How many houses can you flip in a year? This is a very good question, and one that a lot of people ask. However, in order to answer this question, we need to ask a few questions. Read through to the end because I do provide an answer.
What’s the average size of a house you want to flip?
Flipping 4,000 sq.ft. homes would likely carry a different timeline than flipping 1,200 sq. ft. homes, so you want to consider your market and determine the kinds of properties that might make good flips.
How much renovation work will typically be needed?
Will the flips be total gut jobs, or will the repairs be more minor touch ups? Are permits involved? There are number of questions to ask to determine the extent of the renovation work.
You want to use a good estimating and budget worksheet as well when thinking through the renovations. Here’s a good one.
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Are you doing the repairs yourself or hiring a contractor?
You may be capable of doing the repairs yourself, but if it’s just you and your spouse tackling the renovation work on the weekends, then what would normally take a few weeks or months by a contracted crew could easily drag on longer than you planned or hoped.
Are you flipping multiple properties at once or one at a time?
For the sake of this blog post, I’m going to assume one at a time.
Are you financing the purchase & rehab or doing it all with cash?
While it is possible to finance both the purchase and the rehab side of flipping houses, the more you have to rely on the bank or hard money lenders, the longer things can drag out, so how you fund your operation needs to be taken into consideration as well.
What kind of market will you be flipping in?
The real estate market where you want to flip houses is a huge consideration. How often do good fix-and-flip deals come on the market? How long can you expect your properties to sell when it comes time to flip? A local real estate agent will be able to help you answer these questions.
How many houses can you flip in a year? Here’s the answer.
I get it. You don’t have all the answers. You’re just looking for a ballpark answer to understand how many houses can you flip in a year. So, let’s create a fairly typical example for someone just starting out flipping houses, so I can get you a “rough” answer.
Let’s imagine the following: you’re looking to fix-and-flip 2-4 bedroom houses with an average purchase price of $50,000, and an average after-repair-value (ARV) of $100,000.
Your average rehab costs will be, let’s say, $20,000. You plan on doing about 50% of the work yourself, and contracting out the other 50%. Sound realistic so far? Ok – good. Let’s continue.
Furthermore, you’ve got some credit cards to use for the rehab, but you will need a bank to help you finance the purchasing side. You will be flipping one house at a time. Based on this example, I would say someone could flip 3-4 houses per year.