Homes with ARV's less than $100,000

[Matt B.]

We are in a rural, Midwest market where a $300,000 home is expensive. The homes we typically do, sell for $130k-$250k. They seem to be our bread and butter, where we can do a quality rehab and still make a profit.

We would like to increase our volume and we are trying to figure out a way to make something, with the older 2-3 bedroom bungalows, we have around the area. Does anyone do anything with these homes and how do you manage to make a profit, with the margins being so thin? Most usually need some sort of serious rehab and you can quickly put $40-50k in one. The less you pay for one the more you have to put into it. Just seeing if anyone has managed to flip these homes, on a regular basis and still make a profit?