There are also the marketing costs of finding deals. In our case, the average profit is around $30,000 without considering the essential support team: I have a project manager, bookkeeper and CFO. Maybe there is an unexpected repair, or the contract falls apart when we are selling, etc.
Of course, flippers usually run into some kind of problem that reduces that profit by $5,000 to $10,000. The selling costs can add up as well after paying real estate agents (being an agent myself, I am able to avoid this cost), title companies and closing companies. Most flippers are not using cash no matter what you see on TV. The carrying costs consist of utilities, insurance, property taxes, HOAs, maintenance, etc.
Here are what the numbers might look like on one of my house flips: But if you flip houses, you know that number is not representative of actual flips. If there were no repairs, closing costs, selling costs or financing costs, the average flip profit would be $60,000. The data reporting is actually very clear that these profit figures for flipping are simply the buy price minus the sell price. That is technically true if there are no expenses when flipping houses. There is some information going around that says the average profit on a house flip is $60,000. That is simple math and a simple calculation, but flipping houses is far from simple.
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