Flipping is risky and tougher than it seems on TV, especially in Pittsburgh! More often than not, it usually ends up taking a bit longer and costing more than anticipated from entry to exit. Many home sellers we speak with consider flipping their own house as a possible option for selling.
Let’s break down what all goes into a fix and flip! (We’ll show you a detailed example with realistic figures at the end.)
Pittsburgh cash buyers typically see a return of 20-30% net profit, and a flip takes an average of 4-6 months from entry to exit. The less construction a property needs, the quicker you can sell it. This will shorten your timeline to minimize expenses and maximize profit! A home buyer in search of a flip won’t typically find the risk, time, capital, and effort worth it for anything less than a forecasted 20% net return.
There are 4 main components: Buying costs, holding costs, selling costs, and income tax
Closing costs (usually 3% if paying only the buyer customary costs)
Inspections: home, camera sewer, radon, pest, mold (if applicable)
appraisal (if applicable)
loan origination fees (if applicable)
Finders fee (if applicable)
Utilities (water, electric, gas, sewer, trash)
Construction (labor and materials)
Interest payments (if applicable)
Realtor fees (if applicable)
Closing costs (usually 3%)
Seller concessions/seller assist (if applicable)
25-35% of your net profit based on your ownership structure and tax strategy
Complete our contact form by CLICKING HERE or call 412-772-4200 to get started. Know your options! Cash Home Buyer Pros has solutions for when you need them the most. We have a very effective way to help sellers who strongly want or need to sell during quarantine. It is COVID-19 safe, contact-less, and virtual! Our team remains fully staffed and available to help you in times of uncertainty. We will make you an offer by phone on the spot.