The average profit a rehabber makes on a rehab project is around 10 to 20% of the After Repair Value (resale), but it varies depending on the project and the market.
A 10% profit would be on the lower end, and a 20% profit would be considered a 'home-run' by most rehabber's standards.
So for example, if a property's After Repair Value (Resale Value) is $250,000 a rehabber should expect to make between $25,000 to $50,000.
Reality Check: The House Flipping TV Shows always give the illusion that they are making hundreds of thousands of dollars on each flip, but honestly a lot of the numbers are fake & they don't take into account all of the project costs it truly takes to flip a house.
Right now the market is very competitive, so profit margins are being compressed. In expensive markets on the East & West Coasts, some flippers are making <10% profits of the ARV.
There are also plenty of ways that you can lose money on rehab projects as well.
Here’s a list of the Top 25 Things That Can Go Wrong on a Flip
