House Flipping 101: How Abel Ramirez Grew From One Flip to 45 Properties

House flipping can be one of the fastest ways to build wealth in real estate. Done right, it allows investors to turn distressed homes into profitable assets. Done wrong, it can lead to costly mistakes. That’s why learning the basics of house flipping is so important.

One real estate agent, named Abel Ramirez, demonstrates exactly how powerful this strategy can be. He began with a single flip in 2020 and now manages over 45 properties. His story highlights the key steps, funding methods, and strategies any beginner can use to build a flipping business.

Abel’s First Flip: $40,000 Profit

Abel’s journey began in Los Banos, California, a town about an hour from Silicon Valley. In 2020, he purchased his first flip for $225,000. He spent $45,000 on renovations and eventually sold the property for $352,000, netting a profit of approximately $ 307,000.

What makes this even more impressive is the timing. Abel started during the height of the COVID-19 pandemic, when supply chain delays, health restrictions, and financing issues made flipping more complicated.

He used a hard money loan for the purchase, which came with higher interest rates and fees than traditional financing. Even with those extra costs, the deal was successful enough to spark the creation of a new business.

The takeaway for beginners: Your first flip doesn't need to be perfect. What matters is completing the project, learning from the process, and generating enough profit to move on to the next deal.

Building a Flipping Business With Partnerships

One of the most common mistakes new flippers make is trying to do everything alone. Abel avoided that by partnering with his contractor from the start.

They created a 50/50 business arrangement:

• Abel handled the real estate side, including finding deals and selling properties.
• His contractor partner oversaw renovations, design decisions, and construction timelines.

This partnership solved one of the biggest challenges for new flippers: choosing the right renovations that appeal to buyers. Abel didn’t need to guess about flooring, fixtures, or layout changes. His partner had years of experience making those calls.

For beginners, this is an important lesson in house flipping: you don’t need to know everything. Surround yourself with people who do.

Copying Proven Models

Instead of reinventing the wheel, Abel looked at successful flippers in his area and copied what worked for them. He even connected with a large hedge fund that specializes in flipping homes nationwide. By studying their renovation choices and listing strategies, he applied the same ideas to his own business.

This “copy what works” mindset is key for new investors. You don’t need to come up with unique renovations or risky ideas. Most profitable flips follow the same formula:

• Buy below market value
• Renovate to meet local buyer demand
• Sell quickly to reduce holding costs

Sticking to the basics keeps projects on budget and on time.

Raising Capital From Family Investors

Once Abel proved he could flip successfully, he and his partner needed more funding to scale. Instead of relying only on hard money loans, they turned to family members.

Their pitch was simple:

• Banks were paying very low interest, sometimes just a few dollars per year.
• Abel offered 10% annual returns on investment.
• Each loan was secured with a second lien on the property, providing protection.
• They showcased past successful flips through social media and project updates.

Most family loans were between $50,000 and $60,000 per property, which Abel used for down payments, closing costs, and holding expenses. This approach enabled them to work on multiple houses simultaneously, rather than flipping one property at a time.

For new flippers, this illustrates the importance of building trust and documenting your track record. Even one successful flip can open doors to private funding opportunities.

Volume Over Big Profit

Another unique aspect of Abel’s strategy is his focus on volume rather than maximizing profits on individual properties.

He explains:

“We go after the volume mostly. We figure the more we turn, the faster it is. It ends up being more than just trying to handle a few rehabs here and there.”

Instead of holding out for the biggest possible profit on each flip, Abel prefers to keep deals moving. His business often has multiple projects in different stages:

• Five properties listed for sale
• Five properties under renovation
• New properties being acquired

This constant cycle creates steady cash flow and reduces risk. If one property sells slower than expected, the others still keep income flowing.

Focus on Starter Homes

Abel’s flips target starter homes in central California. These homes are typically priced between $300,000 and $400,000 after repairs, which keeps them affordable for first-time buyers.

Starter homes are an excellent choice for house flippers because:

• They are always in demand.
• They sell faster than luxury homes.
• They attract financing from FHA and conventional loan buyers.

For beginners learning house flipping, targeting affordable homes is often the safest path. Luxury flips can bring bigger profits, but they also carry higher risks if the market slows. 

Beyond Flipping: Testing Wholesaling

At one point, Abel experimented with wholesaling, where investors assign purchase contracts to other buyers for a fee. While wholesale real estate is a great entry strategy for some, Abel found that flipping offered larger profits.

 He explains: 

“We tend to keep them to flip because, at the end of the day, it’s a bigger spread.”

This highlights another house flipping lesson: investors should test different strategies but stick with the one that works best in their market.

Future Growth Plans

Looking ahead, Abel plans to expand his operation into something like a local hedge fund. His acquisition strategy includes:

• On-market properties listed on the MLS
• Off-market deals from networking with other investors
• Properties from wholesalers

His rule of thumb remains simple:

“If the numbers work, we try to buy it.”

By sticking to this clear formula, Abel has built a sustainable flipping business that continues to grow year after year.

Conclusion

By starting small, building the right partnerships, and focusing on repeatable systems, Abel turned one successful flip into a 45-property operation. For new investors, the fundamentals of house flipping remain the same: find good deals, renovate to meet demand, and sell quickly. Done consistently, it can grow into a long-term business that provides financial freedom.

FAQs About House Flipping

How did Abel find his first flip?

Through his connections as a real estate agent. A local agent brought the property to his attention, and six months later the numbers worked.

What financing methods are common for house flips?

Many flippers start with their own savings, then use hard money loans or private money lenders. As they build a track record, they can attract private investors, often offering fixed returns.

What type of properties are best for beginners?

Starter homes are usually the best entry point. They have strong buyer demand, sell quickly, and involve fewer risks than luxury homes.

How much profit can you expect from a house flip?

It depends on location, renovation costs, and market conditions.