Is Flipping Houses a Good Idea?

Almost everyone today has heard of flipping houses but is flipping houses a good idea? Depending on who you talk to or where you get your information from the answer to this question can vary greatly.

If you’ve watched any of the popular house flipping shows such as “Flip or Flop” or “Masters of Flip” you more than likely have a very positive and rosy outlook on house flipping as these shows tend to downplay the negatives or leave them out entirely and play up the positives such as big profits and before and after house transformations.

If however, you have talked to any hardened house flipping professional or friends or family that “knew someone who flipped a house” you might have a very negative impression of house flipping because of the horror stories you heard about nightmare properties, cost overruns, and falling down houses.

So who should you believe?

Honestly, there is a bit of truth to both scenarios, as with anything, there are both positives and negatives when it comes to house flipping.

While flipping houses is not a good fit for everyone, flipping houses can absolutely be a good idea.

Why Flipping Houses is a Good Idea?

There are many advantages and positives to house flipping and flipping houses. Below is a list of some of the top reasons why flipping houses can be a great business venture.

The Potential for Large Profit

While there is no guarantee on flipping house profits as many people have certainly lost money trying their hand at flipping. A professional house flipper that knows what their doing, has a plan in place, and executes their plan well can potentially make as much money flipping one house as many people might make for the whole year.

Just how big are those potential house flipping profits?

In the first quarter of 2019, the average gross profit margin for a house flip nationally was $60,000 per Atom Data Solutions which is certainly a lot of money no matter how you slice it.

Be Your Own Boss

When house flipping you call the shots and are your own boss. There is no manager looking over your shoulder or endless meetings to attend, just for the sake of having a meeting. Actually, after the potential for profits, the second most popular reason people get into house flipping is to escape the 9 to 5 rat race and being micromanaged to death.

As a word of caution though don’t mistake being your own boss for not having to put in the work. Many times beginning house-flippers are surprised at just how much work goes into flipping houses. While you can definitely be your own boss flipping houses be ready to put in long hours.

Flexibility and Freedom

House flipping allows you much more freedom and flexibility in your day to day life. While house-flipping is hard work and requires many long days it also allows for a lot of flexibility and freedom when setting up your schedule.

For example, as a house flipper, you may choose to work really hard to successfully complete a flip then take a month off once the flip is completed. Or maybe you want to see your kids off to school every morning so you delay the start of your workday. When flipping houses you have complete control of your daily schedule, allowing you to schedule around the things that are important to you and your life.

Making a Difference and Job Satisfaction

A common complaint in today’s compartmentalized working environment is that workers are not satisfied with their jobs and don’t feel like they are making any real difference. After all how much job satisfaction can you really have when all you do is answer emails and shuffle papers around your desk all day long.

The great thing about being a house flipper though is you not only get the satisfaction of working with your hands to complete a project but you actually get to see its completion from the beginning to the end.

When flipping houses you can take pride and actually see the results from all your hard work once the house flip is complete.

Negatives of Flipping Houses

It’s not all good news when it comes to flipping houses, as there are also potential negatives to house flipping. Below are some of the more common negatives when it comes to flipping houses.

Potential to Lose Money

Wherever there is a potential for big profits there is also a risk of losing money.

This is why it is so important when house flipping to know what you’re doing, have a workable plan, and use a detailed budget in order to stay on track to profits and not losses.

The house flipping world is littered with house flips gone wrong by starry-eyed wanna be house flippers who saw one too many house flipping shows on HGTV and thought house flipping was easy or tried to flip a home with no real plan or budget in place.

Steep Learning Curve

There are many aspects and steps to flipping a house and because of this, there is a lot to know and learn about when flipping houses.

Because of this when first starting out you must be committed and dedicated to learning as much as you can about every aspect of flipping houses. As a new house flipper, it can be a lot like trying to drink from a firehouse as there is so much to learn and figure out.

Labor Intensive

While it is possible and you should farm out some work depending on your DIY and construction skills, flipping houses can be a very dirty business that requires a very hands-on approach.

So if your someone who does not like to get their hands dirty or just doesn’t have any interest in working on houses you might want to reconsider if flipping houses is a good fit for you.

Conclusion

While as you can see there are both positives and negatives when it comes to flipping houses. As a house flipper myself, the answer to is flipping houses a good idea is a resounding, YES.

Can you think of any other positives or negatives to house flipping? Let us know in the comments.