If you are thinking about real estate investing, house flipping can still be a viable means of making money even in 2025. From Attom Data, a curator of real estate data:

Flipping Rate Increases for Second Quarter in a Row While Profit Rebound Continues; Investment Returns Still Low but Reach 30 Percent Nationwide for First Time in Over a Year; Raw Flipping Profits Also Hit High Point Since 2022.

However, with high interest rates for both borrowers and potential buyers, labor issues, tariff woes, and competition from institutional buyers, having the right team and proper planning can help ensure success.

Below are a few steps to help you on the path to independence.

Research

Attend local meetups and find your house flipping community. Read books on house flipping. Sign up for Facebook real estate groups. Subscribe to Bigger Pockets. Familiarize yourself with the local market and trends. Learn the jargon.

Choose an area near you, preferably an older neighborhood with signs of revitalization and undervalued properties. Neighborhoods are rated A, B, C, or D. A being more expensive and D less desirable. For a rookie, focus on those B and C neighborhoods. Look for that home in the area that needs a little TLC, something that you might not make a great profit, but will help you get your feet wet.  A desirable neighborhood within these parameters should be walkable (low crime) with easy access to stores, restaurants, and parks. If you are catering to a younger target market, consider a starter home with access to good schools and public transportation.

Determine how you will raise the funds

There are several avenues to secure a loan that will allow you to successfully bid on a property, have funds for the rehab, and have the funds for holding costs and a built-in contingency of 10-20% if things go awry. You should also be able to put up money in addition to a loan. Lenders will want you to have some skin in the game.

• Find someone willing to partner up, splitting costs and work,
• Get a loan from friends or family,
• Take out a home equity loan or line of credit (HELOC),
• Use a private lender such as Lead Funding. Private lenders specialize in short-term loans for investors and offer an easy way to secure funds quickly, without a lot of red tape.

In the event you need a loan, find a lender early and get preapproved. This will give you an idea of the amount you qualify for, as well as what interest rate you’ll pay. This information should give you confidence when making an offer.

Create a Buy Box

A Buy Box is the criteria you set for yourself that will help you narrow your search. It can include location, target market, level of renovation you’re willing to take on, and how much money you have to invest.

Build your team  https://rehabfinancial.com/flipping-houses-101/chapter-1-how-to-start-flipping-houses/house-flipping-team

Building a team will help the rookie bring in expertise in areas where they lack knowledge. Your team can be broken into 3 categories of need: 1) finding, buying, and selling the property, 2) renovating the property, and 3) keeping up with the legalities. Consider professionals who have a history of house flipping and real estate investing.

• Real Estate Agent: A real estate agent will help in locating, buying, and selling the property. An agent specializing in house flipping can help locate other members for your team, provide comps and market insight.
• Real Estate Attorney: A real estate attorney can provide advice, contract review, and advice on other legal issues that may arise
• Accountant: An accountant or bookkeeper familiar with house flipping and real estate investing can help with the financial aspects, set up a business structure, assist in tracking expenses, and prepare your tax returns.
• Contractor: This is probably the trickiest of all. A good contractor can save you time and money. First, determine what projects you can (honestly) handle and which projects should be handled by a professional. Get references from friends, family, and your network. Properly vet the contractor(s) using references of past jobs and follow up on those references. Get more than 1 bid, making sure all bids are comparable. Have the contractor walk the property with you or provide the contractor with extensive photos, and if possible, a floor plan. Determine if they have the time to do the job, and have worked with house flippers, thus ensuring they understand the pressures and timelines.
• Inspector: An inspector can help identify potential problems and make a general assessment of the property before making an offer.
• Title Company: A title company ensures the smooth and legal transfer of title and will facilitate the closing process.
• Insurance Agent: You will need several types of insurance to cover the risks associated with flipping. These include Builder’s Risk Insurance, General Liability, and possibly Vacant Home Insurance.

Find a property

Once you have your ‘buy box” and are working on building your team, begin your search.

• Your agent should be able to feed you leads
• “Driving for Dollars” method,
• Online platforms such as Zillow, Redfin, and Realtor.com
• Wholesalers: Your network should be able to steer you to a reputable wholesaler
• County Records to indentify properties with issues such as liens or foresclosures
• Foreclosure and Auctions,

Run the Numbers

Your agent should be able to help you determine the After-Repair-Avlue (ARV) by providing you with recent comps in the near area that are similar to your property after you have considered the rehab. Make adjustments to account for square footage, number of bedrooms and baths, and any unique features like a location on a busy street, a swimming pool, or basement.

Apply the 70% rule. Multiply the ARV by 70% then subtract the estimated rehab cost to determine the price you can offer the seller. That is your maximum purchase price.

Calculate other costs associated with the rehab such as holding costs (all money spent while improving the property such as interest, mortgage payment, insurance, legal fees, and utilities. Other costs are associated with the sale of the property: commissions, closing costs, and marketing.

After you have run the numbers, you should be looking at a profit of 10-2-% of the ARV. Is that enough for you to proceed?

Rehab the property

If you are still in the game, it’s go time. Typically, a house flipping loan is for 12 months or less. The quicker the turn around the better. Interest is paid monthly with principal due at the end of the loan. Your lender will need you to meet certain requirements. They will tell you what documents they need to see, such as your credit score minimums, the amount of money you will be contributing, proof of income, and your previous experience.

Sell the property

Rinse and repeat