How Long Does It Take To Flip A House? [For A New Investor]

How Long Does It Take To Flip A House?

The house flipping process can be an exhilarating endeavor for a new investor. House flipping refers to buying a house at a lower market value, investing in necessary repairs and renovations, and then selling the house at a higher price to make a profit. The question, "how long does it take to flip a house?" is common among new investors.

To flip a house effectively, you’ll need to know various elements that contribute to the time it takes. The process could take months or sometimes more than a year. Understanding the house flipping timeline will empower you as a real estate investor, ensuring you stay on top of your game in this competitive market.

House Hunting: The First Step to Flip a House

Finding the right house to flip can be a challenging and time-consuming process. It can take months to find the ideal property due to market conditions, the need for a desirable location (such as a hot neighborhood or an up-and-coming area), and competition with other investors and buyers. Using real estate agents, leveraging MLS, or looking for off-market properties could help you find and buy the perfect investment property.

Additionally, bidding wars can drive up the asking price of a potential flip property, impacting the overall profitability. So, it's crucial to find the right property at the right price, which could take anywhere from a few weeks to a few months.

Below are some methods that can aid your house hunting process:

• Networking with Local Real Estate Agents: They are often the first to know about properties about to hit the market. Cultivating relationships with real estate agents can give you early access to potential houses before they're listed.
• Using MLS (Multiple Listing Service): This is a comprehensive database of listed properties available to real estate agents and brokers. Although it's highly competitive, you can find suitable properties if you're diligent and quick to act.
• Exploring Off-Market Properties: These are homes that aren't publicly advertised or listed. You can find them through word-of-mouth, networking, or direct outreach to homeowners.
• Attending Foreclosure or Auction Sales: Foreclosed properties and auction sales often offer houses below market value, making them potentially lucrative flips. However, these often come with higher risks and may require cash purchases.
• Exploring Wholesale Real Estate: In this case, a real estate wholesaler finds a seller, puts the house under contract, and then sells the contract to an investor. It's an indirect way of buying a property, but it can save you time on the house hunting phase.

These approaches offer a mix of traditional and creative ways to find houses to flip, enhancing your chances of securing the perfect property for your house flipping venture.

Securing Financing: Cash, Traditional Home Loan or Hard Money Loan?

As a new real estate investor, you’ll need to secure financing to buy the house. How long this takes depends on your method of financing. If you’re using cash, the process can be relatively quick. But, if you need a traditional home loan or a hard money loan, it can take longer due to lender approval and processing times.

A traditional home loan can take 30 to 45 days for approval, while a hard money loan—popular among house flippers due to the quick approval time—can take as little as a few days to a week. Nevertheless, you need to be aware of the high interest rates and short repayment terms associated with hard money loans.

Home Inspection and Purchase

Once you find the right property, you’ll need to conduct an inspection to determine the home’s state and identify necessary repairs. This process takes about a week. Following the inspection, you can negotiate the purchase price based on the findings.

These steps will ensure you make a wise investment and have a big impact on the money you can make:

• Hiring a Professional Inspector: Don't skip on a professional home inspection. They have the expertise to identify potential issues that could become significant problems down the line. It's an upfront cost that can save you from unexpected expenses later.
• Estimating Repair Costs: Use the inspection report to estimate your repair costs. It's crucial to understand what you'll need to pay for renovations before committing to the purchase. This will help you create a more accurate budget and assess potential profitability.
• Determining the ARV: ARV, or After Repair Value, is the estimated value of the property after you've completed the necessary repairs and renovations. Calculating the ARV accurately will help you understand how much you could potentially sell the property for, thereby gauging the money you can make.
• Negotiating Purchase Price: Use your inspection report and estimated repair costs as leverage when negotiating the purchase price. If the house requires significant repairs, you may be able to negotiate a lower price, offsetting your renovation costs.
• Considering the Neighborhood: Don't just look at the house; consider its location too. Is it in a hot neighborhood, or an up-and-coming area? The appeal of the neighborhood can have a big impact on the final sale price of the property.

If you're thinking about flipping houses, these practices can help you make informed decisions about your purchases. By taking these steps, you increase your chances of a successful flip and potentially maximize your profits.

Closing the deal and becoming the homeowner can take between 30-60 days, sometimes longer if you’re using a loan to buy the property. FHA loans, for instance, have stringent property standards that could extend this process.

Renovation Time: How Long Does It Take to Flip a House?

When planning to flip houses, one of the most significant stages in the process is the renovation or rehab. This phase of flipping homes has a direct influence on how long it takes to flip a house.

How long it takes to renovate a house depends on its initial condition and the extent of renovations needed. If you’re handy and opting for DIY, you may save money but spend more time. For larger projects requiring contractors, plumbers, or electricians, your timeline will depend on their schedule and the complexity of the work.

Minor renovations such as a fresh coat of paint or enhancing curb appeal can take a few weeks, while significant upgrades like kitchen remodels or adding a bathroom could take several months. All in all, you’ll need to allocate between one to six months for the renovation phase.

Below are the key factors to consider during the rehab phase, their implications, and the time it might take:

• Extent of Damage and Necessary Repairs: This forms the basis of your renovation plan. More damage equals more time needed for repairs. For instance, a house needing minor repairs like painting and changing fixtures could take a few weeks, while one requiring major structural changes or systems replacement could take up to a few months.
• Professional Help versus DIY: If you're a skilled DIY-er, you could save on labor costs but this could extend your timeline. For complex projects requiring professional help, hiring contractors, electricians, or plumbers would expedite the process, potentially cutting down renovation time to a few weeks to a month, but it will increase your costs.
• Permit Approval: Depending on your local regulations, you may need permits for certain renovations. The time taken to secure these permits can vary greatly - from a few days to a couple of months. Factor this into your timeline, especially for extensive rehabs.
• Material Availability: The availability and delivery of necessary materials can impact the renovation timeline. Shortages or delays in delivery could push your renovation time by a few weeks.
• Budget Constraints: Your budget will also determine how long renovations take. If you need to spend time sourcing funds during the rehab process, this can prolong your timeline and potentially delay your ability to flip the house quickly.
• Unexpected Challenges: Unforeseen issues like finding mold, plumbing issues, or electrical problems once renovations begin can add weeks or even months to your renovation timeline.

Considering all these factors, renovations can take anywhere from a few weeks to six months or more. It's important to budget not only your money but your time as well, in order to break even or make a profit when you sell. Being efficient and proactive in managing these elements can help streamline your rehab process, ultimately reducing the time it takes to flip a home.

Remember, a well-planned and executed renovation can significantly increase the property's value, making all the hard work worth it in the end.

Putting The House Back On The Market: Selling The Home

Once renovations are complete, it’s time to sell your house. The time it takes to sell a house depends on various factors like market conditions, the asking price, and the property’s appeal to potential buyers.

Real estate agents or realtors play a vital role in this stage. With their deep knowledge of buying and selling houses, they can help set a competitive asking price and market the property effectively to attract buyers. On average, it might take one to three months to sell your house after listing it.

Carrying Costs: The Often Overlooked Factor

The carrying costs during the flipping process are an essential factor that many new investors might overlook. These are costs associated with owning a house, including mortgage payments, property taxes, insurance, utilities, and maintenance. The longer it takes to flip a house, the higher these costs will be.

For instance, if it takes 6 months to flip a house, these costs can add up and take a big bite out of your potential profits. Therefore, it’s vital to factor in these carrying costs in your budget and timeline.

As a new investor, remember to plan for potential setbacks and keep a buffer in your time and budget. This preparation will not only improve your chances of profitability but also ensure that you break even or better in your house flipping journey. It's not always a smooth road, but with the right information and preparation, you'll be able to navigate the world of house flipping successfully.

Conclusion: House Flipping Timeline

In the world of house flipping, the time it takes to flip a house can vary significantly. On average, you might find it takes around 6 months to a year, if not longer. This timeline depends on numerous factors, including finding and buying the right property, securing financing, performing necessary renovations, and ultimately, selling the house.

Although flipping a house quickly might seem attractive, a more extended timeline might make more sense if it leads to a higher resale value. Therefore, the balance between speed and spending adequate time to guarantee a successful flip is key to making a profit.

While flipping a house quickly may seem like the most lucrative option, a longer timeline might make more sense if it leads to a higher resale value. So, it's about balancing the need for speed with the need to spend enough time to ensure a successful flip and make a profit. 

In this journey, one effective strategy to streamline your process and save precious time is buying real estate leads. By doing so, you can access leads of motivated sellers who are ready to close the deal. A platform like Property Leads makes this simple, providing quality leads tailored to your needs.

Cut down your house hunting time significantly and focus more on flipping and making profits. Are you ready to take your house flipping venture to the next level? Sign up for Property Leads today, and let us help you succeed in your real estate investments.