The Who, What, When, Where and How to Fix and Flip Real Estate for a Profit

As a real estate investor, I tend to favor the buy and hold strategy such as with a turnkey investment property. As it does take some money for a down payment of the buy and hold property, one of the best ways I have found to acquire this down payment is through doing an occasional fix and flip. Flipping is not for the faint at heart and indeed requires a great deal of diligence and understanding of the real estate market and where the market is going. What properties make the best flip potential and a plethora of other things you will want to consider. The Who, What, When, Where and How to Fix and Flip Real Estate for a ProfitOften the most overlooked aspects are the Who, What, When, Where and How to do a successful flip. Today I want to focus on the Who, What, When and Where. We can touch on the how and then elaborate in the next post on how to fix and flip for profits.


This is easy of course, but entails more than just you. If you are new to flipping a mentor will be paramount. You will also want to have your support team in place.

    • Lenders / hard or private money sources if you do not have cash
    • Realtors
    • Accountants
    • Attorneys
    • Tradesmen: contractors, painters, electricians, plumbers, landscapers, etc.
    • Title services

What to buy:

This depends a lot on you and your risk tolerance, typically the single family homes are the most highly sought after and therefore the most liquid investment class.

As you always hear the worst property in the best neighborhoods will give you best returns.

The 3 bedroom, 2 bathroom home with a 2 car garage commonly known as the 3/2/2 is the most highly sought after home in the country. Identifying what the median home price is and flip a property that will sell for around the median price will be your easiest and most liquid investment class.


Flipping has great potential for profits. You can optimize your profits when the market is in an upswing. Flipping in a buyers’ market makes little sense. To best win in the flipping game you want to acquire a property at the tail end of a buyers' market where you can buy it cheaper and be able to sell it as it transitions into a sellers’ market.

Where to buy:

Remember the rule of Location! Focus on what your exit strategy is. Often it is to sell to a retail buyer (an end user who will move their family in to the home). So think what they want, good schools, near shopping and employment. You want to invest in areas considered to be within the path of progress.

How to fix and flip:

This is where a good mentor comes in. keeping your emotions out of it and sticking to a budget and a plan is paramount. It requires diligence and discipline. Many things you want to consider when doing a fix and flip:

  • The acquisition
  • The repairs
  • The labor
  • The holding cost
  • Marketing the property for sale
  • Closings

Understanding basic construction and the mechanics of a house is very important when buying and understanding what needs to be done for renovation purposes... without this understanding you may run into a lot of surprises.

Knowing how plumbing and electric really works safely and efficiently. Knowing that electric outlets and lights may work, but still not be wired properly is key to eliminating surprise expenses.

Knowing building code requirements and how when renovating you often have to update more than you wish to in order to satisfy those building codes.

The how to flip can be very detailed and lengthy, I could make several post on this very topic alone.

Next post I will dive deeper into How to Fix and Flip for Profits.