It actually costs you nothing…
But that’s only if you know how to flip houses with no money using “OPM”…but that’s the subject of another post entirely.
Having said that though, there is money and costs involved when flipping houses – it’s just not your money.
This was a question from a new real estate investor I met at our most recent MeetUp – which we just started doing in our local market. It’s great fun to talk with new real estate investors and really see exactly what’s on their mind, what’s holding them back, the issues they’re having with their first investments – and I always walk away seeing things from a completely different perspective.
Real Estate Investment Association meetings and meetups in general are great ways to not only network and grow your house flipping team. But for me, it gives me some fresh ideas as to what to discuss here on BiggerPockets as well!
So let’s get back to the question…
How Much Does It Really Cost to Flip a House?
The answer here varies widely based upon the project as well as the price range of properties in your area.
For me, we typically buy houses in the six-figure and under range and sell them for $200,000 – 300,000. Your market may be completely different than this, either up or down.
Also, depending on rehabilitation cost, the cost can vary from thousands of dollars to hundreds of thousands of dollars!
Regardless of what the upfront cost is, the most important number in house flipping is After Repair Value, otherwise known as ARV.
How Much It Costs to Flip a House: Nail the ARV
To get to how much it’s going to cost to flip a house, you first need to know what you can sell the property for when it’s all done. Once …read more