I am very interested in hearing from investors in markets similar to mine, which is greater Boston. The standards in my area are generally high, as greater Boston is relatively affluent. Don't misunderstand me, most town have really posh and above average neighborhoods.
I am always reading that many flippers are trying to earn at lease 20k on their flips. When I read that, I immediately think they must be working in the deep South, or FL or somewhere where the median home cost is under $100k.
My belief is that if I am going to put reasonably high quality cabinets, floors, appliances and trim into homes, shouldn't my profit reflect the extra investment in materials and extra time to do the finishes?
I know the obvious answer is yes, but I'm looking for an average gross profit in markets like these.
The only reasonable comparison I should ever make is of myself to myself. It would be great to know a benchmark to use. I keep finding projects that are a little more involved but have over $100k profit in two families. I haven't managed the first flip yet as I made this move just a month ago after I was laid off.
Am I reaching too high by investing too much time in the projects with the larger time and money requirements in the beginning? Will it be easier to get capital for the quicker flips with the smaller margins until I have the reputation of a shrewd player?
I know there's a few questions here, but they are high impact questions for me. Learning where I need to be concentrating my time, is likely the most important decision I have to make right now. Thanks in advance for any wisdom you have to offer.
