Flipping houses can be lucrative if you have a knack for finding properties and the funds to invest in renovating them. If you are thinking about generating extra income by flipping houses, one of the first things you will have to figure out is how to find flip houses worth buying.

How To Find Flip Houses Online

With 8% of all home buyers already owning one or more investment properties, real estate can be competitive.

You can occasionally find flip houses online. Two-thirds of all realtors have websites, and there are popular websites and apps you can use to see the latest listings in a specific zip code.

Try looking for a home that recently had its asking price reduced to identify potential flip houses. Keywords like “as-is” can also help you find homes in need of some TLC.

Identifying homes that have been on the market for a while is another good way of finding flip houses. Potential buyers might pass these houses over because there are extensive repairs needed. After a time, the sellers will typically accept a lower offer.

On average, houses have stayed 14 days on the market before selling. While this number can vary in different locations, a home that has been for sale for three or more weeks without any buyers could be a good candidate for your real estate venture.

The downside of using online listings to find flip houses is the vast number of listings. It is best to establish a few criteria to narrow it down, such as knowing exactly how much you want to spend or identifying an area where you would like to flip houses.

Work With Realtors

Working with realtors can give you an advantage since you might hear about new listings before they become available online.

If you want to flip houses in a specific area, reach out to realtors who have sold homes in need of repairs in the past. Building connections with REO real estate agents can also help you find flip houses.

REO stands for real estate owned and designates properties sold by banks and other entities. Banks sometimes have to work with agents to list properties if a foreclosure auction fails to interest any buyers.

Building a network of realtors is a good way to learn about flip houses as they hit the market, but you can also hire a realtor. The realtor you hire will actively look for properties that meet your criteria and might even be able to convince owners to sell their old properties. Plus, they will likely have great tips on finding flip houses where you want to invest.

Find Foreclosures

Foreclosures were up by 117% in May 2022 compared to the previous year. Foreclosure auctions are one of the most popular ways to purchase flip houses at a competitive price. There are two ways of finding foreclosure auctions:

• You can use online platforms that specialize in listing these auctions. Auction.com, Equator.com, or Realtor.com are great options.
• You can also find foreclosures via official records. Look up a city or county along with keywords like ‘foreclosure auctions’ to find a list of upcoming auctions in that area.

Foreclosures happen when an owner falls behind on their mortgage, and the lender repossesses the home. You will typically pay below market value for these homes since the lender’s goal is to get as much of their money back as possible.

However, not all foreclosures are going to be good flip houses. Many of these homes are in great shape and will attract regular home buyers. If possible, visit the home in person to determine its state and determine if it could make a good flip house.

The downside of foreclosure auctions is that you will have to buy the property with cash. You will not be able to have the property inspected or appraised, making it difficult to assess the extent of the repairs needed.

Look For Short Sales

During a short sale, the buyer makes an offer that is less than the remaining mortgage balance. The lender will review the offer before accepting or declining it. Lenders sometimes accept short sale offers to avoid going through the foreclosure process.

Short sales can be a good way to find flip houses, especially in areas where homes have decreased in value.

You can find short sales via online listings. When an owner knows they will face foreclosure soon, they sometimes decide to work with a realtor to put their home on the market and find a buyer interested in a short sale. Some real estate agents specialize in investment properties and can help you find short sales.

You also have the option of reaching out to homeowners who are close to facing foreclosure and talking them into a short sale. Since lenders must file a notice of default before starting the foreclosure process, looking for notices of default in public court records can be a way to identify potential sellers.

Learn To Generate Leads

You can generate leads by advertising the fact that you buy flip houses. Here are a few strategies you can use:

• Develop your online presence. A website or social media profiles can help increase awareness that you buy properties as-is. Plus, you can showcase your experience with previous sales to build trust.
• Direct mailing is an effective strategy for increasing awareness. Sending a simple postcard that targets the zip code where you want to invest will remain affordable while letting people know that they have the option to sell their old property.
• You can also use local advertising channels. Billboards, TV ads, and radio ads are a great way to let homeowners know you are looking for investment properties.

Some owners will feel that putting their home on the market is not a good option due to the repairs needed. Presenting yourself as an alternative by explaining that you flip houses can help convince owners to sell their property.

Reach Out to the Owners

Do not wait for an owner to put their home on the market to show interest. As long as you are polite and respectful, you can reach out to owners and let them know you would like to make them an offer.

Is there an old home in your neighborhood? Knock on the door to see if the owners would consider selling it.

You can also approach homeowners in areas where property values recently went down. For instance, a flood can cause widespread damage in a neighborhood and create opportunities for flipping houses.

If you cannot visit an area in person, Google Street View is a helpful tool for identifying properties with low curb appeal.

Once you have found a property that looks like a good candidate, you can look up public property tax records at the local assessor’s office to find the name of the owners. The local county clerk should also have public records you can use for a property search.

You can also send a letter to the current owners of a property you noticed. Introduce yourself and explain that you would like to make them an offer.

Do not be pushy when approaching owners, but do not hesitate to reach out since you will never know who will consider selling their home once they know there is interest.

Focus on the Right Area

It is easier to find flip houses if you target the right areas. A hot market means more buyers will consider properties needing repairs to offset the high average market value. On the other hand, a market with high demand means you might generate a high ROI, with the property gaining substantial value while you work on repairs.

Here are a few tips to help you narrow down your search:

• Natural disasters like floods or hurricanes have devastating consequences. You will likely see damaged properties on the market in the aftermath.
• Some areas have more foreclosures than others. For instance, Illinois saw close to 7,000 foreclosures in Q1 2022 alone. States and cities with high rates of foreclosures can be good areas for finding short sales and auctions.
• Focus on areas with little to no new construction. It is easier to find properties needing repair if you are looking in locations where the average home is several decades old. Plus, you will be able to maximize your profit since a lack of new construction tends to drive home prices up.
• No one knows a market better than the local real estate agents. Networking with agents or hiring an agent who specializes in investment properties will give you access to valuable insight regarding local trends and how to find flip houses.

Final Thoughts

Before looking for flip houses, it is paramount to determine what you are looking for, how much you are willing to invest, and where you would like to find an investment property. Online listings are a place to start your search, but you can explore a wider range of options with foreclosure listings or by reaching out to owners. Consider hiring a real estate agent to help you in your search.