All Forum Posts by: Mary Eubanks

 @Mary Eubanks   Yes, you can get a second mortgage up to 95% assuming the borrower qualifies of course. 

 @Mary Eubanks   Yes, you can get a second mortgage up to 95% assuming the borrower qualifies of course. 

 Any amount that you feel good about. There's no set amount and no stranger on the internet can tell you what should work for you. 

When I was staring out, I was broke. I was STOKED to get a $10K check for a flip that took me 4 months during my spare time from my W2. Most flippers would tell you those were bad deals, but those "bad" deals gave me confidence, experience and helped me develop relationships that propelled me to take the next bigger steps and quit my day job. 

Do deals that work for you in your situation and don't worry about what other people think is a good or bad deal. 

Best of luck!

• -Look for at least 20% ROI as a good minimum goal. This covers all your costs.
• -Factor in expenses like loan interest - this may increase your target ROI.
• -Higher risk flips need a higher target, around 30% or more.
• -Set goals based on your strategy. Flipping part-time may only need 15-20% ROI. -Full-time flipping should aim for 25%+.
• -Run the numbers for each deal to maximize profitable returns within your risk comfort level.

The key is understand all the costs, and aim for a 20% ROI minimum in most cases. Let me know if you need any help number crunching!

 No right or wrong answer, personal preference. Just know your numbers, nothing else matters, 

 Sadly, I doubt that the only people who wanted to get into flipping because of HGTV were my friends wives. As far as calculating in your head, when the OP is asking a question like "What is the minimum rate of return I should be looking for to make a flip worth it?" she sure as hell isn't ready yet, much less attempting to do it with just a calculator or in her head. 

The minimum rate of return you should aim for in a house flipping venture depends on various factors, including the local market conditions, your level of experience, and the specific risks associated with the property. However, a commonly used benchmark is the 70% rule.

The 70% rule suggests that to make a flip worth it, you should aim to purchase a property for no more than 70% of the after-repair value (ARV) minus the estimated renovation costs. This leaves a margin to cover holding costs, financing expenses, and still achieve a desirable profit.

Here's the formula:

Max Purchase Price = (ARV x 0.7) - Estimated Renovation Costs

Keep in mind that this is a guideline and not a strict rule. Some investors may use different percentages based on their risk tolerance and market knowledge. Additionally, it's crucial to conduct thorough due diligence, accurately estimate renovation costs, and account for unexpected expenses.

Ultimately, the goal is to ensure that the potential profit justifies the investment, effort, and risks associated with the flip. It's advisable to consult with experienced real estate professionals and conduct detailed market research before making any investment decisions.