Fix & Flips
Fix and Flips has been one of the best ways of generating sweat equity In Real Estate. Its all about buying some of the worst homes in the neighborhood and turning them into the best looking ones. Tho traditionally a risky investment strategy, with great risk also comes great reward.
When Looking for a house a to flip, there are three key numbers that you have to keep in mind to calculate expected profit.
Purchase Price, Remodel Cost, & Final Sell Price
1.) The Purchase Price : How much your buying the house For
2.) All-In Remodeling cost. : This includes all labor, Material, Holding and Loan Cost
3.) Final Sell Price. : How much are you going to be able to sell the house once remodeling is complete.
Once you have these three important numbers you can simply put them into this equation and calculate you estimated profit on a fix n flip deal.
Profit = Final Sell Price – All in Remodeling Cost – Purchase Price
To calculate a purchase price you can simply run the equation backwards.
Purchase Price = Final Sell Price – All In Remodeling Cost – Expected Profit
Running the number for a fix n flip project can be a pretty straightforward task. The complicated and risky part is being able to calculate those number correctly. For example if you’re not working with an experience agent they might calculate the final selling price after repairs incorrectly leaving you to cover the difference. Calculating rehab repairs can also be a daunting challenge for someone who’s not experience in home repairs. If either of those numbers are done incorrectly you could easily end up loosing money on your investment or simply never get deal at all.
At Simple Homes, we have years of experience flipping homes for ourselves as well as experience helping our partners buy homes at bottom of market prices to remodel them and sell them for top of market prices. Give us a call and find out how we can help you begin investing in fix-n-flip homes.
Simple Homes || 445 Union Blvd. Ste 106 , Lakewood CO 80228 || (720) 443-2725
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