Before we get into how to flip houses for a living you might be wondering if it’s really even possible to flip houses for a living? The answer to this question is a resounding yes and I am living proof its possible.
My Journey to Flipping Houses for a Living
To give you a little background on my own journey to flipping prosperity lets take a quick look at how I got started flipping houses for a living.
At an early age, I learned a lot about real estate investment thanks to my dad. Growing up my dad was always working on houses that he would buy cheap, renovate, then rent out for passive income.
After graduating from college I tried my hand at a few different jobs and entrepreneurial endeavors with limited success before turning my eye to real estate. At the time I had limited experience in real estate and no capital for real estate investment so I obtained a real estate license to help other people buy and sell homes.
Even though I was making a living as a real estate agent I never lost sight of my dream to become a real estate investor. In fact being a real estate agent opened my eyes even more to the possibilities of real estate investment, because I had a front-row seat as an agent watching people buy and sell homes for a profit.
So in 2014, with my dad as my partner, I made the transition from real estate agent to real estate investor. Now four years later I make my living completely from flipping houses and am living proof that it is entirely possible to make a living flipping homes.
Now that you know its possible to flip houses for a living let’s take a deep dive into how to flip houses for a living.
Start with a Plan
Any professional or seasoned flipper will tell you there is no such thing as an overnight success in the house flipping business. Because of this, you need to have a plan to keep you on track and motivated throughout your house flipping journey.
House flipping business plans can take many forms but there are a few items your plan must include in order to be complete including a mission statement, financials and numbers, timelines, and goals.
Mission Statement
To begin with, your mission statement needs to encapsulate what your goals and values are in your flipping business. It’s important not to skip this step in your plan as it will help you focus on your goals and how you plan to flip houses. An example of a real estate flipping mission statement might look like this, “To consistently buy distressed property at a discounted price to rehab and sell for a profit. In order to provide my community with a steady supply of quality and affordable housing”
Financials and Numbers
In order to run a successful house-flipping business, you have to have a good handle on the financials and numbers. To start with you need to figure out how much profit you need to make in order to flip houses for a living. This number is going to be different for everyone so you need to examine your personal expenses and bills to find out how much after-tax profit you need to pay the bills and have a life of abundance.
From there you want to work backward figuring out how many houses you need to flip to make the amount of profit needed. In order to do this, you need to know the average profit per flip in your area. You more than likely will not know this number in the beginning, so you can use the average gross profit margin of $29,342 for a flip in the United States as a ballpark number to get you started.
Another critical aspect of any house flipping business is capital. Capital is the lifeblood of any successful house flipping business so you need to know where the capital is coming from and where it is going in order to purchase and rehab homes successfully. As well as have a system in place for bookkeeping to make sure that you are staying in the black and out of the red when flipping houses for a living.
Other numbers you might want to include in your house flipping business plan include the monthly number of homes you plan on viewing and writing offers on when looking for your next flip. As well as how many hours you plan on working in your house flipping business.
Timelines
Timelines can take many different forms when talking about the house flipping business but a few you should pay attention to when drafting your house flipping business plan include the amount of time you plan on spending between the acquisition and sale of your flips, as well as the amount of time you plan on spending to rehab your homes.
House Flipping Goals
There is perhaps no greater driver of success no matter what business you’re in than setting and striving to obtain goals.
This is why it so important to make goal-setting an integral part of your house flipping business plan. Some goals to set might include a certain number of houses to flip in a year or a certain amount of yearly profit.
When house flipping goals can take many forms but no matter what your goals are you want to make sure they are actionable and specific.
Research, Research, Research
One of the most important steps before starting your real estate flipping business is to know the ins and outs of flipping real estate and to gain as much knowledge as possible about house flipping.
Research for your house flipping business can be broken down into three main categories including general knowledge about house flipping, information about your local real estate market, and finding local professionals to join your real estate team.
General House Flipping Knowledge
Before jumping into the house flipping business it’s important to lay a good layer of foundational knowledge about how to flip houses and how everything fits together. A couple of books that I read myself that do a great job of providing broad foundational knowledge about house flipping include Flip: How to Find, Fix, and Sell House for Profit and Flipping Houses for Dummies.
Beyond this reach out and learn from anyone you can that is in real estate or already flipping houses in your local market.
Local Real Estate Market Research
The next step in your research must include an in-depth thorough study of your local real estate market. When conducting this research you need to learn everything you can about your local real estate market including average sales prices, average days on market, what buyers are looking for, school system boundaries, and current inventory levels.
Basically, you need to become an expert on your local real estate market so that you can differentiate between a good deal and a bad deal when house flipping.
Building Your Team
Finally, the last step in your research needs to involve finding trusted local professionals to provide support for your house flipping enterprise.
Some good local professionals to have on your real estate flipping team include several trusted contractors and subcontractors, a local real estate agent with investment experience, and perhaps an attorney and or accountant to help with the business side of your house flipping business.
Getting Your Feet Wet in Flipping Houses for a Living
After you have developed your plan, thoroughly done your research, and secured the capital needed to flip your first house there comes a time when you just need to pull the trigger. Too many potential house flippers get stuck in analysis paralysis, spending years doing endless research and looking at house after house, only to never pull the trigger.
While there is nothing wrong with extra preparedness and some caution. The best way to learn the ins and outs of flipping houses for a living is to simply get started by flipping your first house.
Notice we’re talking about getting your feet wet in house flipping though, not jumping into the deep end, and hoping for the best. The fact of the matter is that flipping houses for a living and figuring out how to flip houses for a living can take time when first starting out.
In the beginning, when learning how to flip houses for a living income from house flipping can be very sporadic and inconsistent. Also, as a newbie house flipper, you will inevitably make some mistakes along the way perhaps leading to some thin profit margins and a steep learning curve.
Leading to my next point which is don’t quit your day job at least in the beginning. Most of us need consistent and steady paychecks to pay our bills and when your first starting out in the house flipping business pay can be anything but consistent. In fact, you could go 6 months or more without making any money when first starting out.
So, in the beginning, keep that day job to pay your bills while you’re getting your feet wet in the house flipping business.
Transitioning from Part-Time Flipper to Full Time Flipper
Once you have a few successful flips under your belt and have developed a consistent system for finding, rehabbing, and selling your flips it might be time to start thinking about transitioning into full-time house flipping.
There is no one right time to transition into flipping houses for a living. In fact, the time frame can vary greatly from person to person depending on their appetite for risk and their personal financial and family situation. However, there are some positive indicators that it might be a good time to consider transitioning into full-time house flipping.
Indicators You Might Be Ready For Full TIme House Flipping
- Developed a system to consistently find, rehab, and sell flipped properties.
- Replaced your existing regular income with house flipping income.
- Established at least a 1-year emergency fund to handle inconsistent paydays and profit.
- Have or secured ample capital for your house flipping business.
- Good track record of consistently selling flipped properties and making money flipping houses.
How to Flip Houses for a Living Conclusion
As you can see flipping houses for a living and learning how to flip houses for a living takes a lot of work and preparation but it is definitely something that can be accomplished.
If you think flipping houses for a living is something that you are interested in, the best thing that you can do for your future is to take the first step into the exciting world of houses flipping.
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