House flippers want to make as much money as possible, but how many houses can you flip in a year?
The sky is the limit. There aren’t any regulations stating you may only flip ‘X’ number of houses per year. It depends on your finances, time management, and the availability of homes in your area.
The average investor flips 2 to 7 homes a year. You may flip more or less – depending on your capabilities.
So what determines how many houses you can flip in a year? Check out the following factors.
How Much Capital Do You Have?
You need money to invest. You can get financing, including hard money loans to flip homes, but you almost always need to invest some of your own money. Since most people don’t have unlimited resources, capital may hold you back a bit.
If you tie up all or most of your capital into a home, you may have to wait until it sells to flip another.
What’s The Market Like When You Buy?
It’s not always a buyer’s market. Sometimes there are only a few houses available and not every house on the market is flippable.
If there aren’t a lot of houses to buy, it limits how many houses you can flip in a year. Even if there are homes on the market, they may not be suitable for flipping. Look for houses priced below market value that leave room financially for renovations.
How Much Time Do You Have?
Time plays a major role in flipping houses and in many different ways.
First, there’s the time needed to find suitable homes. Using a real estate agent may speed things up, but finding the right home takes time.
Next, you need time to renovate the homes. Extensive home renovations take up to 6 months, but not all renovations take that long. If you’re lucky enough to find homes that don’t need structural work, you may renovate and flip them faster.
What’s The Market Like When You Sell?
Selling the house is another market game. How many buyers are out there? What’s the market like in your area? Are prices high or low when you are ready to sell? What about interest rates?
Many factors play a role in how long it takes to sell the home. Some homes sell fast, while others take months. If your capital is tied up in the home, you can’t buy and flip another home until you get your capital back.
So how many houses can you flip in a year? It depends. On average, try to flip 2 to 7 at first, and with experience, you may flip more. Don’t rush the process as you’ll end up cutting yourself short, but also don’t take so long that you realize an opportunity cost for flipping homes.
It’s a fine balance you walk when flipping homes, but every bit of experience helps you work faster and more efficiently.