Fix and flip average profit range

[Heather Thuli]

How much of a profit do fix and flippers tend to want?

[Jerryll Noorden]

Quote from @Ezra Henderson:

As much as possible :). Really though it depends on the price of the house I'm flipping… I would be okay with a $25k net profit when flipping a $125k house, but $25k would be a really small profit if I was flipping a $750k house. I know a lot of investors that shoot for 15% of the ARV.

 It is more than just the price of the house my man.

It is the amount of risk, location, (no matter how amazing the house or how easy the flip, if the house is next to a loud bar, you are not going to be able to sell it again, and that is part of the amount you ask for it, and thus profits), it is about time to flip, time to market, time to sell.

If you are only looking at the price of the house, and that justifies a $40K  profit flip... but you took 1 year to flip it, your monthly "salary" was $40K/12, which is not nearly enough. It is about throughput too.

If the house only needs a good cleaning, I am not going to make an offer on the house that warrants a $60K profit. It also needs to be fair to the home owner.

People often only are looking at 1 dimension, single flip, single case... it is about how many flips can you get done and have sold and your profits depend on that as well.

Our busines model is "make minimum profits with maximum dealflow".. vs only looking at one house per case and determine the profits from that.

And there you have it! Think about the company itself. Your business. Not "your flip". What and how do you need to behave so your company will make constant reliable profits. Everything I said above boils down to that.