Where to Find and Flip Houses [For First Time Investors] (2024)

Flipping houses is a very lucrative real estate investment strategy when executed well. However, we all need a bit of a push in the right direction when we’re starting out. That’s where we come in!

Your first step is to narrow down your target geographic market. And, if your budget allows, buying real estate to flip in areas with good amenities such as access to open space and great schools, will make your flip easier as well as draw you bigger profits on your investment.

Once you’ve identified this area, there are several places you may discover your dream fix and flip. Keep reading as we walk you through them step-by-step.

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1. Foreclosures

If you’re wondering how to find cheap properties to flip, foreclosed properties are a good place to look to find good deals.

When you buy a foreclosed property, you’re purchasing a house that a bank had repossessed. This is usually because a borrower failed to make mortgage payments. More often than not, these properties need a little love. As a result, you want to ensure that if you purchase a foreclosed property, you factor in the cost of renovation. On top of that, you should maximize your ARV.

So, where can you find foreclosed properties? Firstly, there are realtors who specialize in working with foreclosed properties. Also, a simple scroll through a Zillow listing site can provide good - and free - results. You can even check out the Federal Housing Administration (FHA) or Department of Housing and Urban Development websites.

Another option is to search through public records at your local County Recorder’s Office or drive around the neighborhood to look for foreclosed properties. Although a little time-consuming, you may find the perfect property. So keep an open mind!

If you’re based in New Jersey, check out our tips for buying a foreclosed home in NJ.

2. Auctions

Auction houses can be a real goldmine for finding homes to flip. This is provided they have enough cash to settle a down payment, or sometimes the full price of the property on the spot, as soon as they secure a winning bid.

Auctions are also a great way to scope out foreclosure properties — sometimes they sell hundreds per day — as they tend to publish property lists several weeks before the auction date. However, make sure you do some background research so that you go in prepared.

When you actually get to the auction house and start bidding, it can be very easy to find yourself caught up in the excitement of the process and start bidding beyond the limits you set yourself beforehand. So beware of catching bidding fever!

Furthermore, be wary of inheriting a property with liens attached to it upon purchasing. That being said, If you’re an experienced investor, you may feel comfortable navigating this. However, if you want to avoid this, have your title insurance secured before you make any auction property purchases.

Check out our guide on how to buy foreclosures at auction and ensure you come out on top in the auction hall.

3. Short Sales

Another great way to find and flip houses is to contact homeowners who may be willing to initiate a short sale on their house. This usually amounts to selling for less than the remaining balance due on their mortgage and at a substantial discount.

Short-sale properties are listed on most real estate websites. However, many brokerages also provide lists of them for investors who might be interested. Alternatively, you can sign up for access to the Multiple Listings Service (MLS) — which is only available to licensed realtors or appraisers — where you’ll also find short-sale properties listed, albeit not always flagged as such.

It’s worth bearing in mind that on these sites, short-sale listings could also appear as “headed for auction,” “notice of default,” or “subject to bank approval.”

4. Estate Sales

Still Googling “how do flippers find houses?” Well, another route for flippers looking to find the perfect fixer-upper is to look for estate sales initiated usually when a property owner passes away.

Details of available estate sale properties can be found on estate sale-specific listing sites. On top of that, you can also look for information on estate sales at your local County Clerk’s office.

5. Direct to Seller

Why not take matters into your own hands? Start approaching homeowners whose properties aren’t listed yet and make them offers directly.

Closing Thoughts

As soon as you know where and how to find houses to flip, tracking down real estate deals becomes an easy process.

As time goes on, you’ll also learn what properties work best for your fix and flip strategy, how much you can afford to spend on renovation costs, and ultimately how much risk you are prepared to take on.

Once you’ve found what works for you, it’s simply a matter of repeating and refining your fix and flip strategy over time.

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As a seasoned real estate expert with years of hands-on experience in property investment and house flipping, I can confidently provide insights into the strategies and concepts mentioned in the article you provided.

The practice of flipping houses involves acquiring properties at a lower price, renovating or improving them, and then selling them for a profit. Let's break down the key concepts mentioned in the article:

Target Geographic Market: Identifying the right location is crucial for successful house flipping. Areas with good amenities such as open spaces and quality schools tend to attract more buyers, making it easier to sell and yielding higher profits.
Foreclosures:
- Properties that have been repossessed by banks due to mortgage default. Often sold at a lower price, these houses usually require renovations.
- Ways to find foreclosed properties: Realtors specializing in foreclosures, online listing sites like Zillow, government websites (FHA, HUD), public records at County Recorder’s Office, and exploring neighborhoods.
Auctions:
- Auction houses offer opportunities to purchase properties, including foreclosures. Property lists are usually available weeks before the auction date.
- Caution is advised to avoid overbidding or acquiring properties with undisclosed liens. Background research and securing title insurance beforehand are recommended.
Short Sales:
- Homeowners sell for less than the remaining mortgage balance, offering potential discounts.
- Listings available on real estate websites, some brokerages, and the Multiple Listings Service (MLS), though not always explicitly labeled as short sales.
Estate Sales:
- Properties sold typically after an owner's passing. Information can be found on estate sale-specific listing sites or through local County Clerk’s offices.
Direct to Seller:
- Initiating contact directly with homeowners whose properties aren't listed yet.
- Methods include working with a real estate agent, networking at real estate meetings, conducting direct mail campaigns, door-to-door introductions, or seeking referrals from neighbors.

Each approach requires different levels of due diligence, negotiation skills, and market understanding. It's essential to assess renovation costs, potential risks, and profit margins when considering a property for flipping.

Ultimately, successful flipping involves consistent learning, adapting strategies, and refining approaches based on past experiences.

Feel free to reach out if you need further guidance or financing options for your fix-and-flip ventures.