Flipping houses, how much profit to expect after remodeling?

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Since my family has a lot of contacts for labor and supplies in the home remodeling department, I was wondering about the viability of flipping beat up houses after remodeling them.

Does anyone have any experience with this?

[DcifrThs]

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Since my family has a lot of contacts for labor and supplies in the home remodeling department, I was wondering about the viability of flipping beat up houses after remodeling them.

Does anyone have any experience with this?

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i wish i could give a better answer than this but:

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it depends

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Barron

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What kinds of variables does it depend on?

Suppose we buy a house for $500k, and remodel it completely -- I'm talking all walls painted, all hardwood floors, kitchen cabinets, tiles and all bathrooms with new sinks, faucets, glass showers, wall tiles, maybe even the patio.

How much can I expect the house to sell for after the work?

[hawk59]

There's really no reason to expect the house to sell for more than the purchase price + the amount of money you spend to remodel. The whole concept of fixing up and flipping houses became popular as a direct result of the real estate boom. But the money wasn't made because of the remodeling, it was made because the real estate market was increasing at a very high rate in the time it took to remodel then sell the house.

Maybe you will say that you can get a really good deal on labor because of your contacts and you can realize a profit that way which might be true, but then you'd really just be in the remodeling busines except that you'd have to put up a lot of capital upfront to buy the house and expose to yourself to a lot of risk if things don't work out.

[jaydub]

[ QUOTE ]
What kinds of variables does it depend on?

Suppose we buy a house for $500k, and remodel it completely -- I'm talking all walls painted, all hardwood floors, kitchen cabinets, tiles and all bathrooms with new sinks, faucets, glass showers, wall tiles, maybe even the patio.

How much can I expect the house to sell for after the work?

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$500K plus or minus $100K

J

[SanONeill]

I would research this a lot more with real estate professionals in the area you plan to work. Revamping the whole house will cost a lot of money and 50% of the things you do won't add value to the house in the end. Try to find the few things that will add a lot of value and just do those.

[maxtower]

Most of the money made in flipping houses is by purchasing the house at below market prices. While the RE market isn't perfectly efficient, most buyers and agents are intelligent enough to figure out how to discount a house for the work that needs to be done.

Obviously you'll get the most bang for your buck by repairing the cheapest things that make the largest visual impact, but I think most of the real money is made by working hard to find properties at below market. Flippers will then do the remodel to just sell it for top dollar.

[punkass]

2-5 years ago, ROBUSTO almost anywhere
1 year ago - ???? - huge ass risk that is not worth, unless you can find a really good deal in a nice location

[Grasshopp3r]

You need to go through the numbers thoroughly.

I have made most of my money on buying them right. The market is inefficient. Being a broker helps in 2 ways, 1) getting a commission on transactions and 2) better info.

In Colorado, I can represent myself and the agent that lists the house must pay me the selling broker commission. That is 2.8% of found money.

[RikaKazak]

That's like asking "how much money can I make playing poker?"

You can lose money, you can breakeven, you can make a little, or you can make good money at it..

all depends if you know what you're doing or not.