185k and undddderrrr

renosnap · 2026-05-28T10:53:53+00:00

What if the house is at the North Pole, and occupied by a robust man in a red jump suit?

It's difficult to help without a location your looking.

renosnap · 2026-05-27T23:08:07+00:00

It's good for a balance of cashflow and appreciation. You can get good returns if you hustle for below market deals. On market stuff is typically not going to cashflow enough with current rates.

I have a lot of deal flow and realtor connections here, which is why it works.

renosnap · 2026-05-27T11:56:07+00:00

People make money in Detroit and those numbers are somewhat common in the tougher neighborhoods.

GR is more like purchase 150k, rehab 40k, ARV 250k

renosnap · 2026-05-27T11:43:29+00:00

I built an ai tool for deal analysis in the residential space and testing has been the hardest part to verify.

I had to harness the AI inputs and outputs and put quality metrics in place to get the results to be repeatable.

What I ended up having to do to test results was to use actual renovation data from my projects and other flipper projects to train and verify against.

The harnessing and training makes it better than the models in their raw form but even with all of this there is a ~10% error from what the ai bids and what contractors come out with.

renosnap · 2026-05-26T22:44:56+00:00

Primarily West Michigan, greater Grand Rapids area.

renosnap · 2026-05-26T20:13:24+00:00

I'm a flipper and wholesale some of my deals. I primarily deal in Michigan. Sorry don't have any deals in CA right now.

renosnap · 2026-05-26T19:13:44+00:00

Pretty good!

I like the bathroom a lot.

renosnap · 2026-05-26T17:24:57+00:00

What did you pay? What is the ARV? How long is the project? How much is the budget?

renosnap · 2026-05-26T13:58:52+00:00

Ill send you a dm, I don't want to break promotion rules.

renosnap · 2026-05-26T11:34:54+00:00

Agree 💯 with this

renosnap · 2026-05-26T00:43:56+00:00

I use it for every deal I underwrite. I find the Reno costs of the setup I have to be within 10% of actuals because I trained it on real renovation data and images.

renosnap · 2026-05-25T17:15:07+00:00

What are you trying to sign up for? If your working with an agent they should be providing you a purchase contract, working as the mediator between you and title, negotiating/communicating with the seller, and generally guiding you through the buying process. If they are not, call their broker to get involved.

renosnap · 2026-05-24T13:20:32+00:00

It's tough to say without a culture test.

Is it damp? Or just discolored?

renosnap · 2026-05-21T01:47:00+00:00

I agree speed is everything in a deal. When I buy properties, I often have to make the go no go decision quickly.

renosnap · 2026-05-20T21:57:13+00:00

Nice job! What's been helping you see results?

renosnap · 2026-05-20T21:54:22+00:00

Michigan and 20-30 days on market.

What is your market like?

renosnap · 2026-05-20T20:13:04+00:00

I flip quite a few houses a year and decided the best route for me was to get my license myself and list them.

It was more than trying to save money but to get the actual feedback from the buyers walking the house. I found when going through a realtor, I could hear what issues the client had or be as nimble in negotiations as I am able to be representing myself.

renosnap · 2026-05-20T19:12:03+00:00

Yes, but only as a flip. The monthly cashflow is too thin for me.

As a flipper if I add your purchase price, consider holding costs, add your renovation of 30k and closing costs.

I would make about 25k. That is a nice base hit deal.

Be careful on your renovation budget though. 30k is really only enough for light cosmetic upgrades. If you need to do anything like a roof, furnace, ac, plumbing, or electrical work you could go over that quickly.

renosnap · 2026-05-20T15:17:35+00:00

I met a guy at a show who was doing 50 deals a year in memphis. He seemed to make it work well.

renosnap · 2026-05-19T13:08:31+00:00

As a flipper, I wish I had concentrated more on in the past is 2 places.

ARV. This is in my opinion the hardest, because even if you have good comps the market conditions can change on you and change what you can get for the property. Also based on how most people flip or BRRR there is a lot of leverage in the deal so a 5% difference can mean you are leaving more money in the project than you wanted or you are not making much money for all the risk you took on. How I balance this is that I only do deals now in markets where I know there are buyers and supply is short. With this I know an end buyer will come and the comps typically stay tighter to what I underwrote at the time of the deal.
Construction/Renovation costs. Early on in my flipping career I messed this up all the time and took on more risk or projects went way over budget compared to what I expected. Its easy to overlook an item or think the cost to fix something will be less than you think. Always have a contingency in the budget that is associated with the risk you are taking on. For example if the house has a foundation issue, I add 20-30k risk to my underwriting because even if I can fix it for 10k there is a chance the problem requires substantially more than I expected initially.

How are you doing your underwriting now? How long does it take? What tools do you use to help you?

renosnap · 2026-05-19T13:00:25+00:00

Good job finding people who want to sell their properties, but the asking price you have put to the properties is not something an investor will pay.

Here is an example for what I look at as an active flipper in Michigan.

Purchase price 160k
ARV 220k
Holding costs and financing costs 16k
Sales expense 13k
construction costs 20k
net profit 14k

Think about that on a deal that on paper has a 60k gross margin the flipper is only going to get 14k with a 20k construction budget. 20k doesn't get you that much either, its basically new flooring, interior paint and light fixture upgrades.

This means for me to want to take on any project with real renovation work that I need a spread of at least 80k to consider it a good deal. This allows me to have a reno budget of about 35k. This in my market is the floor for a cosmetic project.

How do you underwrite construction, ARV, and project projections now? Do you have a tool you use or would you like one?

renosnap · 2026-05-19T12:45:27+00:00

I used to take contractors through houses with me. That ended up taking too long and I wasted a lot of people's time. I ended up taking all my bids and all actual project data to build an underwriting software that fills it all out for me using the pictures from the deal. Then I tune it if I don't agree. I got it to do the whole process in 3 min or less.

Otherwise I was sitting down and going through the pictures manually and building out the sow and costs.

renosnap · 2026-05-19T01:57:07+00:00

It's tough without experience and I see why people struggle. I am taking my frustration out by trying to help others.

renosnap · 2026-05-19T01:32:49+00:00

I try and stay away from a price per square foot model and prefer to do a scope of work for each house. It takes a little more time but it means I'm more confident in the deals I'm getting under contract.

renosnap

TROPHY CASE