The Thrill of Transformation: Flipping Houses for Profit

Flipping houses is all the craze. It’s exciting to see the transition from a beat of house to one that is the star of the block. I’ve always been intrigued by flipping and definitely think it’s something get into in the future. In this post, I’d like to share a property that I came across on Zillow. This house would be a flip and I’d like to show you how to see if it will be profitable or not. 

This house was just recently listed and it needs some work. The exterior is what looks most frightening as the siding has seen lots of mold and deterioration over time. The garage specifically looks horrific. Here are some photos:

The interior doesn’t appear to be too bad. From the pictures, the bones look to be fine but it just needs a lot of cosmetic work. The kitchen however does need some more work and would likely benefit from opening up a wall or two if it is possible. The house would need new flooring, paint, lighting, and updates to both bathrooms. 

The home is listed for $95,000 and to be honest, I am not entirely sure of the exact rehab estimate. This is an area where I need a lot of improvement to learn how to estimate costs. I feel that with time and experience, this will come easier. I want to be transparent with you all to know that I do not currently have the ability to estimate an accurate rehab. For this reason, I will budget a rehab of $100k as a broad number and I’ll share more with you on this in a minute.

The reason I see this being an excellent flip is because of the comps in the area. Similar fixed up properties that have sold recently are going from the $230s and up. Rental rates are only $1,200 so this property appears to be more profitable as a flip. Looking back at that 100k budget, this would still put us with a nice profit of at least $40k. So as long as this home can be rehabed in under $100k, this property has the potential to bring home a profit.

The area seems to have many flips and looks like it will see more progress in the future. To me, this seems like a solid flip. Let me know what your thoughts are and how you would approach this deal. Would you flip it or pass on to find another deal?