Is $50K in 90 Days Worth It?

[David West]

Hi Everyone,

I'm analyzing deals to flip in Northern CA. My plan is to use the profits to build up enough revenue to invest in more rental properties. 

I'm hoping someone with experience flipping in CA can weigh in on the following scenario and let me know if it's actually worth it. After all of the fees, taxes and holding costs are paid what are you actually depositing into the bank after 90 days? If you think it's not worth it what would you do differently for a better ROI?

Here's the generic scenario:

Purchase Price: $200k

Repairs: $40k

Holding Costs: $10k

Sell Price: $300k 

On paper you made $50k, what do you really walk away with after the dust settles? 

[Russell Brazil]

Im estimating $25k profit on this, which would be appropriate for the price point in my market. We usually see $25-30k on cheap flips like this and $50k on $500k and up.