The average profit received by property investors from flipping a house is $60,000. A common mistake among new investors is not knowing how to flip a house in a timely manner. They end up flipping 1 or 2 houses per year when they could flip 5-6, causing them to miss out on significant profits.
In this article, we answer the question “How long does it take to flip a house?” by reviewing the house flipping timeline. Continue reading if you want to maximize both your time and profits on your next house flip.
Choosing the Property
The property you choose directly affects the answer to the question “How long does it take to flip a house?” You want to be sure you select the right house based on a number of factors. The top factors to consider are finances, location, and physical characteristics.
Determine Your Finances
When it comes to flipping a house, finances are key, as the home flipping process is a source of income for house flippers. The most obvious financial consideration is how much it will cost you to flip the house versus how much you will receive from the sale of the property.
Profit in this case is difficult to calculate, especially as you begin the process, since the final sale amount will be an educated guess based on similar properties, recent sales, and projected interest in the property. This is why you need to do your research before purchasing a home.
This is also challenging because you won’t know exactly what the final renovation costs will be. It’s important to set a budget, but it’s also important to realize the budget is an estimate.
Once you have your relative numbers figured out, you can start searching for homes in your price range.
A lot of considerations relating to the home flipping process are dependent on the location of your property. The value of a home is subjective based on a number of factors, with location being at the top.
Take a look at the neighborhood and see what kind of people reside there such as young singles, families, or senior citizens. This will help you determine what is important to help your home sell.
For example, when it comes to flipping a home in a family neighborhood, you’ll want to be sure there are good schools nearby. You’ll also want to check the crime rating for the area to make sure it’s safe to attract families to the home.
Part of knowing how to flip a house is knowing which characteristics to watch out for. You want to select a home that is competitive in the area in terms of square footage, number of beds/baths, and other unique details.
You want a listing that will stand out in the best possible way. However, make sure it stands out within reason. For example, doubling square footage may be too costly for people in a particular neighborhood and may negatively impact your ability to sell.
The Home Flipping Process and Timeline
Once you have the right property, you’ll need to figure out how long does it take to flip a house of the same condition and size. A lot of the home flipping process is guesswork, but the more experience you have, the better estimations you’ll be able to make.
The house flipping timeline is no exception. While each property is unique and dependant on a multitude of factors, you can roughly plan on the timelines below.
Purchasing the Property: 1-3 month
Finding and purchasing a property can be one of the quickest aspects of the house flipping timeline. It’s possible to find and purchase the right house, including taking time to do research of the area, in under a month.
However, it can also take several months to find the right property with a good deal. This is dependent on the market and the ability of your real estate agent to find you a good deal. Plan on looking for 1-3 months for the right deal.
Renovations: 3-4 months
The actual renovation process can be a time-consuming part of flipping a home. It also can vary the most depending on the condition and size of the home.
You can speed up this process by staying organized and working with a great team. Alternatively, you can opt for a DIY project, but you should expect this to take longer than hiring a team of professionals.
Whichever route you choose, make sure you are actively involved in the process so you can handle any issues that might arise before they become costly.
Selling the Property: 1-2 months
The selling aspect of the home flipping process may seem like the quickest and easiest part. While you don’t have to put in as much work as buying or renovating, it can actually be the most time-consuming depending on the current real estate market.
This is often frustrating for home flippers because they have little control over how long it will take their property to sell. What they can do is make sure there is adequate marketing, and then they should price competitively, maximize curb appeal, and utilize other selling tips.
Why Time Matters
The house flipping timeline is likely the most important consideration in the entire process. The longer flipping a home takes, the more money you lose with time.
Plus, the longer your listing sits, the less appealing it will seem to prospective buyers. Moving quickly is the best way to maximize your process.
How Long Does It Take to Flip a House – Now, You Know
How long does it take to flip a house? Even with the best estimations, the answer is usually ‘it depends.’ Whether this is your first and only time flipping a house or you plan on making this a career, one thing is certain: timing is the key to success.
To get started flipping houses, start the loan application process today.