Virgie Vincent, Real estate agent, interior designer, and stager (Vergee Interior Design)

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Richard Weeks
Dallas, TX
REALTOR®, Broker

Who cares what someone will spend, got to look at the ARV and cap rate.

Jul 10, 2017 07:27 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Far to broad of a question to answer.  Every seller and situation is unique. 

Jul 10, 2017 08:32 AM
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

Newbies tend to spend too much.  THey want to make it perfect, like the TV shows that have a budget and discounts from vendors because they mention them on the shows.  Newbies may not take into account the type of neigborhood:  for example on my first flip in a low budget neighborhood, I almost ripped out and redid a cement patio befcause there was this huge crack in it and one half was lifting up.  I ended up shaving it to even it out and sealing up the crack with more cement.  The buyer said"  Wow, there is a patio"  no complaint that it wasn't perfect, because it was a low end neighborhood.  But  did redo the bathrooms!

Jul 10, 2017 09:24 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

depends on the square footage of the house,  one of my investor puts in $30,000 as a limit and she does great at making a great profit margin.


Jul 10, 2017 07:44 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that depends on the marketplace and how much they paid for it...often, they pay too much....

Jul 10, 2017 07:24 AM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Although your question addresses the point of greatest interest to flippers, it is not the right question that determines to too much/too little concern.

PROFIT is made on the acquisition cost. The magic is how to get a homeowner to sell the house for $50,000 below market value. It as simple as that.

Very likely, on a TV near you, are ads for organizations (investors) offering to purchase homes directly from the owner. (offerpad) Analyze the PROMISE being made by these groups and you will see what the consumer is WILLING TO BUY.

Sellers are happy, investors are HAPPIER. 

Now, to specifically address your question, "Is there a rule of thumb?" and the answer is yes.


Jul 10, 2017 07:31 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

There is no rule of thumb except you need to be the cheapest buyer of all types.

Jul 10, 2017 07:27 AM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Jul 10, 2017 05:08 PM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

There's no rule of thumb. It depends on the investor's desired yield, the market, ARV, and the individual property.

Jul 10, 2017 08:51 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

No rule of thumb.   It's all about the profit margin.  

Jul 10, 2017 07:39 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC

That totally depends upon the market, the property and the buyer's tolerance and demands for investing. There's no rule of thumb here - each investor is is each property.

Jul 10, 2017 07:35 AM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Flipping has pretty much disappeared in our market. Property is too expensive from the start.

Jul 10, 2017 07:27 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

You should be shooting for a 15% ++ profit

Jul 10, 2017 07:25 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

That is up to the homeowner on how much they want to spend.   I don't work with flippers though.   I have investors that hold and rent them.

Jul 12, 2017 07:35 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It varies.

Jul 11, 2017 06:29 AM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

How could you possibly have a rule of thumb? Some homes require cosmetic renovations while others require major overhaul. You couldn't possibly create a general rule based on dollar amounts or percentages.

Jul 11, 2017 06:22 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Kathleen Daniels nailed this one!

Jul 11, 2017 06:13 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Virgie Vincent - it depends!

Jul 10, 2017 11:26 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

No rule of thumb, just a spreadsheet that fills in the components

Purchase Price+repairs+carrying costs+risk or profit=sales price

Jul 10, 2017 10:16 PM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


It depends on the marketplace and what they are buying, where, etc, and they should review with their CPA.  There is a lot more to flipping than many see on HGTV

Jul 10, 2017 08:48 PM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

These houses are not cookie cut and are all different.  How do you set a price when they are all different.

Jul 10, 2017 08:31 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

I do not advise on that, that's up to them.

I put them in touch with good tradesmen though.

Typically newbies over spend, experienced spend what pencils out.

Jul 10, 2017 08:03 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

People who flip have formulas that they go by....

Jul 10, 2017 05:46 PM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ

Every home is different. We have flipped many homes over the years and I've seen it all.  Working on 3 right now and one needed about 8K, one about 15 to 16 k and the other one is too early in the process to know but I'm guessing closer to 30 or 40. We have a team of folks that work on these for us and we've got it down pretty good. Something always POPS up so make sure there is a contingency budge.

Jul 10, 2017 05:37 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

If the required profit margin is there, there is no limit.

Jul 10, 2017 03:12 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I deal with seasoned investors and they take each situation and evaluate it. There is no stock answer.

Jul 10, 2017 02:55 PM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Yes, as much as is neccessary to make it look good and turn a profit.

Jul 10, 2017 02:46 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

        More important, do they have experience and know what they are doing?  Or did they "see it on HGTV"?  I have seen beginners buy houses they thought could be fixed up; those houses turned out to be tear-downs.

Jul 10, 2017 01:24 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

It is rarely heard that flippers spend too much money, unless they have no experience at all. In my area, a lot of flippers now invest in expensive finishes. This is what consumers are looking for( since housing very expensive, buyers hate cheap finishes, they are willing to pay more for quality). 

Jul 10, 2017 11:36 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

I have no opinion nor do I consider what they are spending on anything regardless of purpose.  My major concern is the customer's ability to pay for my services.

Jul 10, 2017 10:26 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Too much because they find things they couldn't see before the remodel. Some people just go nuts with granite etc when the market won't give a return on that.

Jul 10, 2017 10:10 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It depends on the house. I as well buy, fix and sell homes and also have many cash buyers i work with. I have some that just want to do paint and carpers and others that only want to buy the homes that need to be gutted. Some investors say the rule of thumb is 15% return based on sales price, i like to calculate every home separate to see if it makes sense

Jul 10, 2017 09:31 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

 I do not even identify properties unless they show me their wallet. Here in CA I have seen 2-5M cash/ hard money.  They want pay as little as needed often working with several agents simultaneously.

Jul 10, 2017 09:30 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

That always depends on the ROI for the investment made, Some improvements give a better return than others but it is always relative to the respective market area as the home still should comp out.

Jul 10, 2017 09:08 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Virgie Vincent No rule of thumb.

Jul 10, 2017 09:03 AM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Depends on the house and quality of the neighborhood.

I find that most flips, look good until you look closely.  Most flippers go for cosmetics and leave the old rusted stuff there...


Jul 10, 2017 08:46 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

They need to do what they need to do. No hard and fast rule!

Jul 10, 2017 08:39 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Interested to see what others have to say, and I would think it depends on what profit margin the investor needs. I don't work with flippers in my area. And the prices can make it a challenge

Jul 10, 2017 08:05 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I have no rules of thumb for most anything. And I don't work with flippers.

Jul 10, 2017 07:50 AM
Roy Kelley
Retired - Gaithersburg, MD

It is very easy to spend too much money and end up with a loss.

You need to have a good idea of your costs before you purchase a property to flip.

Jul 10, 2017 07:49 AM