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Sheepdog1833
LSU Fan
Member since Feb 2019
388 posts
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Flipping houses as sole income?
I co-own a heavy construction company that had taken a hit over the last 18 months and a huge one recently because of the shutdown. And truth be told it isn’t exciting to me after 20 years in the business.

I’m looking into flipping houses at first as a supplemental income then going full time. I’ve done rehab on a few houses I’ve owned and friends that have needed work done. I feel comfortable in most things dealing with structure, electrical, plumbing and finish work.

My questions are broad and specific:
Is this something that on a true individual level that can be financially successful?
Is this remotely a good idea in these uncertain times, though I feel opportunities abound in times such as these? Just need to attack the right ones.
Are there pitfalls that aren’t as obvious? Would you touch a house say that has been flooded? (I’m not going to start here but was curious)

I’m truly unhappy with my current job and can definitely find fulfillment in flipping houses myself, but am unsure of its viability. Any comment would be helpful here.
This post was edited on 5/21 at 11:10 am


b-rab2
LSU Fan
N. Louisiana
Member since Dec 2005
11919 posts

re: Flipping houses as sole income?
There is a lot of competition out there for flipping. Make sure you have 2 plans: 1. buy and flip 2. buy remodel and rent it out if you cant get it sold


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140
boosiebadazz
Member since Feb 2008
68707 posts

re: Flipping houses as sole income?
I think your location matters too. Big difference trying this in Midland, Texas versus Nashville, Tennessee.


EsquireReb
Ole Miss Fan
Member since Jan 2014
25 posts

re: Flipping houses as sole income?
^ This. It is very doable, but potential profit will depend on location, housing market in your area, and competition in the area - the # of other flippers also searching for discounted properties in the area can bid up the cost of attaining a good flip house.

For example, I'm a real estate attorney and flipper and there are markets around here where it is not uncommon to have 40+ people bidding on a foreclosure. If you go outside the larger cities, that # can be 3 or even less flippers bidding on a property.
This post was edited on 5/21 at 1:38 pm


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Peejack84
LSU Fan
Lafayette
Member since Aug 2019
92 posts

re: Flipping houses as sole income?
Don't let the HGTV shows fool you, flipping full time is a lot of work. Ultimate goal should be to get into multifamily rentals for long term passive income.


stout
Arizona Fan
Back in God's Country
Member since Sep 2006
142839 posts

re: Flipping houses as sole income?
Considering there will be a massive market correction due to the fallout from COVID, I'd say your timing is horrible. On the other hand, there will be a lot of foreclosure inventory soon.
This post was edited on 5/21 at 2:29 pm


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jimbeam
USA Fan
University of LSU
Member since Oct 2011
61421 posts
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re: Flipping houses as sole income?
quote:

Ultimate goal should be to get into rentals for long term passive income.
This post was edited on 5/21 at 2:41 pm


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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
24817 posts

re: Flipping houses as sole income?
I see a lot of flips in my business. Never done one myself. What I see from the outside looking in: it's not as easy as TV makes it seem and you will have to work/gain experience at it just like any other job. At some point it may just click for you and you will better understand how to earn a living full time doing it.

1. Leg work finding deals
2. Financing - costs of carrying debt waiting for the property to sale or rent.
3. Cost of labor/construction going up.
4. Finding good subs for the stuff you aren't doing yourself. good being some combination of efficient and good work at a reasonable price.

These are at least some ongoing concerns you have to figure out.


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lil 7thward
New Orleans Pelicans Fan
ATL
Member since Jan 2012
2026 posts

re: Flipping houses as sole income?
quote:

Is this something that on a true individual level that can be financially successful?
If you're buying at the right price and location, yes.


quote:

Is this remotely a good idea in these uncertain times, though I feel opportunities abound in times such as these?
I would wait until the covid-19 mortgage foreclosure protection is over. There is a big band-aid on the housing market right now.

quote:

Would you touch a house say that has been flooded?
At the right price, yes.

Also, all the other posters are giving really good advice.


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AUtigR24
Auburn Fan
Happy Hour
Member since Apr 2011
18397 posts
 Online 

re: Flipping houses as sole income?
Easily doable if you live in a market with enough inventory. You better have a big bankroll and networth though. Banks aren't going to want to loan to you with no primary source of income.

I do 3 o 4 a year because that's what my market gives me (South Alabama). I might could squeeze a few more in there but I don't chase deals and only take the big payouts.


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AUtigR24
Auburn Fan
Happy Hour
Member since Apr 2011
18397 posts
 Online 

re: Flipping houses as sole income?
quote:

Don't let the HGTV shows fool you, flipping full time is a lot of work.


Not for me...It took me years but I've got a guy on speed dial for everything now. I sub EVERYTHING out. My latest flip I maybe stepped in the door 4 or 5 times just to look at the progress.

Doing all the work yourself is for the birds. Especially if you have a family and enjoy your free time.


AUtigR24
Auburn Fan
Happy Hour
Member since Apr 2011
18397 posts
 Online 

re: Flipping houses as sole income?
quote:

Ultimate goal should be to get into multifamily rentals for long term passive income.


Agreed but a mistake I see many investors make is switching to rentals too quickly. If you don't build your bankroll first you'll end up over leveraged with not enough cashflow to support anymore deals.


ItzMe1972
Member since Dec 2013
3402 posts

re: Flipping houses as sole income?
"Just need to attack the right ones."

--------------

I've done dozens of flips.

The key is to buy right and have resources to assist as needed.

I paid 70 cents on dollar for houses needing a good bit of updating. 80 cents for those needing little work. At times I was lucky and paid 50 cents/dollar.

But, I sold them myself and saved realtor fees.

Edit: I held some back as rentals and have a portfolio.
This post was edited on 5/21 at 8:17 pm


Twenty 49
LSU Fan
Shreveport
Member since Jun 2014
12918 posts

re: Flipping houses as sole income?
There is a guy who has worked my neighborhood for years and seems to have it figured out.

He buys run down houses, mainly ones that old people sat in with cats for 10 years. He has his own crew of Mexicans who remodel/update with modern styles, then he puts it up for sale advertised with his own company as seller (no realtor). If it doesn't sell quickly, the "for rent" sign goes up. They usually move pretty soon.


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cgrand
New Orleans Pelicans Fan
HAMMOND
Member since Oct 2009
21508 posts

re: Flipping houses as sole income?
quote:

Doing all the work yourself is for the birds. Especially if you have a family and enjoy your free time.

I’m a contractor and there’s zero chance I’d self perform if I wanted to renovate houses. The catch is to to that profitably you must have volume


LSUneaux
New Orleans Pelicans Fan
NOLA
Member since Mar 2014
3227 posts
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re: Flipping houses as sole income?


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jimbeam
USA Fan
University of LSU
Member since Oct 2011
61421 posts
 Online 

re: Flipping houses as sole income?
What about live in flips


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EA6B
Navy Fan
TX
Member since Dec 2012
10257 posts

re: Flipping houses as sole income?
quote:

I feel comfortable in most things dealing with structure, electrical, plumbing and finish work.


This is where guys screw up flipping houses, they know how to build out, but neglect the most important aspect that sells a house, the design. Get a woman to do your design work, or at least approve any layout you come up with. I’ve seen flips set on the market forever because it looked like the flipper just decided to duplicate his hunting camp.


Peejack84
LSU Fan
Lafayette
Member since Aug 2019
92 posts

re: Flipping houses as sole income?
quote:

Agreed but a mistake I see many investors make is switching to rentals too quickly. If you don't build your bankroll first you'll end up over leveraged with not enough cashflow to support anymore deals.


I agree with this.


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go ta hell ole miss
New York Yankees Fan
Member since Jan 2007
8132 posts

re: Flipping houses as sole income?
quote:

I think your location matters too. Big difference trying this in Midland, Texas versus Nashville, Tennessee


This. Midland has easily been one of the hottest markets in the country for the last couple of years. Much easier to flip in hot markets, but there’s competition in those markets, too.


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