How do I start House Flipping???

Question

what are the questions I need to answer to begin my first ever home purchase/house flip?? I'm setting ambitious goals for next year and want to flip a house to gain experience and fund my college tuition, but I have no Idea where to start.

I know it will either be in my home of Minnesota, or in southern Idaho where I'm going to school but that's as I know where to go.

Randall Alan · Answer

Question 1: can you find a house at a price that is cheap enough to purchase, where when you add the cost of repairs, and you can sell it for a descent profit (for us $50,000 - but pick your number), plus have an additional cushion of maybe 20% in case you miss something or your project goes over budget?

Question 2:  where are you going to get the money to BUY the house?

Question 3:  where are you going to get the money to FIX the house?

Question 4:  will someone buy your repaired house with interest rates the highest they have been in at least a decade?

I would start with those!  It’s really not a great time to be flipping, but that’s not to say it can’t be done… but you need a great deal.  For us it’s not worth the effort to make $10,000 if you have to risk / invest say $100,000+.   Too many things can go wrong.  I do think that housing prices will fall and it will be more of a buyer’s market in 2023… which works for you on the front end of the flip - but less so on the back end.

All the best!

Randy

Nicholas L. · Answer

@Jackson Neu

don't do this.

house hack instead.

Chris Barnhill · Answer

Been doing house flipping for over 20 years. It is okay but every body and their brothers are doing it. The margins are tight and the home runs are too far and in between. Skip residential and go to commercial. I think that is the way to go. And when I say commercial that can be anything but residential.

James Hamling · Answer

First question to answer: Who is providing the giant pile of $$$$ flipping will require?

Second: How will you afford it when everything costs 2X-4X what you thought it would?

Eliott Elias · Answer

You need a good deal, 70% minus repairs. After that options open up for you and you can toy with different ideas.

Ryan Cleary · Answer

I too would like to get into flipping in the near future but it would be coming from a position of strength (having a decent portfolio of long-term rentals)

Maybe starting out you can try a live-in flip!  My fiancee and I successfully completed a live-in flip and it put us in a fantastic position

Nathan Gesner · Answer

A lot of people fail with flips, or at least have a hard time getting started, because they fail to properly account for how much it will cost or how long it will take. When they go to sell, the property may not sell for as much as they think. You need all three things to go right. This can be tough when you are brand new and the market is stagnant and possibly reversing.

I think you may be better off partnering with an experienced flipper that can teach you the ropes in exchange for labor. Let them take the risk while you learn the skills.

Paul Meyer · Answer

and after selling property hopefully not have lost money!!! lol Chris Barnill might be on to something because I agree margins are tighter than flip shows publicize.

Ramandeep Sidhu · Answer

Congratulations on setting ambitious goals for next year! House flipping can be a great way to gain experience in real estate and potentially generate income. Here are some questions you should consider as you begin your first home purchase/house flip:

• What is your budget for the purchase and renovation of the property? Make sure to factor in the costs of repairs, updates, and any other expenses that will be incurred during the flipping process.
• What is the real estate market like in the area where you are considering flipping a house? Research sale prices of similar properties, as well as the demand for rental properties or homes for sale in the area. This will help you determine if flipping a house in a particular location is a viable option.
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• How much time do you have to dedicate to the flipping process? Flipping a house can be a time-intensive process, so it's important to consider how much time you have to devote to it.
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• Do you have the necessary skills and knowledge to complete the renovations yourself, or will you need to hire contractors? If you will be hiring contractors, it's important to do your research and find reliable professionals who can complete the work within your budget.
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• Have you considered the possibility of partnering with an experienced investor or mentor? Working with someone who has experience flipping houses can be a great way to learn the ropes and avoid common mistakes.
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Good luck with your ambitious goals for next year.

Carlos Ptriawan · Answer

you need to have trusted contractor, really really really trusted contractor. the flip part is the easy part.

How do I start House Flipping???

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