when you go to flip a house and you hire a contractor or 2 will you make a profit in the end or lose?

Question

givin the average house and the average flip

Answer 1

This depends on many factors. Flipping houses seems a lot easier than it really is. If you are asking this question, I think you need to spend a little more time researching the ins and outs of flipping real estate. If you jump in blindly, you are apt to lose lots of $$$.

Answer 2

I do most of my own work, it really pays. I can do a roof in 3 days with the help of some hired labor (at say $25 an hr) for $1200 when a contracter would charge 5-7,000.

If you aren't handy, then you can still make money with contractors doing all the work, just don't expect to make the huge bucks. You'll also have to have more money upfront, contracters don't like "You'll get paid when the house sells!"

Answer 3

Also, on all the flip it shows I have seen I have noticed that the buyer has been in the business for a long time and has 'connections'. They know which contractor to call that will give them the best bang for their buck. Some have resorted to day labor for things like landscaping, demolition and clean up.

The people above are right...learn how to paint, put up tiling in the bathroom/kitchen, flooring is even possible to learn on your own if you do hardwood flooring. Changing fixtures and the like should be easy enough. I think you can even do drywall. (Saw that on HGTV once.)

Leave things like roofing to the professionals! (Ok never mind that.) Leave things like electrical rewiring and plumbing to the professionals.

Answer 4

You should have the home thoroughly inspected by a licensed contractor before you buy it. Most of the work can be done by yourself--things like painting, re-carpeting, replacing cupboards--all easy to do by yourself. That way you will make some extra money.

Answer 5

Based on those shows, they don't do a lot of the details. They work themselves and don't tell you all the real costs. Most do cosmetic changes and don't bring them up to code, and use cheap labor and cost cutting measures that most dont consider. Their profit doesn't include salaries or commissions or taxes on profits.

Answer 6

If you have a good contractor and they can get the job done on time and on budget. Once you find a good contractor you will be set. Good luck and I hope you succeed.

Answer 7

Consider this equation:
Cost to acquire (buy) + Cost to change + cost to hold +cost to sell subtracted from the future sale price equals profit.