Top 5 Questions First-Time House Flippers Ask
- Ronda Sharp
- Sep 18
- 2 min read
House flipping can be exciting and profitable, but for first-timers, it also comes with a lot of questions. From financing to renovations, knowing what to expect can save you from costly mistakes.
To help you hit the ground running, here are the top 5 questions first-time house flippers ask—and the answers you need.
1. How much money do I need to start flipping?
The exact amount depends on your market and strategy, but most flippers need funds for:
Down payment or purchase price (if not using cash buyers or hard money)
Renovation costs
Holding costs (utilities, taxes, insurance, loan payments)
Closing costs and fees
A safe rule of thumb: plan for at least 20–30% of the project’s ARV (After Repair Value) as cash or financing.
2. How do I know if a property is a good flip?
A good flip starts with the numbers. Use the ARV, MAO and the 70% Rule as a guideline:
1st step: Determine the comps in the area and calculate the ARV:
ARV= The Sell price of 3 properties similar to your property of interest / 3
2nd Step: Now that the ARV has been determined. Calculate the MAO:
Maximum Allowable Offer (MAO)=(ARV × 70%) – Repair Costs - Holding Costs
This ensures you leave enough room for renovations, holding costs, and profit. Also, look for properties in desirable neighborhoods where renovated homes sell quickly.
3. What renovations add the most value?
Focus on updates that buyers care about most:
Kitchens and bathrooms (modern and functional)
Curb appeal (landscaping, exterior paint, front door)
Flooring and fresh paint
Energy-efficient windows or systems
Avoid over-renovating—choose cost-effective upgrades that deliver the best return.
4. How long does a flip usually take?
Most flips can take 1 to 6 months from purchase to resale, depending on the size of the renovation and how fast contractors can work. Delays are common, so always budget extra time to avoid financial stress.
5. What are the biggest risks in house flipping?
Some of the biggest risks first-time flippers face include:
Underestimating renovation costs
Unexpected repairs (foundation, plumbing, electrical)
Overpricing the finished home
Market shifts that slow down sales
You can minimize these risks by doing thorough inspections, working with trusted contractors, and running conservative numbers.
Final Thoughts
Flipping houses isn’t just about finding a fixer-upper and making it pretty—it’s about knowing your numbers, planning for the unexpected, and focusing on upgrades that buyers want. By asking the right questions early, you’ll set yourself up for success and avoid the common pitfalls that trip up first-time flippers. To learn more about flipping properties, wholesaling, and more, sign up for our upcoming classes.
The information in this article are of the experience and opinion of the author. Due diligence should always be done before venturing into real estate.
Comments