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Rainmaker
2,545,234
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Each person has their own formula that calculates risk, exposure, time and effort and then puts a percentage on it. Even brand new builders after all that is said and done walk away with 20-35% highest and best case scenarios

Dec 02, 2015 06:10 AM
Rainmaker
1,307,074
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

There are to many variables that come into play(paying cash or borrowing, paying or doing the work yourself).

Personally I would like 20% and have it rehabbed in three months. Here most homes would be in the $138,900 range after rehab/

Dec 02, 2015 04:03 AM
Rainmaker
798,760
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

The answer is actually a question: what is the client's target yield?

Dec 02, 2015 03:07 AM
Ambassador
2,758,931
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

Most of the one's I know look to average 20-25%

Dec 02, 2015 06:04 PM
Rainmaker
5,765,634
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Jack Gerbehy has provided a good answer for you.

 

Dec 02, 2015 05:44 AM
Rainer
56,989
Jack Gerbehy
Egg Harbor Township, NJ

20%-30%...  if the reno takes more then 3 - 4 month the ROI% would need to be higher

Dec 02, 2015 04:22 AM
Rainmaker
1,076,301
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Short term in your area is the anticipated home value - cost - improvement.

May be a reo property fix it up and sell what you can get. I do not envision much profit.

In rapid appreciation area like SF Bay area there is still some money to be made but the amount of gain often negates the effort put in.  

These two areas can result in a wash. Best case is hit and miss.

Dec 02, 2015 03:26 AM
Ambassador
4,645,700
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

If I cant project 20% of more it is not worth the risk to me.

 

Dec 03, 2015 01:57 AM
Rainmaker
2,326,156
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Christopher. I always use 20% of the listing price as my goal for the profit.

Dec 02, 2015 05:21 PM
Rainmaker
711,728
Chuck Willman UtahHomes.me
Utah Homes - Alpine, UT
Utah Homes

It depends on volume. I know investors who were willing to make as little as 5k on a flip and 2k on a wholesale. Of course these would be for short term and high volume deals.

Dec 02, 2015 11:40 AM
Rainmaker
2,999,855
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Christopher Boardman This is very good question.

Dec 02, 2015 09:51 AM
Rainmaker
1,157,329
FN LN
Toronto, ON

There is no one answer.  It depends on the requirements of the investor.

Dec 02, 2015 07:32 AM
Rainer
5,823
Christopher Boardman
Leagan Realty / CRB Realty - Phoenix, AZ
Commercial & Residential Real Estate Broker

 I'm asking the question from the perspective of a new investor.  Let's hear your fix and flip pitch!

Dec 02, 2015 05:40 AM
Rainmaker
4,798,469
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I would think this would depend on what return one wants to achieve.

Dec 02, 2015 04:24 AM