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Everything you need to know to flip your first house — from finding the deal to cashing the check. No fluff, just the real playbook that working investors follow.
House flipping is one of the fastest paths to building real wealth in real estate. But if you skip the fundamentals, it's also one of the fastest ways to lose money. This guide walks you through every step — from understanding what fix and flip means to selling your first property for profit.
Fix and flip is a real estate investment strategy where you buy a property below market value, renovate it to increase its value, and sell it for a profit. The entire process typically takes 3-6 months.
Here's the simple math:
The catch? Those numbers have to be right. If you overpay, under-estimate rehab costs, or overshoot the After Repair Value (ARV), your profit evaporates. That's why deal analysis is the most important skill in flipping.
The best deals are the ones other people don't know about. Here are the most reliable deal sources for beginners:
Work with a real estate agent who understands investing. Filter for properties with high days on market (DOM), price reductions, and keywords like "as-is," "handyman special," or "investor opportunity."
Wholesalers find off-market deals and sell them to investors at a markup. Join local REI (Real Estate Investor) Facebook groups and attend meetups to build your wholesaler network.
Drive through target neighborhoods and look for signs of distress: overgrown yards, boarded windows, code violation notices. Skip trace the owners and make direct offers.
County foreclosure auctions, tax lien sales, and platforms like Auction.com can yield deals below market value. Warning: many auction properties can't be inspected before purchase.
Beginner Tip: Start by analyzing 100 deals before buying one. Use our free deal calculator to practice running numbers. You'll develop an instinct for what makes a good deal.
Every experienced flipper uses some version of the 70% rule to quickly screen deals:
The 70% Rule Formula
Max Offer = ARV × 70% − Rehab Costs
Example: If ARV = $280,000 and rehab = $45,000, then max offer = $280,000 × 0.70 − $45,000 = $151,000
The 70% rule ensures you have enough margin for profit, closing costs, selling costs, and a contingency buffer. Use our 70% rule calculator to run the math instantly.
Inaccurate rehab estimates are the #1 profit killer for new flippers. Here's how to get it right:
Walk the property room by room and categorize the work needed into three levels:
| Item | Cosmetic | Standard | Full Gut |
|---|---|---|---|
| Kitchen | $3,000-5,000 | $10,000-20,000 | $25,000-50,000 |
| Bathroom | $1,500-3,000 | $5,000-10,000 | $12,000-25,000 |
| Flooring (per room) | $500-1,500 | $1,500-3,500 | $3,000-6,000 |
| Interior Paint (whole house) | $2,000-4,000 | $4,000-7,000 | $7,000-12,000 |
| Roof | — | $5,000-10,000 | $10,000-20,000 |
| HVAC | — | $3,000-6,000 | $8,000-15,000 |
Use our free rehab cost estimator to build a detailed room-by-room budget with built-in contingency.
Most beginners don't have $200,000+ in cash sitting around. Here are the most common financing options:
Your contractor can make or break your flip. Here's how to manage the process:
FlipLogic includes project management with Gantt charts, draw schedules, budget tracking, contractor management, and built-in eSign for contracts — all in one platform. Start your free trial.
The sale is where you cash in. Maximize your selling price with these strategies:
Fix and flip means buying a distressed property at below market value, renovating it to increase its value, and selling it for a profit. The process typically takes 3-6 months.
With hard money financing, you can start with $30,000-$50,000 for the down payment, closing costs, and reserves. Some investors start with less using partnerships or creative financing.
Like any investment, there's risk. The biggest risks are overpaying, underestimating rehab costs, and market downturns. Minimize risk by following the 70% rule, getting accurate rehab estimates, and always having an exit strategy.
Start with our free tools: Deal Calculator, Rehab Estimator, 70% Rule Calculator, and ARV Calculator. When you're ready for the full operating system, try FlipLogic free for 14 days.