House Flipping & Fix-and-Flip
Buy distressed properties, renovate, and sell for profit
Overview
House flippers typically profit $20,000-$60,000 per flip after renovation and holding costs.
Completing 6-15 flips annually generates $150,000-$700,000 with deal flow and capital determining volume.
In 2025, opportunities exist buying distressed properties below market, renovating efficiently, and selling at retail prices.
Successful flips involve buying properties at 65-75% of ARV (after repair value), budgeting renovations accurately ($30-$60 per square foot for cosmetic, $75-$150 for major rehabs), completing renovations in 60-90 days, staging and marketing effectively, and selling within 120 days to minimize holding costs.
Keys to profitability include accurate ARV estimation, tight budget control, efficient contractor management, and strong financing.
Most flippers use hard money loans (10-14% interest) or private money.
Risk includes overestimating ARV, renovation overruns, extended holding times, and market downturns.
Best markets have strong buyer demand and inventory of distressed properties.
Can start with one flip using savings, home equity, or partners.
Scale by building contractor teams, raising private money, and doing 2-3 simultaneous flips.
Required Skills
- Property Valuation
- Renovation Management
- Contractor Coordination
- Real Estate Finance
- Project Management
- Market Analysis
Pros and Cons
Pros
- Potential for significant profits per deal
- Active income not dependent on appreciation
- Learn valuable real estate and renovation skills
- Can scale to multiple simultaneous projects
- Exciting transforming properties
Cons
- High capital requirements per deal
- Market and renovation risks can eliminate profit
- Time-intensive managing contractors and projects
- Holding costs eat profit if property doesn't sell
- Competitive market in many areas
How to Get Started
- Educate yourself on house flipping and renovation costs
- Analyze 100+ deals to understand your market
- Secure financing (hard money, private money, cash)
- Find first deal at 65-75% of ARV
- Budget renovation accurately and hire contractors
- Complete renovation in 60-90 days
- Market property and sell within 120 days total
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