Flipping houses
Is flipping houses a good way to make money?
2 minute read
Flipping means buying a house below value, fixing it, and selling it. Profit comes from buying right, not from hoping prices rise.
The big risks: repairs cost more than planned, the job takes longer, or the market slows while you hold it.
Every month you hold it costs money: loan interest, taxes, insurance, utilities.
Profit from flips is usually taxed as regular income. Ask a tax pro.
Why this matters
Flips can create cash fast, but most losses come from underestimating repairs and time.
What to do with this
- Add a 15 to 20% buffer to repair estimates.
- Know your total costs, including selling costs, before you buy.
- Start with cosmetic fixes, not full rebuilds, until you have experience.
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