How to Flip a House for Profit

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By eHow Contributing Writer

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(8 Ratings)

Remodeling a house to make money can be quite an adventure. With common sense and elbow grease, flipping a house is not as difficult as it sounds. Flipping a house can make money in the real estate market if you follow simple guidelines.

Difficulty: Moderately Challenging

Instructions

Get to Know the Area

Step 1

Drive by the house you are interested in. Drive through at different times of the day and night and take note of people comfortable enough to sit outside or neighbors visiting; signs that it is a fairly safe neighborhood.
Step 2

Investigate local crime rates by checking with the local police department. It would be difficult to flip a house in a crime-ridden area, no matter how great the price is.
Step 3

Take note of neighboring homes and their condition. Homes in a generally unkempt manner denote a neighborhood that is going downhill. It would be difficult to flip a house under these circumstances.

Inspect the Home

Step 1

Invest in a Home Inspector if you are not experienced in remodeling. Accompany the inspector while he checks the home and make a list of problems he finds.
Step 2

Check the condition of major systems that would cost a large amount of money to repair, such as electrical systems, plumbing and sewer systems and the heat or air system.
Step 3

Check the structural bones of the house and look for any dry rot or termite damage. Check the roof for evidence of leaks or temporary patches. Determine if the roof can be reshingled or if it needs a whole new roof. Examine the foundation.
Step 4

List remodeling projects to be done which are only cosmetic. Take special note of the kitchen and bathrooms, as they are what can make or break a sale. Kitchen appliances can be very costly to replace. Note the water pressure in both the kitchen and bathroom. Flush the toilets and determine if any fixtures need to be replaced.

Calculate Cost of Repairs

Step 1

List repairs you can do yourself to save money, such as pressure washing the exterior, painting and landscaping. Other remodeling jobs you may be able to do on your own are drywall repair, installing new light fixtures and installing new floors. Those experienced in remodeling may also set tile, install kitchen and bathroom fixtures or put on a new roof.
Step 2

Make a different list of repairs to be done by contractors that require special knowledge, licenses or permits. Electrical, plumbing and roofing contractors can get the job done not only quickly, but safely.
Step 3

Price the materials for repairs you will be doing yourself. Make a list and take it to the "contractors" section of your local hardware store. The hardware store will give you a discount for buying all the supplies at their store.
Step 4

Determine additional labor costs that may be needed for some projects. A local licensed handyman can help when needed and will work for hourly wages. Neighborhood teenagers love a few extra bucks in their pockets too.

Determine

Step 1

Add the total costs to repair the house, including labor and materials. Set aside money for unforeseen circumstances you may encounter.
Step 2

Determine the approximate sales price you require to make money on flipping the house. Subtract the total cost from your estimated sales price. If you can make the profit you want after remodeling the house, then the house is flippable.
Step 3

Investigate how many days on the real estate market is an average for the type of house you are buying. Some houses are on the market for as little as thirty days while others have been listed for longer than six months. Have a back-up plan in place if your house doesn't sell right away.

Save Money

Step 1

Paint the kitchen cabinets if they are in good condition. Replace the knobs and hinges on the kitchen cabinets and they will look like new.
Step 2

Resurface bathtubs, hang new shower curtains, replace the toilet seat and fixtures in the bathrooms. You may also want to install new towel racks and paper holders. These simple remodeling jobs will add to the value of the house.
Step 3

Paint the appliances if you are not replacing them. Spray cans of appliance epoxy work very well, just practice on cardboard first, to get the gist of spraying.
Step 4

Decide what you will do with the floors. Installing new wall to wall carpet is not necessary. Most buyers will replace it with a carpet or floor of their choice. Flooring options include painting the floor and adding area rugs or laying hardwood floors.

Comments

InterFlip said

Flag This Comment

on 12/23/2008 All very good info. If you can apply it to work for you, it can be very helpful. I personally found the following information excellent, and I would highly recommend it!

http://www.squidoo.com/How-to-get-started-Flipping-Properties-for-Profit

astrosluke said

on 10/14/2008 If you really want to learn how to flip a house for a profit check this out. I followed these easy steps and
I have sold three houses in six months!

http://www.productsupplycenter.com/web101643

mpodlesny said

on 1/24/2008 Great tips, don't forget take into account your local real estate market. If the market is slow, you can do tons of upgrades and repairs and it won't matter if no one is buying.