How to Flip Houses as a Realtor in 2025

What Is House Flipping?

House flipping is the process of buying undervalued properties, renovating them, and selling them at a higher price for a profit—usually within 6–12 months.

As a licensed real estate agent, you have a unique edge: access to deals, market knowledge, and fewer commission costs.

📈 Why Realtors Should Consider Flipping Houses

Early access to listings before public market
Keep commission income when you buy/sell
Strong local market knowledge
Build long-term wealth alongside active income

🧱 Step-by-Step: How Realtors Can Start House Flipping

✅ 1. Set Your Budget and Financing

Know your numbers before making an offer.

Cash buyers save on interest
Or use hard money loans, lines of credit, or private lenders
Account for:
- Purchase price
- Renovation costs
- Holding costs (taxes, utilities, insurance)
- Realtor fees (if not representing yourself)

📊 Pro Tip: Use a deal analyzer tool like DealCheck or PropStream

🏚️ 2. Find the Right Property to Flip

Look for “ugly but structurally sound” homes in up-and-coming areas.

Top ways to find deals:

MLS (Multiple Listing Service)
Foreclosures or bank-owned properties (REO)
Wholesalers or real estate auctions
Off-market deals via networking

🛠️ 3. Estimate Renovation Costs Accurately

Partner with trusted contractors for realistic estimates.

Focus on kitchen, bathrooms, floors, and curb appeal
Avoid over-renovating—stick to the neighborhood comps
Get 2–3 contractor quotes before committing

📌 Use the 70% Rule:

Never pay more than 70% of ARV (After Repair Value) minus renovation costs.

Example: If ARV is $300,000 and repairs are $50,000 → Max offer = $160,000

🧾 4. Handle Permits, Inspections & Legalities

Pull necessary permits early to avoid delays
Hire a licensed inspector to avoid surprises
Always follow city zoning, building codes, and tax rules

💰 5. Sell Strategically

Since you’re a licensed realtor, you can:

List it yourself and save 2.5–3% on commission
Time the market for best returns (spring/summer often best)
Use professional staging and real estate photography

🧠 Bonus Tip: If the market shifts, consider renting the property short-term (Airbnb or lease) until prices rebound.

⚠️ Risks to Watch Out For

Hidden repair issues (foundation, mold, plumbing)
Rising material/labor costs
Market corrections or slower resale
Holding costs eating into profits
Permit delays or code violations

Always have a backup plan and margin for error.

💼 Best Tools & Resources for Realtor Flippers

DealCheck – Property ROI calculator
BiggerPockets – Real estate investor forum
PropStream – Property data and leads
Monday.com or Trello – Project management
Zillow & Redfin – Comp analysis

📊 House Flipping Example (2025)

Metric	Amount
Purchase Price	$180,000
Renovation Cost	$40,000
Holding & Fees	$10,000
Total Invested	$230,000
Resale (ARV)	$290,000
Profit	$60,000