How to find houses to flip

Real estate investing can be an exciting way to bolster your income, but finding the right property takes time and strategy. Whether you're a beginner looking for your first fix-and-flip house or have years of experience, knowing where to find houses to flip makes all the difference. While house flipping can offer strong financial returns, it also carries real risks like renovation costs, unexpected repairs, and changing market conditions. Planning ahead helps you confidently navigate these challenges.

Key takeaways:

• You can search online platforms like the MLS and Redfin using specific keyword filters and alerts to find opportunities.
• Finding off-market homes can help you avoid steep bidding competition.
• Evaluating your budget, location, property condition, market trends, and exit strategy before buying is key to managing risk and protecting your bottom line.

What is house flipping?

House flipping is a form of real estate investing that involves buying a home, making improvements or repairs, and reselling it for a potential profit. You'll often hear investors refer to the target property as a fix-and-flip house. Successful projects usually depend on choosing the right location, building a realistic renovation budget, and understanding your local housing market.

Before buying, you'll need to estimate the home's after-repair value (ARV), which is what the property could sell for once all updates are finished. You'll also want to balance the purchase price and renovation costs against potential market risks. Flipping can range from quick cosmetic updates like new paint and flooring to structural overhauls like replacing a roof or plumbing system.

How to find houses to flip online

Using online platforms is one of the easiest ways to start your search. By using key listing signals and filters, you can spot properties with high potential right from your phone or computer.

Search MLS listings

The multiple listing service (MLS) is an online platform that compiles property listings. Many investors search MLS listings to find homes priced below comparable properties in the neighborhood or marked as needing work. Working with an agent gives you direct access to these listings as soon as they hit the market.

Use Redfin keyword filters

When you search on real estate sites like Redfin, try using keyword filters to find properties that need extra love. Searching for specific terms like "fixer-upper," "TLC," "handyman special," "as is," or "estate sale" can help you quickly filter out move-in ready homes and focus on potential flips

Set Redfin alerts

Great deals move fast, so staying ahead of other buyers is key. You can set up notifications or alerts that let you know when a distressed property or new listing hits the market. Setting alerts ensures you won't miss out on time-sensitive opportunities.

Review days on market

Pay close attention to how long a listing has been on the market. Homes that have been listed for 60 days or longer may belong to sellers who are becoming more motivated to negotiate on price or terms. This gives you an opportunity to make a lower offer and save money on your purchase price.

Browse foreclosure listings

Online auction portals and real estate listing sites with foreclosure filters allow you to browse bank-owned homes and distressed properties. These properties are often listed below market value because the seller wants a quick sale.

How to find off-market houses to flip

Finding off-market homes allows you to negotiate directly with sellers and potentially avoid steeper competition on the open market. Exploring off-market channels can unlock hidden gems to flip.

Work with investment-focused real estate agents

Partnering with real estate agents who specialize in investment properties can open up new opportunities. These agents often have access to pocket listings, properties that are for sale but aren't visible on the MLS.

Network with wholesalers and REI groups

In real estate, wholesalers find deeply discounted properties, put them under contract, and assign contracts to an investor for a fee. Joining local real estate investment associations and investor meetups allows you to network with wholesalers and other investors who can share potential deals.

Contact owners directly

Direct outreach is a classic way to discover hidden deals. You can contact homeowners in your desired neighborhood to see if they'd consider selling. Sellers might appreciate the convenience of avoiding repairs and agent fees.

Look for vacant or abandoned homes

While driving around local neighborhoods, keep an eye out for potentially vacant or abandoned homes. Warning signs like overgrown yards, boarded-up windows, or mail buildup can indicate an unmaintained property. You can search public records to locate the owner and reach out directly. Read more in our guide on abandoned properties.

Check FSBO homes and expired listings

For-sale-by-owner (FSBO) homes are properties listed by owners without an agent. These sellers may be open to quick cash offers or creative terms. Similarly, expired listings are homes that failed to sell during their initial listing period. Homeowners with expired listings are often motivated to find a serious buyer who can close quickly.

What to consider when finding a house to flip

Finding an investment property is just the first step. You'll want to carefully evaluate key property details before making an offer to keep your investment profitable.

Budget

Setting a detailed budget helps you keep your finances on track. Your budget has to cover the purchase price, closing fees, permits, inspections, and renovation costs. Don't forget holding costs like utilities, property taxes, and insurance, plus selling costs when you list. Always set aside a contingency fund to manage unexpected repairs without burning through your profits.

Location

Location can influence how fast your home sells and what buyers are willing to pay. Look for areas with strong school districts, nearby parks, shopping centers, and easy commutes. You should also review local property taxes and neighborhood trends to ensure buyer demand is steady.

Condition

The home's condition affects your project timeline and budget. Surface-level updates like fresh paint, new flooring, and updated cabinets are usually quick and manageable. Major repairs involving foundations, roofing, electrical systems, or plumbing can be more costly and delay resale.

Market research

Thorough market research helps you estimate your potential resale price. Review comparable sales or “comps” – recent sales of similar nearby homes – to calculate your after-repair value. Generally, low inventory and steady buyer demand signal a healthy flipping environment.

Financing

How you finance your flip impacts interest expenses and overall profit. Common choices include paying cash, conventional mortgages, hard-money loans, or home equity borrowing. Compare approval speeds, interest rates, and loan terms to match your timeline. You can explore different loans for flipping houses to see which option fits your plan best.

Exit strategies

Plan your exit strategy before you buy. Most investors list the finished property with a real estate agent to attract homebuyers. Others sell directly to another investor. If local market conditions shift, you might consider renting the home out until a more favorable market emerges.

FAQ

Here are the answers to some common questions about house flipping.

What is the best way to find houses to flip?

Using a combination of methods is a smart approach to house flipping. Combine online tools like MLS listings and Redfin alerts with local networking, wholesaler connections, and direct seller outreach to maximize deal opportunities. Some homes are sold through property auctions, which may include bank-owned or distressed homes.

What is the 70% rule in flipping?

The 70% rule in house flipping suggests an investor should pay no more than 70% of the home's ARV minus estimated repair costs. It helps ensure you leave enough room for profit and holding fees.

How much will a flipper pay for a house?

How much a flipper pays depends on the projected resale value, total renovation costs, holding expenses, and desired profit margin. Ideally, investors aim to buy at a noticeable discount relative to neighborhood comps.

Is house flipping a good idea for beginners?

It can be a great venture for beginners who do thorough research, build a detailed budget, and work with experienced professionals like contractors and agents. Starting with small cosmetic flips helps build confidence.

What types of homes are best for flipping?

Homes that only need cosmetic updates – such as new flooring, paint, or light kitchen and bathroom updates – in desirable neighborhoods with strong schools usually make the best flips.

How much money do you need to flip a house?

The money needed varies by property price, location, repair needs, and financing strategy. You'll need enough to cover your down payment or purchase price, repair costs, holding fees, and selling expenses.

The bottom line: House-flipping takes time and planning

Finding houses to flip takes careful planning, deep research, and clear financial goals. By searching online platforms, connecting with off-market networks, and exploring distressed-property sources, you can build a steady pipeline of promising opportunities. Always evaluate your budget, location, property condition, and financing options before moving forward.

If you're ready to take the next step toward funding your investment goals, getting preapproved can give you a clear advantage. Start your mortgage application today to discover options tailored to your real estate journey.

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