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 |
How to Flip Houses as a Realtor in 2025
🧠 Final Thoughts: Plan Your Flips, Plan Your Cents
Realtors are uniquely positioned to succeed in the house flipping business. With smart planning, a reliable network, and deep market insight, you can turn distressed properties into serious profits—all while building long-term wealth.
Ready to flip your first house? Download our Free Flipping Checklist for Realtors (optional lead magnet idea).
