Typical holding costs involved in a fix and flip in SoCal?

[David Cowan]

I just wonder what you'd all think of this deal. How would I figure out holding costs on a fix and flip? Here's the deal. I'm not considering it but figured I'd use it to do a little "homework"

The house is in Laguna Beach and has a $1.6M ARV and a sales price of $1,348,000 with $40,000 worth of repairs needed. Personally, I'd say no to this because the more "high-end" properties tend to take longer to sell and that time can really eat up your profits. I'm wondering, are there some "rough" figures I can throw into a calculation just to get a very conservative estimate? Below is the description:

Attention South Orange County Investors! Amazing opportunity in Laguna Beach. This property needs exterior paint and light interior upgrades to reach the top of the market. Solid comps justify a 1.6M exit price. This property is a great fit for a cash investor who lists their own projects. Take advantage of a motivated seller opportunity and net a great return on cash! Contact your NWA representative to schedule a private showing.

Square Ft : 2800 Year Built: 1977 Bedrooms: 4 Bathrooms: 4 Garage:

Estimated ARV $1,600,000 Est. Repair Cost: $40,000 Cash Price: $ $1,348,000

[Brandon Battle]

My new partner and I have a very specific criteria for our flips.Purchase price and rehab costs never more than $700,000,cosmetic only,no mold,no plumbing problems,no electrical problems,or removing walls and needing permits.We keep it simple and look for $50,000 profit splits in So Cal properties.Let the millionaires deal with rich homes.