Flipping a House Checklist: Everything You Need to Consider (2024)

Here is your fix-and-flip checklist.

Before You Buy a House to Flip

• Get to know your local real estate market. Which neighborhoods are seeing the best value growth? How much should you reasonably expect to pay for a fixer in that neighborhood? And are there any barriers to rehabbing a property in that area (like excessive permit wait times)?

• Understand your budget. How much will go toward the purchase and closing costs, how much will go toward the renovation, and how much will be allocated toward holding costs and closing costs when you go to sell?

• Arrange your financing. Get your cash ready or get pre-approved for a loan.

• Find a real estate professional you trust. Agents often have industry connections that can help you find an off-market deal.

• Scout individual properties in your chosen neighborhood. You may end up considering dozens or even hundreds of properties before finding the one you feel has the greatest profitability potential.

• Negotiate the purchase of your new property. Getting favorable terms and a good purchase price is critical to the success of your flip.

• Have a certified home inspector review the property before you complete the purchase. You need to know as much about the condition of the property as possible to know if it’s a wise investment. The property inspection will give you this information.

• Start your renovation planning. Put your escrow period to good use by creating a plan for tackling your renovations and repairs. Make sure you understand what potential buyers are looking for so you can create a home that meets their needs. Prioritize ways to add value without incurring excessive expenses.

• Get your team on standby. Successful home flips are usually a group effort. Unless you plan to do all the work yourself, you’ll need a contractor, a small team of skilled laborers (like plumbers, electricians, painters, roofers, etc.), a designer, a landscaper, a home stager, and a real estate agent to sell your flip (the agent used to buy the property might not be the best fit for selling; use an agent who specializes in listing homes when you sell the property).

House Flipping Renovations

Here is your house flipping repair checklist:

• Have the utilities turned on.

• Order a dumpster.

• Make sure the team is clear on the renovation plan.

• Take the “before” pictures.

• Order the necessary materials. Always order a bit more than you expect you’ll need to account for human error and materials with imperfections.

• Apply for any necessary permits.

• Demolish as appropriate.

• Begin the property rehab.

• Check in daily. Even if the project is being overseen by a general contractor, it’s ultimately your investment at stake, so you need to know exactly what is happening throughout the renovation.

• Document expenses. You’ll need to maintain accurate financial records throughout the project. Keep a careful record of all repair costs and holding costs.

• Complete a final walk-through. Before dismissing the construction team, conduct a thorough review of the property, confirming that all work has been done to your satisfaction.

Getting Ready to Sell Your Flip

• Stage the property. Staged homes statistically sell faster and for more money than non-staged homes.

• Get professional listing photos taken. In most cases, your listing agent will pay for the photos. Make sure you’re happy with the photographer your agent uses and that you’re satisfied with the photos.

• Price your listing correctly. After all the time, effort, and money you’ve invested, you may be tempted to over-price the house. But this strategy nearly always backfires. Rely on your real estate agent to pull comps and help you determine the fair market value for the renovated property.

• List the house on the market. Your agent will list the house on the MLS (Multiple Listing Service) and begin marketing the listing. Do your part by making sure the house is easily accessible and constantly clean.

• Review offers. Offers are about more than the price. Pay attention to terms that could help or hinder your deal, like financing, for example. All-cash offers are preferable, followed by conventional financing, then government-backed loans (which have additional requirements and take longer to close).

• Complete the transaction and plan your next flip!

Save Time and Effort by Flipping with Gatsby Investment

• Rather than funding the entire project yourself through substantial cash outlays and debt financing, you can invest in a flip with Gatsby for as little as $10,000.

• Gatsby has a team of experienced professionals who handle every detail of your flip: scouting properties, negotiating purchases, designing the rehabbed property, managing the renovations, and reselling the completed project.

• Having expert project management provides more favorable yield potential than managing the project on your own.

• With Gatsby’s flexible offerings, you can convert your initial rehab investment into a long-term rental property investment (for select offerings).