What are your criteria for your flips?

[Lukas Getter]

What area are you investing in?

Do you look for a certain percent return or a flat amount?

What is your main source of leads?

How much do usually budget to spend for rehab?

What type of houses/buildings are you focusing on?

And as the title says, what are your criteria?

Sorry for all the questions!

[Ryan Blake]

@Lukas Getter

What area are you investing in?

I invest in my backyard, which is Tarrant County (Fort Worth).

Do you look for a certain percent return or a flat amount?

I look for 12% of ARV (most flippers do not take this approach) and I have a floor of $20k that I won't go below. Too many variables can go wrong and I have found using these numbers helps ensure a good and successful flip even if something big and unexpected comes up, which almost always does.

What is your main source of leads?

I send about 250 direct mail letters/postcards to pre-foreclosures every week. I tend to get on to two decent leads a week.

How much do usually budget to spend for rehab?

It will all depend on the home and condition. A rule of thumb I use for the Texas market is $14/sq ft to get it rent ready or low end flip, $18 for a medium flip, and $23 for a higher end flip. This does not include HVAC, roof, plumbing, foundation, and electrical.

What type of houses/buildings are you focusing on?

I only flip SFR right now.

And as the title says, what are your criteria?

I typically look for 3 bed/2 bath - 5 bed/3 bath. I will also entertain a 2/2 with at least 1,300 sq ft because it should be easy to add in a third bedroom.

Big takeaway and questions you should answer to continue your journey:

Why do you want to flip? It is a very active job that takes a decent amount of work and time.

What areas are you able to afford (for flipping you really should be working in or around the city you live in to start out)? What areas are selling well? Where is the "path of progress" or where is money being spent and neighborhoods being changed?

Once you figure those two things out you can start looking for deals. It is okay to get started without knowing the entire process. If you have a good deal, you will be able to get the info you need as you continue to progress in the process.