Thanks to networks like HGTV, more and more people are becoming interested in house flipping as a means of making extra income. While flipping houses isn’t for everybody, it does offer the possibility of positive returns for those who have the skill and ability to invest wisely and work diligently. Here’s an overview of how much you could make flipping houses.
How Much Do House Flippers Make?
The amount of money you can make flipping houses largely depends on how many houses you can flip, not in finding a single house that will net you a huge profit. One of the most consistent house flipping tips you’ll see is to search for houses where you can make a clear 10 percent to 15 percent profit on the sale after paying for repairs, realtor fees, title fees and financing. While those numbers can change depending on the price range that you’re working in, most experienced flippers hope to make around $25,000 per flip, although they always hope for more. What they won’t do is buy into a house that will only give them a profit of $10,000, which could be eaten up if there are unexpected expenses during the repair process.
What to Watch Out For
There are two major areas where new house flippers tend to lose money: unexpected repairs and holding the house for too long. An experienced flipper will have a complete flip done within 90 days, freeing up their money for the next investment. If it takes longer than 90 days to get the house sold, you’re likely losing money each day. Also, you should always estimate your repair costs on the high side by adding a 15 percent to 20 percent buffer to your expected expenses. With the right system in place, it is possible to flip a dozen houses or more each year and make gross profits in the six figures.
If you’re interested in learning how to flip houses successfully in the South Florida market, we encourage you to join us at the Home Remodeling and Design Show. We have a variety of demonstrations and products designed to help house flippers get the most out of their investments. There is plenty to see and learn each year, as well as networking opportunities for new flippers to get started.