Flipping houses has become one of the most popular real estate investment strategies, thanks to its potential for high returns and the thrill of transforming rundown properties into beautiful homes. But before you grab your hammer and start dreaming about profits, one thing is crucial: how to find properties to flip.

The success of your project largely depends on choosing the right property — not just any distressed home on the market. In this guide, we’ll walk you through the essential steps to help you identify smart opportunities, avoid rookie mistakes, and flip properties like a seasoned pro.

Understand What Makes a Property Worth Flipping

Before you even start searching, you need to know what separates a good flip from a financial flop. Not every outdated home is a gold mine. Here are the key traits that make a property ideal for flipping:

• Structural soundness: Major issues with the foundation, plumbing, or roof can quickly blow your budget. Focus on homes that need cosmetic improvements, not full rebuilds.

• Cosmetic distress: Homes that are ugly but functional — with outdated kitchens, bad paint jobs, or worn-out flooring — offer the best return on investment.

• Great location: The phrase “location, location, location” holds true in flipping. Properties in safe, growing neighborhoods with good schools and amenities tend to attract motivated buyers.

• Reasonable purchase price: If you buy too high, you’ll struggle to turn a profit after renovation, holding, and sale costs.

Remember: A property doesn’t have to be perfect — it just needs to have potential. Learning how to find properties to flip begins with mastering the art of evaluating hidden value others might miss.

Know Your Target Market Before You Buy

You can’t flip a property effectively if you don’t know who you’re flipping it for. Understanding your target market will guide every decision — from location to renovation choices. Are you targeting first-time homebuyers, growing families, downsizers, or remote-working professionals?

For example:

• Young professionals may want sleek, modern finishes, open layouts, and fast access to city centers or transit.

• Families often prioritize space — like extra bedrooms, fenced yards, and proximity to schools and parks.

• Retirees or empty nesters might prefer one-story homes with low-maintenance features and quiet neighborhoods.

When you understand your buyer, you’ll avoid over-renovating or investing in upgrades that don’t add value. Instead, you can focus on improvements that help you sell faster and for more — such as updated kitchens, energy-efficient windows, and curb appeal enhancements.

The Best Places to Look for Flip-Worthy Properties

Now that you know what you’re looking for, it’s time to start the hunt. There are more ways than ever to find distressed or undervalued properties. Some of the best places include:

1. MLS (Multiple Listing Service)

Work with an investor-friendly real estate agent who can spot motivated sellers or listings that have lingered on the market.

2. Foreclosure auctions

Homes in foreclosure are often sold below market value. But be cautious: auctions usually require cash upfront and little to no inspection.

3. Real estate wholesalers

These professionals find off-market deals and sell them to flippers at a slight markup. It’s a great shortcut if you don’t have time to prospect.

4. Estate sales and probate leads

Sellers in these situations are often motivated and looking to close quickly.

5. Driving for dollars

Physically scout neighborhoods looking for vacant or neglected homes. Then contact the owners with a handwritten letter or postcard.

6. Online platforms

Use Zillow, Redfin, PropStream, or DealMachine to search for distressed properties, absentee owners, or pre-foreclosure listings.

Tip: Build relationships with local agents, wholesalers, attorneys, and inspectors. When more eyes are helping you find properties, your odds of success go way up.

Use the 70% Rule to Make Smart Buying Decisions

One of the golden rules in house flipping is the 70% Rule. This formula helps you determine the maximum price you should pay for a flip:

Maximum Purchase Price = (ARV × 70%) – Repair Costs

ARV stands for After Repair Value — what the home will sell for once it’s fully renovated.

Example:
If the ARV is $300,000 and you estimate $50,000 in repairs:

($300,000 × 70%) – $50,000 = $160,000

That means the most you should pay is $160,000 to maintain a healthy profit margin after accounting for closing costs, taxes, realtor commissions, and unexpected issues.

The 70% Rule helps you stay disciplined and avoid bidding wars or emotional purchases that could eat into your profit.

Common Mistakes New Flippers Make (and How to Avoid Them)

Flipping houses isn’t as easy as the TV shows make it look. Many beginners make costly mistakes that can sabotage their first few deals. Here are the most common — and how to sidestep them:

• Skipping proper inspections: Always assess structural integrity, plumbing, electrical, and HVAC systems.

• Underestimating rehab costs: Get quotes from multiple contractors and always add a buffer of at least 15%.

• Over-renovating: Don’t install granite countertops in a neighborhood where laminate sells just as fast.

• Poor budgeting: Don’t forget to account for utilities, insurance, property taxes, staging, and agent fees.

• Neglecting the market: Always study comps (comparable sales) and market trends before buying.

A good flip is part math, part design, and part patience. Keep a clear head and a well-organized spreadsheet.

Conclusion: Flip Like a Pro by Starting Smart

Finding the right property is the first and most critical step to flipping like a pro. From understanding what makes a property valuable, to knowing your target market, and applying smart buying principles like the 70% rule — it all starts with strategy, preparation, and reliable tools.

If you’re serious about learning how to find properties to flip and want to accelerate your success, check out Dwanderful — the go-to resource for aspiring and experienced real estate investors.

Founded by seasoned investor and podcast host Dwan Bent-Twyford, Dwanderful offers:

• A free book, Real Estate Lingo, perfect for beginners who want to master industry language quickly.

• A paid guide, The Five Pillars of Real Estate Investing, loaded with practical strategies from Dwan’s 30+ years of experience.

• A fun quiz game that reveals how you could generate six figures in the next six months — whether you’re buying your very first property or expanding your portfolio. (It takes less than a minute!)

Flipping can be profitable, exciting, and life-changing — especially when you’re backed by real-world knowledge and expert insight. Take that next step with Dwanderful and unlock your full flipping potential today. Contact us now!

Frequently Asked Questions

How much money do I need to start flipping houses?

It depends on your location, financing strategy, and scope of work. Some investors begin with $30,000–$50,000 using hard money loans or private investors. If you’re using cash, you may need upwards of $100,000. Always budget for purchase price, rehab, holding costs, and contingencies.

How long does it take to flip a house from purchase to sale?

Most flips take between 4 to 6 months, depending on the renovation size, contractor availability, and market conditions. This includes inspections, permits, construction, listing, and closing. With experience, timelines often become shorter.

Should I flip houses part-time or full-time?

Many investors start part-time while keeping a steady income. This can reduce risk and allow you to learn gradually. Once you build confidence and a reliable team, you may decide to go full-time — but make sure you’re financially and mentally ready for the leap.