Flipping houses can be profitable when done right. The key is buying the right property at the right price. Before you worry about paint colors or renovation budgets, you need to understand how to find homes to flip in a competitive market.
Many new investors think the hardest part is managing contractors or selling the home. In reality, the deal is made or lost when you buy. If you purchase a property with enough margin and strong resale potential, everything else becomes easier.
This guide breaks down five proven strategies that successful investors use every day. These methods will help you locate motivated sellers, spot undervalued properties, and build a steady pipeline of deals.
Wholesalers are often one of the fastest ways to access discounted properties. A wholesaler finds off-market deals, puts them under contract, and assigns that contract to an investor for a fee.
If you build strong relationships with reputable wholesalers, you can receive deals before they are widely marketed.
Start by attending local real estate meetups and joining investor groups online. Introduce yourself, clearly explain your buying criteria, and show that you can close quickly. Serious wholesalers prefer working with reliable buyers who do not waste time.
When reviewing a wholesale deal, always run your numbers carefully. Look at comparable sales, estimated repair costs, holding costs, and resale value. A good deal should leave room for profit after all expenses.
Wholesalers can be powerful partners, but due diligence is your responsibility too.
Many investors overlook how valuable the right real estate agent can be. An agent who understands investment properties can bring you opportunities that never hit the public market.
Investor-friendly agents often know about:
When choosing an agent, ask about their experience working with flippers. Do they understand after repair value? Can they help analyze comparable sales? Are they comfortable moving quickly?
Be clear about your goals. Share your target neighborhoods, price range, and renovation comfort level. The more specific you are, the easier it is for them to bring you the right opportunities.
Strong relationships lead to repeat deals. If you close successfully and communicate well, agents are more likely to prioritize you when new opportunities arise.
Technology has changed the way investors operate. Instead of guessing which properties might be distressed, you can now access detailed ownership data, property history, and marketing tools in one place.
DealMachine is a real estate data software platform designed specifically for investors to access deep data insights. It combines property data with tools like list building, direct mail marketing, and driving for dollars.
The platform allows you to build targeted lists based on filters such as absentee owners, high equity, or long-term ownership. Once your list is built, you can launch direct mail campaigns directly through the software.
With driving for dollars, you can scout neighborhoods for distressed homes and instantly pull ownership information through the app. Rather than writing down addresses and researching them later, the data is already connected.
This creates a streamlined system:
For investors learning how to find homes to flip, having both data and marketing tools in one system saves time and increases consistency. Instead of waiting for deals to appear, you proactively generate opportunities.
Not every great deal comes from software or public listings. Some of the most profitable flips come from relationships.
Local professionals regularly work with homeowners facing major life changes. These situations often create motivation to sell quickly and without repairs. When you position yourself as a reliable investor, you can become their go-to referral.
Consider building connections with:
These professionals often encounter inherited homes, distressed properties, or owners who simply need a fast and simple sale.
Start by introducing yourself as a local investor who buys properties in as-is condition. Clearly explain your buying criteria and emphasize that you are easy to work with and able to close quickly.
Professionalism matters here. Return calls promptly. Present clean offers. Follow through on your commitments. When referral partners trust that you perform consistently, they will continue sending opportunities your way.
Real estate auctions offer another path to discounted properties. These may include foreclosure auctions, tax deed sales, or bank-owned property auctions.
Auctions can provide strong deals, but they require preparation and discipline.
Before bidding, research the property carefully. Study comparable sales, estimate renovation costs, and verify title status whenever possible. Some auction properties cannot be inspected beforehand, which increases risk.
Financing must be secured in advance. Many auctions require immediate payment or proof of funds.
Set a maximum bid based on your projected profit margin and do not exceed it. Emotional decisions can quickly eliminate your returns.
Want to dive deeper into making bids on auction properties? We were joined by Armando Banuelos on the DealMachine REI Podcast, where he secured a courthouse deal live on the episode. Watch it below.
Finding properties is only one part of the equation. Understanding what to know about flipping houses before making an offer protects your profit.
Start with after repair value (ARV). This is the estimated resale price once renovations are complete. Overestimating this number is one of the most common mistakes new investors make.
Next, build a detailed renovation budget. Include labor, materials, permits, holding costs, and a contingency reserve for unexpected repairs. Hidden issues are common in older homes.
You must also account for carrying costs. Mortgage payments, utilities, insurance, and property taxes reduce profit every month the home is not sold.
Finally, study buyer demand in your target neighborhoods. Some areas support high end finishes. Others respond better to clean, functional updates. Matching your renovation level to market expectations increases your chance of a fast sale.
When you combine strong sourcing strategies with a clear understanding of what to know about flipping houses, you reduce risk and increase consistency.