10 Signs it’s Time to Flip Your First Home

Curious about how to start flipping houses but not sure where to begin? It’s certainly no easy feat, and a lot goes into making money flipping homes. Before investing large sums of money and time, it’s important to get your ducks in a row and ensure you’re fully prepared. Read on for the telltale signs you’re finally ready to start flipping homes.

Watch Flipping Showdown on Sundays at 9 p.m. ET/PT. It is also available on the Global TV App, and on STACKTV with Amazon Prime Video Channels. HGTV Canada is available through all major TV service providers.

Hand holding tv remote towards tv turned on

Eric McLean

1 / 10

You Know It’s More Than What You See on TV

We’ve all watched a show on HGTV Canada and thought, “Wow, that looks like fun!” But what we see on TV is usually a highlight reel of what actually goes into flipping a home. Anyone who’s really ready to flip their first home knows a project like this isn’t just a fleeting fancy and before even stepping foot in a flip, there’s a lot of legwork that goes into setting themselves up for success.

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Towfiqu Barbhuiya

2 / 10

You’re Financially Prepared

When you’re financially prepared, and you’ve appropriately budgeted for the cost of the home, the renovation, and unforeseen costs, you’ll be ready to take on your first flip. You’ll need to envision the best-case scenario, and the worst-case scenario. Most recommend the 70% rule when it comes to flipping homes. This means paying no more than 70% of the after-repair value of the property, minus the cost of the repairs and upgrades.

Cytonn Photography

3 / 10

You’ve Secured Funding

Part of being financially prepared might mean securing funding if you can’t cover the entire cost of the home or renovations. To be fully prepared, you should work with investors you trust, and have lawyers draw up proper contracts. This way, everyone will be on the same, legal page before you even pick up a hammer.

Charles Deluvio

4 / 10

You’ve Studied and Trained for the Right Skills

When you have studied the projects required to make upgrades and learned the necessary skills, you’ll be ready to tackle your first flip. This goes beyond watching a couple of YouTube videos. You’ll need to know the laws regarding certain renovations, and whether you’ll need permits. You’ll also need to be aware of the safety requirements. And that’s not even getting to the nitty-gritty details of actually doing the projects!

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Christina

5 / 10

You’ve Networked With Other Flippers

Before taking on the challenge of your first flip, it’s important to soak up as much knowledge as you can from experienced flippers. Don’t hesitate to ask for introductions, join groups online and look into meetups in your neighbourhood. Learning from the mistakes and successes of others can make all the difference when you’re just starting out. And having people you can call on for advice or recommendations will be a huge advantage.

Unsplash

6 / 10

You Have a Realistic Understanding of the Time Commitment

The time needed to complete a flip can be significant, especially if you’re doing it alongside a full-time job. It’s crucial to have a realistic timeline and buffer in extra time for when projects go sideways. That way you can make accurate plans and hit the market at the best time to sell.

Photo of empty new modern kitchen with wood cabinetry

Steven Ungermann

7 / 10

You’ve Studied the Market

To accurately budget for your flip, you need a deep understanding of the market. You need to know what houses are selling for, and what upgrades are necessary to achieve the selling price you need to make a profit. Do as much research as you can by going to open houses to see what’s typical of new, updated and older homes, and study reports of what those homes are listed at and actually sell for.

Eric Mclean

8 / 10

You’ve Assembled a Dream Team of Professionals

Even the most skilled flipper knows they can’t do everything singlehandedly and will need an extra set of hands at the very least. You’ll know you’re ready to take on the challenge of your first flip when you’ve assembled a team of professionals to guide and assist you. Having a contractor, while costly, is also a great way to ensure your project moves at a good pace. A contractor will also help manage tradespeople if you hire them. If you’re flipping homes on the side, and can’t focus all of your energies on this project, you should definitely research hiring a contractor.

Maximillian Conacher

9 / 10

You Know Your Neighbourhoods

When you’ve put in the time to study neighbourhoods and see where there’s potential to invest in a home that’ll offer a good return on your investment, that’s when you’ll be ready to flip your first home. Some people have a knack for catching a neighbourhood right before an upswing, but if you give yourself some time to watch other flippers, and learn about changes in the city that might make a less desirable neighbourhood more enticing, you’ll be able to make a well-researched decision fast.

Man tending to vegetable boxes in garden

Priscilla Du Preez

10 / 10

You’re Passionate About Creating Homes

Finally, but most importantly, you’ll be ready to flip your first home if you have passion for it. People might envision flipping as a get rich quick scheme, especially in Canada’s busier cities, but flipping is no easy feat, and unless you’re truly passionate about home improvement projects and creating beautiful homes for people, you’ll quickly tire of the headache. It’s only those who have real love and passion for the project that’ll find success and fulfillment flipping homes.

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