flipping homes: fast decisions with cost averaging

Flipping Homes: Fast Decisions with Cost Averaging

Using Cost Averaging to Make Quick Decisions

Flipping homes: fast decisions with cost averaging will provide you with quick tips on how to find the right “deal”, when looking to invest in real estate.  To find one good buy, you often need to go through dozens of homes.  Also, you must act fast, or you will lose the deal.  So, how do you instantly price out the rehab costs on dozens of homes, without waiting on contractor bids, and still have accurate numbers?

The key is to know your market, and know your pricing.  Otherwise, you need to find a realtor with the knowledge to do it for you.  Then you can create a cheat sheet, enabling you to price out the rehab costs within minutes.

My “rule of thumb” offer is 70% of the ARV (After Repair Value), less the cost of repairs.  Before entering the home, I already know the ARV.  Then I take a quick walk through the home, use my cheat sheet to estimate repairs, and write my offer. The prices can vary, based on the finished product you intend on creating. Below is my most often used “cheat sheet” for homes I will sell in the $200,000 – $300,000 range.  Feel free to use it, or adjust based on your finishing goals.  Cost averaging, allows me to calculate repairs immediately.

Cost Averaging “Cheat Sheet”

Roof $6,000 average size (1500 sqft home)
Windows $425, per 4×4 openning
Exterior Doors $300 per door
Siding $6 times sq ft of home
Exterior paint $325 times sqft of home
Driveway(blacktop) $6,000 average size (4-cars)
Garage door $900 (2-car) $700 (1-car)
Interior paint $2.50 per sqft of home
Interior doors $150, including hardware
Flooring $6 per sqft (average of all types)
Kitchen $10,000 (average size)
Bathroom $4,000 hall bath, $6,000 master bath
Electric $1800 new panel, $2,000 re-wire
Furnace $4,000 average
AC $1,500 average
Water Heater $800 average
Finish basement $10 per sqft

Feel free to share my blog Flipping Homes: Fast Decisions with Cost Averaging, use my cheat sheet, or call me anytime for more information!

About The Alfriend Group

Kyle Alfriend has been selling and marketing homes for over 20 years, successfully selling and buying homes in a variety of market conditions. He has sold over 1,200 homes, totaling over $250 million in homes sales. In Dublin, he has sold more homes that anyone ever. He has represented the areas largest builders, built his own homes, and owns and manages several investment properties. He has been awarded the "Top 10 M.A.M.E. Award (Major Achievements in Marketing Excellence) by the building and Realtor associations every year since 1993. He believes that everyone deserves the very best in knowledge, experience, and integrity when buying or selling their home. The Alfriend Group was started 5 years ago as a real estate team of professionals, specializing in buying/selling homes, property management, and real estate investments. For more information, call us today at (614) 395-1776.

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