House flipping interest is at an all-time high, as easily evidenced by the popularity and huge number of flipping shows like Flip or Flop, Masters of Flip, etc. Unfortunately, what is missing from most of these shows is an aspect of reality, perhaps better represented in the show The Deed, where many of the shows misrepresent the actual profitability of the deals, and focus on selling the dream and the drama.
What these shows don’t tell you, is just how difficult house flipping is, how risky it is, and how your profits are determined by your ability to beat out other investors in finding the good deals, your knowledge, and your ability to properly assess the risk, costs, and profit potential of a deal.
How to flip a house?
This guide gives you the information that you will need before you can know how to flip a house. I will go into extensive detail of the different aspects of a real-estate fix and flip project. These include:
- Coming up with the right After Repair Value (ARV)
- Getting your rehab construction costs right
- Understanding the best way to order and schedule construction tasks
- Making sure you have accounted for all of your holding, purchase and sale costs
- Looking at how to determine your profit
Disclaimer: Real-estate in general, and flipping especially is very risky business. None of the following is deemed advice, your mileage may vary, and you have the potential to lose all of your money. We will not be held responsible for your use of this information in any way.
I'll start with a look at how to find comps and how to come up with an accurate After Repair Value (ARV). In real estate, the cardinal rule is that you should never let anyone else tell you what a property is worth, which means that you need to know how… Read more
I'll go into detail about how to come up with accurate rehab costs by helping you through the process of identifying a number of common house rehab items that you might need to think about doing in your fix and flip project, and what they should cost. Accurate rehab costs… Read more
One of the keys to a profitable flip lies in careful planning to tightly manage time. If you're flipping your first properties, however, your lack of construction project management knowledge can make it challenging in determining the most time efficient order of operations. Where do you start? You likely purchased… Read more
This post goes over the lengthy list of purchase, sale, and holding costs involved in a house flipping project, to give you a rough idea of how much you can expect to pay for each cost. This also includes the often forgotten Transfer Tax, which can sometimes be large enough to… Read more
The purpose of this post is to help you understand the deal analysis math behind the most important house flipping numbers, to ensure that your rehab project is going to be profitable. I'll talk about the math behind profit, and ROI, how to determine your maximum offer. Additionally I'll include some guidance… Read more
There are many creative ways to get funding for a house rehab project, some of which you may not have heard of. While you won’t always have access to all of these strategies, depending on your situation you could have funding options that you may not have considered before. Whenever looking… Read more