What determines the size of the flip

[Dominique Palmer]

My partners and I were discussing a property that we could have bought and fixed up to flip. When discussing the rehab cost one of my partners asked if we should consider a smaller flip for our first time.

That leads me to my question. What do experienced house flippers use to determine the size of the flip. If the house only needs minor repairs do you consider it small or do you determine the size of the flip based on rehab cost or even profit size. Just looking for some opinions.

For example I think the size of the flip is based on how extensive the rehab is. If you are doing exterior paint and adding flowers to the front yard is a small flip even if you make 50k profit.

One of my partners thinks that if it takes long and costs a lot that it is a big flip. So in his example he said for the same rehab that needs exterior paint amd flowers in the front yard that costs a lot more and take the diy flipper 6months to do it is a big flip.

[Account Closed]

According to the National Association of Realtors yearly report an average flip takes 6 months (you have to include the time it takes to sell and close) and has a gross profit of $65,000 (before accounting for costs) after accounting for costs the net is $15,000

I won't do a flip unless I am going to wind up with $50,000 in my pocket after all expenses.

Most people over build for the neighborhood and don't understand comps so they think they are going to sell for more than the market supports.