed]

I will give you an example of a current deal that is scheduled to close on Friday. I live in one of the lowest cost of housing areas of the country so my numbers will seem small to most. I have had this house for 6 months and it was purchased for 82k. With repair costs and holding costs I have right at 100k in it. The contract price is for 138k and I will have a little less than 8k in closing costs so I will make roughly 30k. My original target selling price was 140k so my minimum profit level was 28k. I barely made it this time. A few times I might dip below the 20% but not by much. I also rarely do better than 30%. No grand slams here but a lot of solid singles and doubles.