How Long Does it Take to Flip A House?Jan 29, 2024
Do you have a passion for breathing life back into property? If so, I’m glad you’re here! Today, let's dive into one of my absolute favorite topics: house flipping! I'm absolutely ecstatic to share my wealth of experience in this field! Having mentored countless investors and DIY enthusiasts, I've witnessed firsthand the journey to flipping triumph. Whether it's seeing the hidden potential in a rundown property or strategically boosting its value, I've been a steadfast guide through it all. Trust me, there's nothing quite like the electrifying rush of turning a vision into reality!
Flipping houses has become increasingly popular in recent years. With strategic planning and marketing, investors from all walks of life have caught on to the potential money-making opportunities that arise from finding fixer-uppers and flipping them for a profit.
Starting a house-flipping business is a great way to get started in the real estate business. However, I’ve learned over time that the success of a house flipping business is affected by several factors, including market fluctuations, asking price, condition of the house, and so much more.
It’s important to consider these factors when forecasting a timeframe and projecting costs. For this post, I’m going to discuss the average time it takes to flip a house and share a tentative timeline for the flipping process. It's my hope that this post answers all of your burning questions and gives you the clarity to start your next project with confidence! If you are unsure where to start, I am here to guide you. Schedule a complimentary discovery call.
How Long Does it Take to Flip A House?
It can take anywhere from 4 to 12 months, on average, to flip an average-sized house. Typically, the more experienced and organized you are, the shorter the process is.
However, be aware that several factors can affect your timeline, including the condition of the investment property, market fluctuations, and your asking price.
With that in mind, here is a general timeline to show you what you can expect when flipping houses.
If you’re seeking an experienced project manager, or just seeking extra guidance as you navigate the complexities of real estate, project management, or design, I am dedicated to your unique goals and here to transform your vision into reality. Let’s connect!
House Flipping Timeline
Finding A House
The first and most important step in the house-flipping process is finding a house. How long it will take you to find a house to flip depends on real estate market conditions, how many appropriate properties are available, and your requirements for an investment property.
For most house flippers, it takes anywhere from a few days to several weeks to find a house.
Not sure where to start? I’ve got you covered! Read this post for some great tips on how to find houses to flip!
The closing process begins as soon as you find a property to purchase. Depending on how you purchase the property, the closing process usually takes 30 to 60 days.
Property investors typically purchase a home one of two ways: with a traditional home loan or a hard money loan.
A traditional home loan from a bank usually gives investors a lower interest rate and a longer repayment period than a hard money loan. Some banks, however, might refuse to provide a loan because of the risk associated with house flipping.
This process also tends to take longer, which opens up the possibility that you could lose out on the property to an investor who can close the deal sooner. However, you can potentially speed things up by getting pre-approved ahead of time.
A hard money loan is the more popular option because it’s just like using cash to purchase the property and doesn’t take as long to get as a traditional home loan. However, there are a few things to keep in mind before including hard money loans in your investment strategy.
For one, the interest rates for hard money loans are higher than they are for traditional home loans. Second, the length of the loan is usually 12-24 months. And third, you must pay back the full loan amount at the end of the term.
Hard money lenders are usually more open to lending to real estate investors because the property can be used as collateral to pay back the debt if necessary (hopefully not!).
The renovation process can take anywhere from 45 days to several months depending on the scale of your project. One way to ensure a renovation is completed as quickly as possible, without any shortcuts on quality, is to use a reliable team. Hiring a professional project manager is a fantastic way to take some of the weight off your shoulders without worrying about whether your project will run smoothly, on time, and within budget.
As soon as you get the keys to the property, you can begin renovating it. Keep in mind that how long it takes to flip the home largely depends on the scale of your renovations. It’s a good idea to set a budget beforehand, to ensure greater profit margins and a better return on investment when all is said and done.
Once you set your budget, you can decide how to renovate and improve the house. Check out my posts on home renovation tips and house renovation before and after to get some ideas on how to transform your investment property.
Selling The House
Next, it’s time to sell your house! This step can take anywhere from a week to several months.
Sure, the renovation is fun, but when flipping homes, selling the property is where you get to see your real estate investment pay off. If you’re new to flipping houses, consider hiring a real estate agent. They take care of all the details and ensure the process runs as smoothly as possible. A real estate agent can also determine which sale price will attract buyers and yield a good return.
If everything runs smoothly, you can potentially flip a home in under 6 months.
Realistically, you can expect to spend 6-12 months flipping a house. The less time it takes, the greater your profit. But even if it takes a little longer than expected, you can still generate a good amount of income and find the financial freedom you’re seeking by flipping houses.
Keep in mind that proper planning and organization are crucial to ensure the process runs as smoothly as possible. You got this! I’m here for you and I want to see you succeed! To learn more about how to make money flipping houses or with other real estate investments, head over to the Cure Design Style blog.