Posted by Monique on June 24, 2000 at 19:10:06:
I don’t focus/specialize on rehab flips, but many of the concepts are the same as in other parts of the business.
It’s certainly far easier to work the deal when the house is vacant. If it’s occupied, you have to coordinate with the owner/tenant on when you can look at it, or when your prospective investors can look at it once you have it under contract. It can be done, it’s just easier when the houses are vacant.
Finding an investor to flip to requires that you know HOW MUCH the repairs will cost and how much PROFIT the investor is likely to make after they do the repairs.
… Profit to the rehab investor = Likely Sales Price after repairs MINUS Repair Costs required MINUS Holding Costs and Closing Expenses MINUS Purchase Price (from you) of the house.
If the profit to investor is $20K or more, assuming you have made good estimates along the way, you should have no problem finding investor to flip to. If the investor can get a healthy profit and you can pull $3K - $5K for yourself, you’ve found a good flip deal.
Happy deal making!