I noticed the best deals of course are on the crappy houses that no one wants that need close to full restoration to sell and make a profit but if you are an average joe working alone, no connections (plumbers, construction crew, painters, etc, etc) is it even advisable.
I been in the used car business for many years now, i am self employed, buy vehicles at dealer auctions and sell them private party and also have them on consignments and a local used dealer lot, now days i got good at what i do and do my best to buy vehicles that just need a detail and ready to sell, still just in case i have connections with body shops, mechanics, detailers that are reliable and give me good deals.
I know other guys that do the same as me but buy vehicles that need cosmetic or mechanic work, of course they buy those at much cheaper price , i rather my method as over time i learned its less of a head ache and my profits are the same as theirs or sometimes more.
Jimmy, your car rule carries over well: the ones that "just need a detail" are the safer buys, and the cheap ones are cheap for a reason you can't always see.
The difference with houses is that the expensive problems hide better. On a car you can put it on a lift. On a house, the big money is in water damage, structure, sewer lines, and wiring behind the walls, and you often won't know until demo. So if you start without a crew:
- Stick to houses where the roof, foundation, plumbing, and electrical are in decent shape and the work is mostly cosmetic.
- Before you buy, get the scope written down line by line, must-do items separate from finishes. A single lump number from one contractor tells you very little.
- Get two or three bids on the same written scope so you're comparing the same job, not three different guesses.
- Pay for work that's done, not work that's promised.
Your first deal is mostly about learning which contractors show up. Do that on a house that can't hurt you much.
Of course it's possible. Beautiful part about Real Estate is you can build a team. Social media has made it a lot easier. I would start with attending local meet ups and reaching out to various contacts. Sit down with people. You need people on your team to make head way.
Totally doable, but I'd start smaller than a full gut rehab. Your car business is actually the same skill, buying right and knowing your numbers, so you already have the hard part.
I'd look for houses that need cosmetic work only, like paint, floors, kitchen and bath updates. Those are the flips where you can use one or two reliable contractors and not a whole crew. Get 3 bids on every job and build in 10 to 15 percent extra for surprises.
Run the 70 percent rule as a starting point, so ARV times 0.70 minus repairs. On a 400k ARV with 50k of work that puts you around 230k max. Start with one deal and let that contractor relationship carry you to the next one.
Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 165 posts · 58 votes
I noticed the best deals of course are on the crappy houses that no one wants that need close to full restoration to sell and make a profit but if you are an average joe working alone, no connections (plumbers, construction crew, painters, etc, etc) is it even advisable.
I been in the used car business for many years now, i am self employed, buy vehicles at dealer auctions and sell them private party and also have them on consignments and a local used dealer lot, now days i got good at what i do and do my best to buy vehicles that just need a detail and ready to sell, still just in case i have connections with body shops, mechanics, detailers that are reliable and give me good deals.
I know other guys that do the same as me but buy vehicles that need cosmetic or mechanic work, of course they buy those at much cheaper price , i rather my method as over time i learned its less of a head ache and my profits are the same as theirs or sometimes more.
You learned how to be profitable buying at car auctions and selling to the publice, house are just the same. Sometimes people need help along the way to get started, thats all. It isn't special. We focus on buying below cost and doing small amounts of fix ups. It's not a lot different than what you do.
@Jimmy Rojas Your car-business experience is actually a great comparison. The cheapest purchase isn’t always the best deal once you factor in repairs, delays, surprises, and your own time.
If you’re working alone without a reliable contractor network, I wouldn’t start with a full restoration. Those projects can be profitable, but one bad estimate, permit issue, or unreliable crew can wipe out the extra margin quickly.
I’d follow the same approach that works for you with vehicles: target structurally sound houses needing mostly cleaning, paint, flooring, landscaping, and minor updates. The purchase discount may be smaller, but the project is easier to price, finance, and complete.
Meanwhile, build your network before taking on heavier rehabs. Meet contractors through local investors, get multiple bids, verify licenses and insurance, start with small jobs, and keep a healthy contingency. You don’t need the “crappiest” house to make money—you need a property whose risks you can accurately understand and manage.
Jimmy, I actually think your vehicle business experience gives you a pretty good framework for this. You already understand that buying something just because it's cheap isn't enough if you don't have reliable people to get the work done.
With real estate, I'd probably start the same way: buy projects where the numbers work without assuming everything will go perfectly. As you build relationships with contractors, you can take on heavier rehabs later.
The other thing I'd think about before getting too far into flipping is the tax and business structure. If you start doing multiple flips a year, I'd want to evaluate whether an S-Corp makes sense based on the profit, volume, reasonable compensation, payroll costs, and your overall situation.
And if you eventually start keeping some properties as rentals, I'd keep the active flipping business and long-term rental portfolio clearly separated. The tax treatment can be very different.
For a first flip, I'd focus on finding a deal where you don't need a perfect contractor network to make the numbers work. Build the team as you go.
Feel free to DM me, I’d be happy to send over a few resources that might be helpful.
@Jimmy Rojas I think you can, I just wouldn't start with a full gut. I didn't have a crew when I started either. My first one was a house we lived in and redid, and I found people one at a time. What worked for me was giving a new contractor a small job first and seeing how they handled it before trusting them with anything big. Your car business already taught you the main thing, which is that the money's made when you buy. Same with houses. Overpay and the rehab can't fix it. Good luck with it.
Jimmy, it's doable without connections, but I'd build the team before buying the house. Get bids from two or three contractors on a real property so you learn pricing, line up your financing first (fix and flip lenders typically fund part of the purchase and the rehab in draws, so you'll know your cash needs up front), and have an agent pull comps so your ARV is real. Your first flip should be a light cosmetic one, not a full gut. I'm a lender and we also run a construction company, so I see a lot of first flips. Happy to walk through how the financing works on a quick call, my direct line and email are on my profile.
Jimmy, your car rule carries over well: the ones that "just need a detail" are the safer buys, and the cheap ones are cheap for a reason you can't always see.
The difference with houses is that the expensive problems hide better. On a car you can put it on a lift. On a house, the big money is in water damage, structure, sewer lines, and wiring behind the walls, and you often won't know until demo. So if you start without a crew:
- Stick to houses where the roof, foundation, plumbing, and electrical are in decent shape and the work is mostly cosmetic.
- Before you buy, get the scope written down line by line, must-do items separate from finishes. A single lump number from one contractor tells you very little.
- Get two or three bids on the same written scope so you're comparing the same job, not three different guesses.
- Pay for work that's done, not work that's promised.
Your first deal is mostly about learning which contractors show up. Do that on a house that can't hurt you much.
@Jimmy Rojas your car background is honestly a head start. Buying right and knowing your exit is 90% of flipping too. I'd do exactly what you do with cars: skip the full guts at first and go after houses that need paint, flooring, fixtures, and maybe a kitchen refresh. That way you only need one or two solid contractors, not a whole crew.
One thing I'd add that people miss is checking how saturated the area is before you buy (one of the top things I am checking for my clients on top of final (conservative) ARVs). Have your agent pull how many similar homes sold in the last 3–4 months vs. how many are active right now. If there are 2 or 3 actives for every sale, your flip is going to sit, and holding costs eat the profit. I am also a data guy and have pulled sold statistics in San Antonio over the last couple years and listing price matters more than just the headline number - it is how buyers filter (because I set up these automated searches regularly)
E.g. Listing at if I had to chose between listing at $299k, $300k, or $300.5k, I would pick $300k because that nice, round number is what people cut off their listing search at until they hop up to the next bracket which is most commonly $325k
If you end up looking in San Antonio, I'm an investor-friendly agent here and happy to pull those numbers for you.
P.S. One last thing to mention, I would have a contingency plan for the property, if after <your market average days on market> or a certain amount of time you set beforehand passes, make sure it would work for you as a long term rental and hold it until you decide to sell in the future. Worst case scenario in your transition to real estate, you end up with a rental property that is a "golden child" (Richest Man in Babylon reference)
Partner with a flipper. Give up a deal for a fee or for the experience. Do a "paper trade" run the job through with your expectations and someone else's pocket book. Then figure out what your tolerance is. This will also give you access to the "crew" or "subs" you need. rarely does one flipper keep a sub busy. They are always looking for more work.
You already figured out the hard part with cars, buy the ones that just need a detail haha. Houses work the same way, paint carpet and fixtures, and leave the full gut jobs to the guys with a crew. Get an inspection on every one tho, the stuff that kills flips is usually behind the walls.
Hey Jimmy, sent you a request to connect! I work with a wholesale team here in AZ and we source distressed property for investors like yourself of all levels. I get a lot of off market deals in the Phoenix Metro! Happy to be a resource, good luck with everything.