Did you know that 5.9% of home sales in 2020 were from house flippers? While house-flipping has been popular for decades, there has been a huge increase in house flipping after the release of popular home improvement television shows.

If you know what you are doing, house flipping is a great source of income and can replace a full-time job. Whether you are new to the idea of house-flipping or you have been researching it for years, you need extensive knowledge to start flipping houses.

Do you want to learn more about buying and flipping houses? If so, keep reading to learn all about house flipping for beginners.

What Is House Flipping?

If you want to learn more about flipping houses, you first need to understand what house flipping is. In simple terms, house flipping is the process of buying a property that needs updating, doing the updates, and then selling the house for a profit.

The best houses to buy are ones that are older, need cosmetic updates, and are for sale at an affordable price. Once you buy the house, you can do renovations to increase the property value.

These renovations can include installing new flooring, updating the kitchen, painting the walls, adding new lighting, and renovating the bathrooms.

How much money you spend will depend on several different factors, including location, current property value, property size, and the condition of the home. When house flipping, completing the project as quickly as possible is ideal.

Why Do People Flip Houses?

The biggest reason why people flip houses is to make money. While some people invest in property and sell it later on, that method is a slow way to make money. Flipping houses allows you to make a giant lump of cash in a short amount of time.

While flipping houses is a great way to make money, it is hard for people that work a full-time job. Flipping a house is an intense project that will consume a lot of your time. But, some people turn house flipping into their full-time job.

If you would prefer to buy a property and hang onto it, there are still benefits to flipping a house first.

When flipping a house, you can buy the house with no deposit. After you flip the house, you can use the money as a down payment on your long-term property.

How to Flip a House

Now that you know what house flipping is, do you want to learn more about the process of flipping a house? If so, this is the guide for you. House flipping is a complicated process that takes knowledge of finance, real estate, construction, and design.

Here are some of the steps you should take to flip a house:

Educate Yourself on House Flipping

Before you decide to flip a house, you need to educate yourself on the process. If you don’t have the right education, you risk losing a lot of money.

House flipping has high rewards and high stakes. Not having enough knowledge is one of the main reasons why house flippers fail.

Without the proper education, you won’t know how to finance the house, you won’t make good design decisions, and you could run into legal trouble.

Before you commit to buying a house to flip, you should make a house flipping business plan. The business plan should include how you are going to educate yourself, the cost to flip a house, your timeline, and the steps you are going to take to complete the process.

Research the Market

Once you have a good understanding of what it takes to flip houses, you can start researching the market. You need to choose a neighborhood based on home prices, how fast houses are selling, and which houses are selling quickly.

Spend as much time researching the area as possible. You can do research online and ask local real estate agents. They will know if buying a flipped house in that neighborhood is common.

Get Help

Once you have a good idea of the market, it’s time to get help. You can’t complete the entire process of flipping a house on your own. You need to find an investor, a real estate agent, and contractors to help you complete the work.

Find the Right House

The next step in the process is finding the right house to flip. You should look for a house that is within your budget, has great potential, and is the cheapest in the neighborhood.

Finding the right house is difficult, but don’t rush the process. Because you are dealing with such a large amount of money, take as long as you need.

Once you do find the right house, work with your real estate agent to place an offer. You may have to negotiate with the seller on the price. Once they agree to an offer, you own the house!

Complete the Project

The last thing you need to do to complete your project is to renovate the home and sell it. When renovating the house, you should choose designs that are appealing to most people. Most people like neutral colors, but don’t be afraid to add some color.

When it’s time to sell the house, make sure you make the home as inviting as possible. The house should make a good first impression with landscaping, staging, and a clean smell. Once you sell the house, you can start your next flip!

Are You Ready to Start Buying and Flipping Houses?

Flipping a house is a great way to make a large lump of cash at once. You also could turn house flipping into a career. If you are thinking about buying and flipping houses, be sure to keep these tips in mind before you get started.

Did you enjoy reading this guide on flipping houses? If so, check out the home tips category for more advice!