Your simple, no‑fluff starter guide to flipping houses safely and profitably.
Goal: Help you avoid the costly mistakes I made over a decade and hundreds of flips.
Promise: You won’t be an expert after this post, but you’ll understand the key concepts to start strong.
TL;DR
- Flipping has 4 steps: Deal → Strategy → Work → Market.
- Focus on great deals, baseline renovations, reliable vendors, and tight project management.
- Use the Scale of Livability to control risk and force value ethically.
- Avoid odd birds, messy parcels/easements, and inconsistent flood zones.
- Don’t over‑renovate for HGTV. Win with Baseline + Big Three.
The 4 Steps of a Flip
A flip is just a small business with a clear sequence. When you respect the order—deal first, then plan, then build, then sell—you reduce surprises and protect margin. Think assembly line, not art project.
- The Deal – Acquire the property and secure funding.
- The Strategy – Decide what to do and why based on comps.
- The Work – Execute the plan with the right contractors.
- The Market – Sell or rent for maximum, safe profit.
Everything sits on two layers:
- Foundation: Know why you’re doing this.
- Filter (The Empire): Your long‑term mindset, systems, and relationships.
Why Real Estate (5 Reasons)
Real estate is forgiving when you buy right and control the work. It blends financial leverage with practical skills so your effort directly creates equity. Few assets let you improve value with a screwdriver and a checklist.
- History: Property trade has created wealth for thousands of years. It isn’t a fad.
- Leverage: Banks and investors will fund real estate more than most assets.
- Universal Need: Everyone lives somewhere. Demand is persistent.
- Control: You can directly change value with scope and execution.
- Two‑in‑One: Flip for income now. Hold for wealth later.
Why Flipping Skills Compound
Flipping builds multiple skill sets at once—valuation, renovation, and management. These skills compound because they apply to both active income (flipping) and passive income (rentals).
When you “sell it to the bank” on a refi, your flip skills still pay. Renovations are future‑proof: every project is unique; robots can’t standardize the chaos. And once you know how to find deals and manage rehabs, you’ll never run out of ways to make money in real estate.
The Scale of Livability (Your Safety Net)
This lens keeps you out of trouble. Your goal isn’t perfection—it’s crossing the livable line and matching what buyers in this neighborhood expect. Move the house to the right with repairs that matter, not upgrades that don’t appraise.
- Picture a spectrum from Bombed‑Out → Livable → Barely Bankable → Comps Range.
- Your job: move a property rightward with smart renovations.
- This is forced appreciation. It gives you control.
- Control lowers risk. If something goes wrong, you can still move the needle.
Step 1 — The Deal
Great flips are won at acquisition. A skinny buy forces risky renovations and wishful pricing. A strong buy gives room for mistakes, holds, and realistic exit strategies.
Buy Off‑Market (When Possible)
- MLS/Zillow often means top‑of‑market pricing.
- Off‑market and wholesaler leads can be closer to true value.
- Best: Generate your own deals for maximum margin and control.
Choose Your Market
Start local. Presence beats theory. If needed, drive 2–5 hours to an active market where you can show up. You’ll learn faster and protect yourself from surprises.
Pick a Few Neighborhoods (Not the Whole City)
Define by census tracts and major roads. Focus your marketing. Depth over breadth builds local brand recognition.
Comp the Market Smartly
Compare size, style, stories, and sale date. Keep comps inside the same neighborhood. That’s your pricing reality.
Marketing: Outbound for Inbound
You can’t persuade a non‑seller into selling. Spend your energy finding people who already raised their hand. Consistent, boring marketing beats heroic one‑off efforts.
What works:
- Direct mail (steady baseline).
- Google PPC (intent‑driven).
- Selective cold calling (filter hard).
- Lead vendors (supplement only).
Set Up Home Base
A credible local presence matters. Have a local address, phone number, and simple website. It tells sellers you’re real.
Use a Simple CRM
Even a spreadsheet works. Track leads, status, and follow‑ups. Sales = Negotiation + Follow‑Up.
DOA Filters (Deals to Skip)
Passing on a problem is a profit decision. Odd parcels and flood quirks drain time, not just dollars. Keep your pipeline clean so you can say yes to better houses.
- Odd birds: Outliers that don’t match the area.
- Messy parcels: Easements or line issues that eat time.
- Inconsistent flood zones: Avoid unless it’s standard for the area.
- 7′ ceilings: Hard to resell. Pass.
Closing the Deal
Show your work like a math teacher. When sellers see the walkthrough logic and the numbers, price becomes a conclusion—not a fight. Authority is built through clarity, not pressure.
Use the 70% Rule: 0.70 × ARV − Rehab = Max Offer.
Get the Money (Banks Aren’t First Choice)
Financing should match the asset’s condition. Value‑add deals need flexible lenders who fund both purchase and repairs. As your track record grows, capital options improve—and terms do too.
Step 2 — The Strategy
Design for the comp set, not your taste. The biggest wins come from picking the right scope and executing cleanly. Overbuilding turns equity into décor.
Comp the Renovation (Not Just the ARV)
Match finishes to what actually sells in the comp range:
- Roofs, cabinets, counters, floors, baths, etc.
- Don’t outbuild the neighborhood.
The 4 Levels of a Scope of Work
This ladder keeps you disciplined. Secure safety first, stop deterioration, hit the baseline that sells, then place a few strategic “wow” moments upfront. Budget flows to what buyers actually notice.
- Safety & Liability: Always. No slum‑lord shortcuts.
- Stop the Bleeding: Fix water intrusion and active decay first.
- Baseline: Match the middle of what sells (not the top).
- Big Three (Psychology): Upgrade the first three touch‑points buyers see (curb, entry, kitchen, bath).
Chunking & Media Packets
Organize your rehab before you swing a hammer. Chunk work by trade and timing. Then document it—photos, videos, written scope—so every contractor sees the same vision.
Avoid the HGTV Trap
Pretty doesn’t always pay. I once lost $200,000 chasing a dream renovation while my neighbor made six figures on a simple cosmetic job. Don’t fall for vanity flips.
Step 3 — The Work
Your vendor bench is your unfair advantage. One reliable all‑arounder can replace three flaky specialists. Hire slow, test small, and keep backups ready.
Contractor Types
- Specific‑Job Pros: Roofing, Electrical, Plumbing, Paint. Efficient but management‑heavy.
- All‑Arounders: Do many trades. Not elite at any. Perfect for baseline work.
- Handyman (Pro‑Level): Do everything well, fix surprises. Use as bottleneck breakers.
Build a Recruiting Pipeline
Treat vendors like sales leads: Source → Track → Follow‑Up → Tryout → Keepers. Great contractors make great flips.
Expectations → Accountability
Write it, show it, confirm it—before work starts. Clear scopes make accountability fair and fast. If it isn’t documented, it’s a wish.
Step 4 — The Market
Most buyers decide in seconds. Your job is to engineer those seconds: approach, entry, first sightline. Everything else should quietly confirm the decision they already made.
FSBO vs Agent
A strong agent can net you more and save your bandwidth. But find one who understands investors and fights for every dollar.
Psychological Hacks
- Filters: FSBO often signals “cheap/novice.” Avoid the wrong first impression.
- Big Three: Place your best touches where buyers look first.
- Finish Line: Tighten every detail—hinges, caulk, transitions. Buyers feel quality before they see it.
Digital Introduction (Happens Before Showings)
Online is your first showing. Nail the price bucket, lead with professional photos in a logical order, and write copy that makes people feel at home. Curiosity creates showings; showings create offers.
The Empire (Run the Business Like a Pro)
Systems beat moods. Protect relationships, protect cash, and protect focus. When in doubt, return to the four levers: deals, vendors, management, and smart scopes.
Relationship Capital
Every interaction deposits or withdraws from your emotional bank account. Be firm, fair, and clear. Accountability isn’t aggression—it’s alignment.
Financial Contingency
Being “zero down” isn’t being “zero dollars.” Always keep a cash cushion for surprises and opportunities. Operating from strength changes every decision.
Manage Yourself
It’s your organization, not theirs. Advisors, agents, and lenders work for you. Focus your bandwidth on the four levers that actually move profit.
A mentor with 50 paid‑off rentals once told me his secret: Buy one, rent it, let the tenant pay it off, repeat. Thirty years later, he owned them all. Simple isn’t easy—but it works.
Action Checklist
Start small and consistent. One focused neighborhood campaign can outproduce a scattered citywide blast. Momentum compounds.
- Pick 1–3 neighborhoods to focus on.
- Set up a site, phone, and local address.
- Launch direct mail + PPC with small, steady budgets.
- Build a lead spreadsheet with weekly follow‑ups.
- Learn your ARV and renovation comps.
- Draft a baseline scope + identify your Big Three.
- Recruit 5 contractors (mix of all‑arounders and pros).
- Create media packets for your next job.
- Partner with an investor‑friendly agent.
- Maintain cash buffer for contingencies.
Download Your Free Tool
💡 Get the Flip & Calc Spreadsheet — my personal 70% rule calculator used in real deals. Input ARV, rehab, and funding to instantly see your max offer. Download Here →
Final Word
Stick to the four steps. Respect the baseline. Over‑index on deals, vendors, and management. Do that, and flipping becomes a repeatable, low‑drama business—not a TV show.
Ready to start? Pick your neighborhoods and write your first mailer today.