100+ Houses by 24: The Only 5 Numbers That Matter on a Flip in 2026

Hinzugefügt: 2026-05-26

[00:00:00]it doesn't really cash flow as a rental.

[00:00:01]And truth be told, like nothing cash flows as a rental today if you're running your numbers correctly. Now, a lot of guys will look at principal, interest, taxes, insurance, but not include what's called holdouts, which are like your capex, your maintenance, your vacancy, etc. And so, we're not going to get deep into that, but rentals are just really tough at the moment.

[00:00:21]Flips are still great. We're still doing good on flips. With that being said, if you guys will hang around till the end, I'm going to give you guys the full numbers breakdown on this, but we're going to go through this as well. I bought and sold over 100 houses. I'm 24 years old here in Oklahoma City. A lot of these guys are into sitting in their office showing you guys the numbers, but we're at a project showing you all the numbers. So, let's run into this. When what when I'm looking at a flip, the number one single most important number is the ARV. What is the after repair value of the property? What's it going to be worth when we're all said and done? Not what are we gonna pay for it today, but what's it going to be worth at the end. If you're a new investor, you got to go and you got to look at the comparables. We're going to be looking for similar built homes in the same neighborhood with the same bed bath, same square footage or very similar bed baths and square footage. We went online, we took a look around, we saw ARV after repair value somewhere in the 140 to 150 range. Now, I know this area pretty well, so I know it's going to appraise for about 145 or I know that I can sell for about 145 with the finishes that we're going to do in here. Now, something that I do that's different than a lot of investors is we do nicer rehabs. And so, this is a property that we don't have to paint the brick, which we're going to paint the brick. I know a lot of people don't like that. I'll tell you why here in a second, but we're going to paint the brick. We're going to paint the siding. Obviously, the entire interior is done. If you looked at the tile selection that we did in the bathroom, instead of doing 12x 24 tiles like a lot of investors will do, we did a nice subway tile, nice pattern. We're going to do quartz countertops, nice backsplash, and so we do things nicer than the average flipper around here.

[00:01:56]And we're got to watch out for that thing. It's a little uh janky and but we're able to sell our properties. And so anyways, we may spend a little bit more, but overall we're getting a higher price for our properties and we don't have problems selling them, which a lot of people across the United States do have issues selling the properties right now. I hear it all the time. Investors are saying they're really struggling.

[00:02:14]Yes, the market's tougher than what it was, but we can buy better deals right now. And as long as you're bringing a quality product to market, you're going to be able to sell your deals. All right, so we're looking at the ARV. So we ran the comps 145,000. Now, I've already bought this deal, so we're running this after the fact, but typically, you're not going to know what your purchase price is going to be until you've ran the numbers. We know because I bought this, I paid 62,500 on this deal. So, that was the price that I came out. I walked the deal with the seller.

[00:02:46]I said, "Hey, based on my scope of work and my rehab, I think I'm going to spend about 625. That's what I'm comfortable paying without doing inspections." Now, if you're a newer investor and you haven't done 15, 20 deals, I would recommend you always do inspections because there's a lot that can go wrong.

[00:03:04]I'm okay taking the risk on. I also feel like I can see majority of the issues and I know what to look for, but I do take that risk. Newer investors, you're still taking on risk with doing inspections. So, you want to mitigate and take on the least amount of risk as possible. So, 625. Now, the first line item that we've got to look at is what are our buyside closing costs? So, when I say buy side closing cost, what's it going to take to buy this deal? Most people are going to get financing, even if you don't get financing, you're still going to have title fees or lawyer fees, depending on what state you close in.

[00:03:35]Different states close a little bit differently. Oklahoma, we close with title companies. Other states close with closing attorneys. Doesn't matter that much. You're going to pay either way, but it's just something to keep in mind.

[00:03:47]So, in this case, we've got some lender fees and title fees here. I'm going to walk you guys through them quickly. 2% origination point. So, I did close this deal hard money. 2% 12% interest. This is the only deal that I've closed in the last 24 months hard money. It's a cheap enough deal that I'm okay have closing it hard money. I wouldn't typically close a deal hard money though. For newer investors, you may have to close deals hard money. Hard money is good if you don't have a lot of work history. Uh if you are not as solid of a a borrower.

[00:04:20]So, if in if lenders don't have history on the deal flow that you've done, you're probably not going to qualify for commercial funding, which is what I buy most of my deals with, it's a lot cheaper than hard money. That's okay because a good enough deal, you can still close hard money and it's not the end of the world. So, you can see here we've got e-recording fee, abstract closing fee, CPL fee, title, title insurance, all these all the way down through here. These are all just title fees and I couldn't even explain all of them to you. They're all pretty small.

[00:04:47]585, 100, 25, 150, 444. These are going to change depending on the purchase price. So remember, your title title fees are not a fixed cost. They are going to change a little bit, not a ton, but a $100,000 house is going to have cheaper title fees than a $300,000 house. So you need to run those a little bit differently. Uh so all these fees combined, our total is $4,320.70.

[00:05:11]So you can see by the time I close this deal I'm 62,500 on the purchase plus the 432070 on my buy side closing cost and then we get into the rest of the cost.

[00:05:23]Now the second line item item that we got to look at is holding cost. So holding costs are going to make up your insurance, your utilities, taxes, interest, and then mowing and just maintenance around the property. And so I'll show you guys how I run these. Now, depending on what state you're in, these numbers are going to change a little bit. If you want to figure out how much the title fees are in your state, call your local title company. Reach out to your local realtor. They'll be able to get you a cost estimate so that you can underwrite deals correctly. For holding cost, you're going to want to look into each of these different numbers. What's the average insurance in your state?

[00:05:57]What's the average utility cost in your state? What's the average taxes? So, tax rate is pretty easy. You can usually Google that. Insurance you can typically Google as well. Maybe use AI, get a pretty good range. Insurance in Oklahoma's pretty high. I ran this at 08% annually.

[00:06:14]This is for a builder's risk policy.

[00:06:16]Very stripped down insurance policy.

[00:06:18]It's not a nice policy by any means.

[00:06:20]It's a cheap policy, high deductible because I don't plan on exercising the insurance on this property here. This is purely for the lenders sake because I have to have insurance on the property.

[00:06:31]By the way, I'm running these holding cost based off of a four and a half month holding period. I would recommend underwrite for six months minimum. Now, when you're underwriting, you also need to understand what your market cycle is because there are some markets where you may need to underwrite for an 8 to 10 month holding period. There are other markets where you may need to underwrite for a 12-month holding period. Depending on how good your market's doing versus how bad your market's doing, how long the days on market are and other factors inside of your market will determine how long you underwrite for. Now, 6 months is typically minimum you want to underwrite a deal for, especially as a newer investor. And the longer you underwrite for, the safer the the deal is or the safer you're underwriting.

[00:07:17]Now, something else I'm going to mention. You guys have probably heard this a lot. You always want to underestimate your ARV right here and you want to overestimate what your rehab is. And so just keep that in mind when you guys are underwriting deals. Just keep the emotions out of it.

[00:07:32]Underestimate ARV, overestimate rehab.

[00:07:34]If you guys are interested in how I underwrite, find, and buy deals like this one here, and you want to work with me personally and my team, you click the link below, fill out an application, and if you're a good fit, we can work together. We're taking on a select amount of new students each month. And so if that's something that you're interested in, click the link below.

[00:07:55]Otherwise, appreciate you guys watching the video. Let's get back into it. Okay, so insurance at 8% annually. We've got taxes at 6% annually or this is utilities, sorry, and then taxes at 1.12% annually. And so these are my fixed insurance, utility, and taxes for 4 and a half month hold period. Then I've got interest at 12% on the purchase of 2714. The way that my calculator breaks this down is they break the interest apart from the purchase and the rehab. But 2714 for the purchase, $81 for the rehab, and then I have a mowing of $360, which is about 80 bucks a month. So total costs are 5,79 for the entire project. And so we've got to account for whole cost. You guys can see underwriting is really not that difficult. We've got our ARV, we got our purchase price, buy side closing cost, holding costs, and then lastly before we get into rehab is our sale cost. So, our sale cost or sellside closing costs typically are going to consist of commissions, title fees, and then a little bit of a buffer in there as well.

[00:09:09]So, in this case, I only pay 3% in commissions when I list because I'm also a real estate agent. I don't talk about this a ton, but I'm a real estate agent.

[00:09:17]I have a real estate team of 14 agents, top 25 in the metro. Last year, we did 33 million in sales. I wanted to point that out. If you guys are in OKC, you need to buy and sell a house. My team's pretty kick-ass. So, anyways, with that commissions 3%, that's 4350 on this ARV of 145,000. Now, if you're not a real estate agent, there is no set commission. You probably need to factor four to 6% somewhere in there. Now, we have title fees in here of $2,000. It's a fixed cost. They're probably not going to be this much, but I'm overestimating just a little bit. Typically, title fees on a sale like this are like 1,500 bucks. And then I've got a little bit of a buffer. This is for TRR, which stands for treatments, repairs, and replacements. Once we put the house under contract, buyer's going to come out here and they're going to do inspections on the property and they're going to request some sort of little items that they want done. I've got three grand in here. May not be the full $3,000, but that's just a little bit of a buffer that I've got. Now, on to the rehab portion. So far, we've got about a week and a half left on this project.

[00:10:20]Maybe a week, 4 days. We're going to be about 37,500 all in. So far, we've spent 26,000 as of today on the project. So, we've got 7,500 bucks left. Um, we're tracking for this. This is about we'll end. I'll make an update video for you guys. The 37,500 is our rehab. If you want to see the full rehab breakdown or the full scope of work, either wait until the new video that we post or you can go watch the first video we posted on this house here.

[00:10:47]>> Your buffer for your TRR, does that stay about the same on every property you buy?

[00:10:51]>> No. Good question. So, the buffer for the TRR is going to shift. If this is this is a $100,000, this is a $400,000 property, it's going to be different.

[00:10:59]So, typically I buffer TR around 1%. I don't throw a ton in there, but I threw just a little bit of a larger buffer on here for this one. But typically for a buffer, I'm like 1% of purchase price is what I will buffer on the TRR, etc. Now, the other reason why I bumped this up here is when we originally underwrote, we underwrote our rehab at 40K. And so this gets us closer to that 40k in rehab, but it looks like we're tracking for a little less than 40k on this rehab here. So now we just got to add the numbers up. Purchase price of 625, buy closing cost of 4320. We got a holding cost of 579, sellside closing cost of 9,350, rehab of 375 brings us our total all-in of $118,749.70.

[00:11:50]Now, if we take our 145, subtract out 118,749, leaves us with a net profit of 26,250 or about 22% on this deal here. 22% margin. This thing's about to fall.

[00:12:04]Anyways, that's this project here.

[00:12:06]There's some projects we make 80 grand on them. Other projects we make 26,000.

[00:12:10]And sometimes, like the one we just closed, I didn't we didn't get to record a video at it. Um, but if you watch my channel, you know it's the black house.

[00:12:18]We made $6,000 on that project. Six months, $65,000 later, we made six grand. You win some and you lose some.

[00:12:24]One thing that you guys will get out of me is transparency. I'm not going to you guys. I'm not going to hop on here and act like everything is perfect because real estate is just chaotic. It's a show. Uh, and there's really nothing better to explain real estate outside of that. But I love it. I love the hunt. I love doing deals.

[00:12:42]I get to get out here, do these deals every day, underwrite them like this, and it's a little bit like gambling. I don't like to go to the casino because this is my casino. So, I hope you guys enjoy these videos. If you want the full breakdown on that, I have my calculator that we're going to be going live with in the next 45 days hopefully. You can join the weight list below. It's in the description. I will also send you guys the PDF print out from my calculator of this full breakdown here. Cool thing about the calculator is it gives you best case, worst case, and a realistic case. So when you're underwriting numbers, you can see, okay, what do the three different variables look like here? What's my worst case scenario?

[00:13:19]What's my base case scenario? And what's my best case scenario? I hope that adds value and I'll catch you guys