Fix & Flip Deals: The Best Ways to find Houses to Flip
A successful fix and flip begins with spotting a property that is undervalued, outdated, or neglected. The goal is not to buy cheap and gamble. The goal is to buy smart and make improvements that raise the home’s value.
Investors who do well follow a clear process: find the deal, line up financing, renovate strategically, and sell before holding costs cut into profits.
1. Find the Right Property
Not every property is worth flipping. The sweet spot is a house priced below market that only needs cosmetic or moderate work. Outdated kitchens, worn-out bathrooms, or old paint can all be turned into opportunities.
The flips you want to avoid are the ones with serious foundation issues, extensive water damage, or structural problems. Unless you’re experienced with heavy rehabs, those repairs take too long and burn through your budget. Stick to projects where the math is predictable and repairs are visible. Architectural Digest points out that buyers rarely care about things like foundation or plumbing when touring a house, but if you don’t fix them, they’ll kill your profit before the house even hits the market.
2. Foreclosures
Foreclosures can be a goldmine for fix and flip investors. Banks want to recover their money quickly, so they often sell these properties below market value. That usually means discounts and quicker sales. You can find them through foreclosure auctions, REO (real estate owned) listings, and specialized websites like RealtyTrac or Auction.com. These properties can look like jackpots, but you need to budget for the fact that many are in rough shape.
One angle smart investors use is targeting pre-foreclosures. That’s when a homeowner is behind on payments but hasn’t lost the house yet. If you step in early, you can negotiate a purchase directly and avoid the chaos of an auction.
3. Tax Sales
When property taxes go unpaid, local governments sometimes sell the property at auction. These homes can come at a discount, but be careful. Some carry liens or other legal issues.
Always research the property before bidding. Check county records to see if there are back taxes or unresolved issues attached to the home. Some investors recommend starting small with tax lien certificates instead of buying the actual property. This process is lower risk and helps you learn the process without betting everything on your first try.
4. MLS (Multiple Listing Service)
The MLS remains one of the most reliable sources for deals. A good real estate agent can help you spot homes that have been sitting unsold for too long. Many investors look for listings with poor photos or vague descriptions because they are often overlooked by other buyers.
Another strategy is to search MLS with specific filters. Words like “as-is,” “fixer,” or “needs TLC” in the description usually mean opportunity. On top of that, keep an eye on listings that were pulled off the market and then re-listed. Sometimes sellers lower the price after months of frustration, which is your opening
5. Expired Listings
Expired listings are worth chasing because they often involve frustrated sellers who are ready to make a deal. When a listing times out on MLS, it usually means the home didn’t sell at the price the owner wanted. But that doesn’t mean it’s a bad property. It might just need some cosmetic updates or a fresh approach.
Investors can work expired listings by sending letters, making phone calls, or connecting through agents. A personalized message stands out more than a generic offer.
6. Leverage Your Network
Some of the best deals never make it online. Contractors, real estate agents, lenders, and even friends often know about distressed properties before they hit the market. If people in your circle know you’re looking, they’ll bring opportunities to you first. Building those relationships takes effort, but it pays off.
Networking also means staying active in local real estate meetups or investor groups. Many wholesalers and flippers share leads or partners on deals.
7. Public Records
Courthouses are full of leads if you know where to look. Divorce cases, probate filings, or code violations can all signal motivated sellers. Checking these records gives you a head start on properties before they are widely advertised.
Probate properties, for example, often involve heirs who don’t want the home and would rather sell quickly. Similarly, homes with repeated code violations may signal owners who can’t afford repairs. These are situations where a flipper can step in with a fair offer and close quickly, helping both sides.
8. Location is Everything
You can fix a house, but you cannot move it. The neighborhood will always matter more than the finishes inside. Buyers pay more for safe areas, strong school districts, and access to shopping and jobs. Look for neighborhoods where values are trending upward.
A good strategy is to buy just outside of hot neighborhoods. These areas are often more affordable but still benefit from the growth of the nearby market. Zillow research shows that homes in “emerging neighborhoods” appreciate faster than the city average, which gives you an extra edge when it’s time to sell.
Financing & Purchasing
1. Secure Financing
Once you find a property, you need money to move on it. Traditional bank loans can be slow, and they may not work well for distressed homes. Many investors use bridge loans or hard money loans because they close fast and give flexibility.
Here is a quick comparison:
| Financing Type | Speed of Approval | Best For | Main Challenge |
| Bank Loan | Slow (weeks) | Standard homes | Hard to get for distressed properties |
| Hard Money Loan | Fast (days) | Quick flips | Higher rates |
| Bridge loan | Fast (days) | Fix and flip | Short-term only |
Having financing lined up before you make an offer makes you a stronger buyer. Sellers prefer someone who can close quickly over someone waiting for approval.
2. Make an Offer
When the right property shows up, do not hesitate. Base your offer on real numbers, not emotion. Factor in repair costs, holding costs, and your expected sale price. The math should leave you with a comfortable profit margin.
Use the 70% rule: don’t pay more than 70% of the after-repair value (ARV) minus estimated renovation costs. This keeps your profit margin safe and covers unexpected surprises.
3. Inspection
Even if you plan to gut and remodel, never skip the inspection. A small leak or hidden wiring issue can become a big surprise later. Knowing what you are buying helps you stay in control of your budget.
First-time flippers often underestimate repair costs, and skipping inspections only makes that worse. Pay for the inspection. It’’s a small expense that can save you thousands in the long run.
4. Close
Closing finalizes the deal. This is where the title gets transferred and your financing is completed. Make sure the title is clear, liens are settled, and your financing is in place. A messy closing can delay your project and rack up holding costs before you even swing a hammer.
Having a reliable title company or closing attorney on your side helps avoid surprises. Double-check every document, because once you sign, you own the problems along with the house.
5. Make Improvements (The Fix)
Renovations are where you add value. Focus on updates that buyers care about most. Kitchens, bathrooms, and flooring usually give the best returns. Fresh paint and modern fixtures go a long way too.
Keep in mind that overspending can backfire. Match the upgrades to the neighborhood so your home does not outprice the market.
6. Sell at a Profit (The Flip)
After the repairs are done, it is time to sell. A skilled real estate agent can help you list the home with strong photos and staging. Price it to move quickly. The faster you sell, the less you spend on interest, taxes, and insurance.
Work with an agent who understands flippers. They’ll know how to highlight the renovations you made and position the property for a quick sale. Small details like landscaping and curb appeal can help buyers form a positive impression before they even step inside.
Fix and Flip Mistakes to Avoid
Even seasoned investors slip up. These are the most common errors:
- Paying too much for the property at the start.
- Underestimating renovation costs.
- Buying in a weak location.
- Letting projects drag on too long.
- Ignoring financing costs that pile up month after month.
Avoiding these mistakes comes down to discipline. Stick to your numbers, keep timelines tight, and always factor financing costs into your budget.
FAQs About Fix and Flip
How much money do I need to start flipping houses?
It depends on the property and your financing. Some investors use bridge loans to cover most of the cost, while others put down a larger chunk of cash. In general, you should plan for both the purchase price and renovation budget.
What is the average profit on a fix and flip?
Profits vary, but many investors aim for at least 15 to 20 percent after all costs are paid. The real number depends on the property, location, and how well you control expenses.
How long does a flip usually take?
Most flips run between three and six months. Larger renovations or delays with permits can stretch the timeline. The faster you finish, the less you spend on carrying costs.
Can beginners be successful at flipping?
Yes, but only if you do your homework. Work with experienced contractors, have your financing in place, and stick to properties that need cosmetic updates instead of major structural repairs.
Ready to Start Your First Flip?
Fix and flip investing is not about luck. It is about knowing the process and moving fast when the right property comes along. If you are ready to take action, RTI Bridge Loans can provide short-term financing such as fix and flip loans that will help you secure deals quickly and confidently. Call us today at (562) 857-2285 to get started.
