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Flipping a house can be very exciting. But it can also be a major wallet drainer. Make sure you’re prepared for all the costs before you sign the paperwork on a fixer-upper by accounting for these expenses:
1. Purchase Price of Fix & Flip Property: This is the original sticker cost that you close on when you buy the property. But this is just one part of the picture!
2. Cost to Rehab a House: This is where you’ll spend a big chunk of your budget and it includes the fun cosmetic upgrades as well as any structural or systems upgrades the house needs. Make sure to plan for unexpected costs here because they’re sure to pop up.
3. Carrying Costs to Flip a House: You still have to pay the monthly taxes, utilities, and insurance even when you’re flipping a house.
4. Fix & Flip Marketing & Sales Costs: Flipping a house means that you plan to sell it after you remodel. So you have to factor in the costs associated with selling the home, including real estate agent commissions.
If this is something that interest you, feel free to contact me anytime!
Tom McConnell
Licensed in Virginia (#0225245186).
Licensed Realtor
Founder Patriot Real Estate Partners LLC
Keller Williams Town Center - Cell: 757-869-6654
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