For a property flip I typically work off of about 4-month hold time.
However, it is important to note that the hold time depends a lot on market conditions because if a property sells quickly then obviously hold time will be considerably less.
In a hot market I’m allowing 4-months because:
- It takes me 4-6 weeks to renovate
- A couple of weeks to market and sell the property
- 28 Days for finance
- Another 28 days for settlement.
When it’s a cash offer, I’m often in and out of the deal in 2 to 3 months.
But at the same time, we must keep in mind that if the sale fell through, you’d need to re-sell the property and this lost time could add a month or more to your hold time.
But again, it’s important to realise that market conditions will determine how long it take to sell a property therefore you need to adjust your calculation for holding time accordingly.
