Flipping in Edmonton

[Cal Ewing]

Hello BP Alberta, 

I am looking at a possible rehab deal in Edmonton and was wondering if I could get some feedback from you guys as to typical returns you are seeing, and maybe what your minimum return or profit limit is that you would accept to do a deal?

I am looking at houses in the $350 to $450,000 range. Is a profit of $20,000 to $30,000 a below average, average or above average return on rehab deals you guys look at for homes in this price range?

I typically invest in the US so I really don't know what kinds of returns are average for a house flip in Alberta. 

Thanks in advance.

Cal

[Jett Rao]

Hi @Cal Ewing

What you have listed is around average. For 450k I would be looking closer to 40k profit though.

I can't say for Edmonton, but for Calgary starter homes (ARV = 370-400k) we look for 25k profit.

I think the profit margins should also grow a bit larger to to protect yourself as prices are coming down everyday albeit slowly in the starter home price range.