{"appState":{"pageLoadApiCallsStatus":true},"articleState":{"article":{"headers":{"creationTime":"2017-03-08T21:33:42+00:00","modifiedTime":"2017-03-08T21:33:42+00:00","timestamp":"2022-02-24T17:02:43+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"Flipping Houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"slug":"flipping-houses","categoryId":34269}],"title":"Deciding How Much to Pay for a House to Flip","strippedTitle":"deciding how much to pay for a house to flip","slug":"deciding-much-pay-house-flip","canonicalUrl":"","seo":{"metaDescription":"","noIndex":0,"noFollow":0},"content":"A key first step to profiting from a flip is not to pay too much for a house. 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Deciding How Much to Pay for a House to Flip

By: Ralph R. Roberts and Joseph Kraynak and

Updated: 03-08-2017

From The Book: Flipping Houses For Dummies, 4th Edition

Flipping Houses For Dummies, 4th Edition

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A key first step to profiting from a flip is not to pay too much for a house. When deciding how much to pay, estimate the amount you can reasonably sell the house for after fixing it up, and then subtract your expected costs, which include the following:

Purchase price
Cost of repairs and renovations
Any back taxes due on the property
Holding costs (property taxes, utilities, insurance, interest payments, homeowner association fees, and so on for the time you expect it will take to buy, fix, and sell the house)
Any agent commissions and closing costs when selling the house

Aim to earn at least a 20 percent profit after subtracting all costs.

About This Article

This article is from the book:

Flipping Houses For Dummies, 4th Edition ,

About the book authors:

Ralph R. Roberts is a master at flipping houses, earning a profit even in the deeply depressed real estate market in Metro Detroit, Michigan. He is the award-winning author of several books, including Foreclosure Investing For Dummies. Joseph Kraynak is a writer who's contributed to several Dummies books, including Flipping Houses For Dummies, Oceans For Dummies, and Selling on Amazon For Dummies.

This article can be found in the category:

Flipping Houses ,