How to Start Fixing and Flipping Houses.

House flipping can be incredibly rewarding, but sometimes it is overwhelming to figure out where to start. That’s why we’ve put together a list of tips to get you started off on the right foot.

One of the most vital steps in your house flipping process is to determine which type of property fits your needs.

Pinpoint the Location.

What is your target area and why? What is the market opportunity? Is this area old or new? How is the housing market? When it comes to flipping houses, an area that you personally like may not be the best choice. Look into real estate data for the neighborhood and surrounding areas to guide you in selecting a property that has a good After Repair Value (ARV).

Identify Key Property Characteristics.

What type of property will you purchase? Know your ideal configuration before you start looking for a property. Some things to consider:

  • The age of the property: Is this a new or old building? This can help you determine possible hidden costs.
  • Type of home: Is it a single family home or attached? If it is attached, do you want a condo or townhome? Are there any special requirements before purchasing? Is the property managed by an HOA?
  • Outdoor space: Large or small yard? Covered patio? Pool?
  • Neighborhood: Urban, suburban or rural?
  • Bedrooms and bathroomsWhat is the most desirable bed/bath configuration for your target area and why?

Once you’ve identified the most important characteristics for your fix and flip project, you need to employ the appropriate methods to source that property.

Kick off The Fix and Flip Process: How to Find a House to Flip and What to Do Next

Multiple Listing Service (MLS).

MLS is the cream of the real estate crop when it comes to searching for available properties. It is a free service to those who wish to look through listings from realtors, brokers and other real estate experts. You can search for property locally or all over the world. If you do not have access to MLS, partner with a trusted real estate agent who knows the location well.

Real Estate Investment Association (REIA) connections.

The REIA is a useful source of information and education. Formed and developed by various real estate experts, you can brainstorm and learn from other professionals, as well as get a lot of information and insight on the do’s and don’ts of real estate investment.

Bank or Wholesaler?

Sometimes you can find exactly what you’re looking for through banks and brokers. Many foreclosures are diamonds in the rough and prove to be lucrative investments for a first-time flipper… but beware, not all foreclosures are good deals. Be sure to examine every aspect of properties in this category to ensure you are clear on all of the fixes (large and small) and the remodel expenses that come from acquiring it.

Drive Around Desired Neighborhoods.

You can sometimes find “Bank-owned” or “Foreclosure” realtor signs in the yards of homes that are in foreclosure. By driving through the area(s) you are most interested in, you may just get lucky.

When You’ve Found a Property, Here’s What to Do Next.

  • Do a complete initial walkthrough. Take note of the items that need replaced, repaired or updated.
  • Get an inspection. Have the home inspected to protect yourself from unseen expenses.
  • Create a project estimate. Evaluate the work you need to do, how much it will cost and how long it will take. This will help you forecast and plan.
  • Make an offer. Stick firmly to your set price and budget. Remember, this is an investment. Don’t jump into something you can’t afford due to excitement and watch negotiations with a keen eye on your estimated profit.

These tips should help you get started. Get educated on the complete house flipping process and learn how to make informed and educated decisions as you begin your house-flipping career.