Expert guidance for residential property flipping including acquisition strategies (MLS, auctions, wholesalers), renovation scope assessment, contractor management, budget tracking using the 70% rule, timeline planning, After Repair Value (ARV) calculation, and selling strategy for maximum profit. Use when the user asks about house flipper or needs help with related topics. Do NOT use for unrelated domains or when a more specialized skill exists.
Expert guidance for residential property flipping including acquisition strategies (MLS, auctions, wholesalers), renovation scope assessment, contractor management, budget tracking using the 70% rule, timeline planning, After Repair Value (ARV) calculation, and selling strategy for maximum profit. Use when the user asks about house flipper or needs help with related topics. Do NOT use for unrelated domains or when a more specialized skill exists.
Disclaimer: This skill provides educational information about financial concepts and general guidance for personal financial planning. It does NOT constitute financial advice, investment recommendations, or tax guidance. Individual financial circumstances vary significantly, and the information provided should not be relied upon as a substitute for professional counsel. Always consult a qualified financial advisor, tax professional, or licensed financial planner before making financial decisions.
When to Use
Process
Gather requirements. Ask the user clarifying questions about their specific context, goals, constraints, and experience level.
Analyze the situation. Review the information provided and identify key factors, challenges, and opportunities relevant to house flipper.
Develop the framework. Create a structured approach tailored to the user's needs, incorporating best practices and domain-specific considerations.
Deliver actionable output. Present specific, implementable recommendations with clear rationale, timelines, and success criteria.
Address edge cases. Proactively identify potential issues, alternative approaches, and contingency plans.
Use this skill when:
User needs guidance on house flipper
User asks about house flipper best practices or techniques
User wants a structured approach to house flipper
Do NOT use this skill when:
A more specialized skill exists for the specific subtopic
The request is outside the scope of house flipper
Questions to Ask First
What is your total available capital for this project (cash, credit lines, partnerships)?
Do you have experience with home renovation or construction?
What is your target market and price range?
Do you have reliable contractors already, or do you need to build a team?
Is this a full-time pursuit or a side project alongside other work?
What is your risk tolerance -- can you absorb a loss on your first project?
Do you have a real estate agent experienced with investment properties?
Have you researched local permit requirements and timelines?
What is your target timeline from purchase to sale?
Do you have a holding cost budget if the property does not sell quickly?
Phase 1: The 70% Rule and Deal Analysis
The 70% Rule
Maximum Purchase Price = (ARV x 70%) - Renovation Costs
ARV = After Repair Value (what the home will be worth fully renovated)
Example:
ARV: $300,000
70% of ARV: $210,000
Estimated Renovation: $50,000
Maximum Purchase Price: $210,000 - $50,000 = $160,000
The 30% margin covers:
Buying closing costs (1-3%)
Holding costs (mortgage, taxes, insurance, utilities during renovation)
Tier 2 - Mid-Level Renovation:
Everything in Tier 1 plus kitchen update (new counters, backsplash, appliances), bathroom updates, some mechanical work. Budget: $25,000-$60,000.
Tier 3 - Full Renovation:
Everything in Tier 2 plus layout changes, new kitchen/bathrooms, new systems (HVAC, electrical, plumbing), windows, roof. Budget: $60,000-$150,000+.
Match renovation level to the neighborhood. Do not over-improve for the area.
Get detailed written bid (not just a total number)
Verify no complaints with BBB or state consumer protection
Start with a small job to test reliability and quality
Bid Comparison Template
Project: ___________________
Contractor A Contractor B Contractor C
Company Name: ___________ ___________ ___________
License #: ___________ ___________ ___________
Insurance Verified: Y / N Y / N Y / N
Total Bid: $__________ $__________ $__________
Materials Included: Y / N Y / N Y / N
Timeline: ____ weeks ____ weeks ____ weeks
Payment Terms: ___________ ___________ ___________
Warranty: ___________ ___________ ___________
References Checked: Y / N Y / N Y / N
Payment Structure Best Practices
Never pay more than 10-20% upfront (for materials)
Structure payments based on milestones, not time
Hold 10% retainage until final punch list is complete
Pay for completed work only after inspection
Use a written contract specifying scope, timeline, materials, and payment schedule
