Three Dirty Secrets You MUST Know Before Flipping Houses

My husband and I bought our first flip in late 2013. We thought it would be a one and done project, but we actually had fun (for the most part) rehabbing the home. The greatest satisfaction was when it was put on the market and all the positive feedback we got. All of our hard work was (gasp!) appreciated!

Fast forward to today, December 2015. With three flips under our belts and two buy and holds, I feel we are on the path to success! We have learned a lot along the way, but here are three dirty secrets you should know before flipping homes.

1. Finding a Deal is Not as Easy as You Might Think.

There are great deals out there. And there are not so great deals out there. And then there are downright losers. How will you know the difference? This involves a lot of time and research and hopefully you have someone on your team that knows a good deal when they see one. Just because the ad says you can sell it for $X after repairs does not give a full explanation. Do your own research or have someone knowledgeable in that area to do it for you.

2. You Will Spend So Much Money That Will Make Your Stomach Turn.

If flipping to you means: buy, rehab, sell for profit, then be prepared to open your wallet. Don't fall victim to "no money down" hypes. That’s wholesaling. You absolutely need money to really buy a house and get in the game. Don’t forget about realistically estimating the rehab costs. That’s whole other topic for discussion!

3. Reality TV is not Reality.

I work on the houses. I don’t wear make-up and I’m not afraid of getting my hands dirty.  It's literally blood, sweat and tears!  The work does not get done in 2 weeks, and especially in the beginning, you won’t have a contractor to do all of the work for you and still turn a profit. Any work you hire people to do, pay them fairly. You will work late nights, weekends, and sometimes until the wee hours of the morning so you can catch the market while it’s still hot. Late Nights + Lots of Money Spent= potential arguments with your spouse/ significant other. Can your relationship survive that?

In the end, you will work harder than you ever worked before when you flip a house. You will learn things the hard way. You will question why you even thought it was a good idea. Is it worth it?  Absolutely.