Brandaddy
Member
Personally if I was to redo my house flipping journey I would've stuck with simple cheap 2-3br ranch style houses that don't need any exterior work and just a little interior updating. I did two of those this year, one of them in particular I bought as an REO foreclosure for $35k. It took us 4 days to patch/texture/paint the walls, put in new floors, trim doors, and paint the kitchen cabinets. We spent in materials and labor just under $5k and it appraised for $60,000 after we had it leased out. So I was able to refi out all my cash and pay myself a few bucks at the end. It was absolutely perfect. In/out and rented out in a week and onto the next place. Painting walls and doing floors are super easy and a guy could do it himself over a few weekends if he wanted. Plus since the place is structurally in good shape, you don't really need to worry about big ticket items, basically just slap a little lipstick on it and rent it out.
As far as the cheap and easy stuff. I can basically guarantee paint or sheetrock if the walls aren't salvageable which is very rare. Then floors, and trim. Doors if necessary. Between all of that you can basically transform a 1,500 sq.ft house for roughly $2,000-2,500.
I guess to explain why I say smaller jobs instead of big ones are the three crack houses we did this year are taking forever... We started in May and are just now wrapping up the last one. The net worth gains are great, but a single family house with a 80%ltv mortgage is still only going to cash flow about $400 a house. So if you can only do 3-4 a year, your passive income will take forever to build whereas the smaller ones I could probably do at least 12 a year and build a pretty significant amount of cash flow in a short period of time which is more important to me than the capital gains.
