Flipping houses, how much profit to expect after remodeling?

[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.