DoNotWeepAtMyGrave t1_j9eki1n wrote on February 21, 2023 at 10:13 AM

Reply to comment by NotARageComic in How much would it cost and what is the process to rehab a totally vacant home? by k032

I’d say it’s closer to $90-100k. There isn’t much of a profit margin on these row houses, which is why they’re still vacant.

Did that one sell for $119k? That’s the other problem.

NotARageComic t1_j9g0125 wrote on February 21, 2023 at 5:30 PM

I think it went $114 but I can’t remember.

DoNotWeepAtMyGrave t1_j9g10a3 wrote on February 21, 2023 at 5:36 PM

Yeah, anything over a 10% return in real estate is good, but 30-50% returns aren’t realistic. $114k is maybe 15% profit.

NotARageComic t1_j9g13s6 wrote on February 21, 2023 at 5:37 PM

Dang! Good to know.

DoNotWeepAtMyGrave t1_j9g2olh wrote on February 21, 2023 at 5:47 PM

Yeah man. If it was that easy to make a 50% return, everyone would be doing it. Many of these projects either fail, or barely break even. Most would be thrilled at a 15-20% return. I don’t flip, I BRR (Buy, Rent, and Refinance) and I make higher profits but also have higher carrying costs. On most of my properties I make about a 10-15% rental return, but the properties increase in value over time as well.

yyyyy25ui t1_j9iww0q wrote on February 22, 2023 at 8:06 AM

A lot of people that flip houses aim for 20%, it’s hard to keep it at that, but that’s usually the aim.

DoNotWeepAtMyGrave t1_j9n3x3c wrote on February 23, 2023 at 3:47 AM

20% is the median best outcome for flips. The average is much much lower.