Things to Follow and Avoid While Flipping a House

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Things to Follow and Avoid While Flipping a House

Flipping houses looks easy on TV, right? You buy a rundown home, fix it up, and sell it for a profit. Simple enough. But anyone who’s done it knows there’s a whole lot more to the story. If you don’t go in with a solid plan, flipping can turn into a financial mess before you even pick up a hammer.

So, how do you make sure your project runs smoothly and ends with a healthy profit? By knowing exactly what to do—and what to steer clear of.

Let’s break it down.

What to Follow When Flipping a House

1. Always Do Your Homework Before Buying

The house you pick will determine whether your flip is a success or a total bust. Not every fixer-upper is a hidden goldmine, and paying too much upfront is a mistake that’s hard to recover from.

What should you check before making an offer?

  • The neighborhood – Look at crime rates, school districts, and nearby home values.
  • Market conditions – Are home prices rising or falling? What’s the average time on the market?
  • Comparable sales (comps) – Check recently sold homes with similar features. This helps you estimate the after-repair value (ARV).
  • Hidden issues – Foundation cracks, mold, outdated electrical—some problems are deal-breakers.

Skipping this step can lead to buying a house that’s either impossible to sell or too expensive to fix.

2. Stick to a Strict Budget

One of the fastest ways to lose money in real estate investing is underestimating renovation costs. Before you even think about making an offer, you need a clear budget.

What should you factor in?

  • Purchase price – The lower the better, but make sure it aligns with your ARV.
  • Renovations – Include materials, labor, permits, and unexpected costs (because there will be unexpected costs).
  • Holding costs – Mortgage payments, property taxes, insurance, and utilities add up while you’re waiting to sell.
  • Selling costs – Real estate commissions, closing costs, and staging expenses should be accounted for.

A good rule of thumb? Always add 10-15% to your budget for unexpected surprises.

3. Work With the Right Team

Trying to flip a house completely on your own is like trying to build a skyscraper with a toolbox from the dollar store—it’s not gonna happen. Having a solid team makes all the difference.

Who should be in your corner?

  • Real estate agent – Helps find deals and sells the property fast.
  • Contractor – A skilled, reliable professional is worth every penny.
  • Inspector – Catches problems before they become expensive disasters.
  • Lender – Unless you’re paying in cash, a hard money lender or private investor can help fund the project.

4. Focus on Smart Renovations

Not all upgrades are worth it. Some add major value, while others are just a waste of money.

High-ROI improvements:

  • Kitchen remodels – Modern countertops, cabinets, and appliances can boost the selling price.
  • Bathroom updates – A clean, updated bathroom sells. Period.
  • Curb appeal – First impressions matter. A fresh coat of paint, landscaping, and a nice front door work wonders.
  • Flooring – Hardwood or high-quality vinyl flooring appeals to most buyers.

Things that won’t give you a great return?

  • Luxury fixtures – No need for gold-plated faucets in a mid-range home.
  • Expensive landscaping – A simple, well-maintained lawn is all you need.
  • Swimming pools – Costly to install and maintain, plus some buyers don’t want the hassle.

5. Sell at the Right Price

You’ve put time and money into the flip, so it’s tempting to list it at a sky-high price. But overpricing leads to a property that sits on the market, racking up holding costs.

How to price it right?

  • Check recent comps to see what similar homes have sold for.
  • Set a price that attracts buyers but still gives you a solid profit.
  • If the house isn’t getting offers within the first few weeks, adjust quickly—time is money.

What to Avoid When Flipping a House

1. Avoid Buying a Property Without a Clear Plan

Buying a house just because it “feels like a good deal” is a terrible strategy. Every flip should be backed by solid research, clear numbers, and a well-thought-out plan.

Mistakes that can cost you?

  • Buying in an area with little demand.
  • Underestimating repair costs.
  • Overestimating the resale value.

If the numbers don’t work, walk away. There’s always another deal.

2. Don’t Cut Corners on Repairs

Tempted to go with the cheapest contractor? That’s a disaster waiting to happen. Bad work leads to failed inspections, buyer complaints, and last-minute repair demands that eat into your profit.

What should you never skimp on?

  • Electrical and plumbing – These should always be handled by licensed pros.
  • Roof repairs – Leaks will kill a sale faster than you can say “price reduction.”
  • Foundation issues – Buyers (and inspectors) will run if there are cracks or shifting.

Cheap fixes today can turn into major expenses down the road.

3. Don’t Overdo the Design

You’re flipping for profit, not decorating for yourself. Just because you love trendy wallpaper and custom cabinets doesn’t mean buyers will.

Keep things neutral, modern, and universally appealing. Think:

  • White or light gray walls
  • Simple, functional kitchens
  • Timeless bathrooms

Make the home attractive but don’t go overboard with expensive personal touches.

4. Don’t Get Emotionally Attached

Flipping is a business, not a passion project. It’s easy to fall in love with a house and want to make it perfect—but perfection costs money.

Keep a business mindset:

  • Stick to the budget—no unnecessary upgrades.
  • Sell quickly—holding onto it for months while waiting for a higher offer usually backfires.
  • Move on to the next deal—flipping isn’t about one house; it’s about long-term profit.

5. Don’t Skip the Exit Strategy

What happens if the market shifts? What if the house doesn’t sell as fast as expected? Always have a backup plan.

Options if your flip isn’t selling:

  • Rent it out – Turn it into a rental until the market improves.
  • Lower the price – A smaller profit is better than no profit.
  • Wholesale it – Sell it to another investor if needed.

Thinking ahead helps avoid getting stuck with a property you can’t unload.

Ready to Flip Houses the Right Way?

House flipping can be an incredible way to build wealth, but it’s not something you want to rush into without a plan. By following smart strategies and avoiding costly mistakes, you’ll set yourself up for success.

If you’re ready to take the next step, check out our franchise opportunities and learn how you can build a real estate business with expert support.

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Ken Corsini

Ken Corsini is a real estate investor, entrepreneur, and HGTV personality known for co-founding RED BaRN Homebuyers and flipping over 1,000 properties since 2005. His expertise in house flipping and investment strategies has been featured on Flip or Flop Atlanta, Rock the Block, and Flipping Showdown.

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