How to Find Houses to Flip: Top Sources & Methods

House flipping involves acquiring properties, renovating them, and reselling them for a profit. Success depends on the initial purchase price and the after-repair value. Understanding various sources for finding suitable properties is a primary step for this investment strategy.

Leveraging Online Platforms and Databases

Online platforms and databases offer extensive resources for locating potential flip properties, providing a convenient way to search a broad market. These digital tools allow investors to filter properties based on specific criteria, making the initial search more efficient.

The Multiple Listing Service (MLS)

The Multiple Listing Service (MLS) is a primary source of property information for real estate agents. While direct access is restricted to licensed agents, investors can work with an agent to set up customized searches based on criteria like price ranges, property types, and neighborhoods. Agents can also provide detailed reports, including historical sales data and market trends. This collaboration allows investors to access a comprehensive stream of available properties.

Major Real Estate Websites

Major real estate websites like Zillow, Redfin, and Realtor.com aggregate listings, often pulling data from the MLS. These sites provide powerful search filters to narrow options by property type, price, and number of bedrooms and bathrooms. Investors can use keyword searches such as “fixer-upper,” “as-is,” “needs work,” “distressed,” or “TLC” to find properties needing renovation. Setting up automated email alerts on these platforms ensures investors are notified promptly when new listings matching their criteria become available, offering a competitive edge.

Online Auction Sites

Online auction sites specialize in properties like foreclosures, short sales, and bank-owned (REO) homes, often at discounted prices. Platforms such as Auction.com, Hubzu, and RealtyBid offer properties not found on traditional listing sites. Navigating these sites requires understanding auction rules, which often include cash payment or a significant down payment, and properties are usually sold “as-is.” While platforms provide details, thorough due diligence, including title searches and property inspections, is crucial before bidding.

Cultivating Off-Market Opportunities

Finding properties not yet listed on the open market, known as off-market opportunities, can provide a significant advantage by reducing competition and potentially leading to more favorable pricing. These methods often require proactive effort and direct engagement.

“Driving for Dollars”

“Driving for dollars” involves investors driving through neighborhoods to find neglected or distressed properties. Signs of distress include overgrown yards, boarded-up windows, deferred maintenance like peeling paint or damaged roofs, and vacant appearances. Once a promising property is identified, the investor notes the address and uses public records to identify the owner for direct contact.

Direct Mail Campaigns

Direct mail campaigns involve sending letters or postcards to property owners meeting specific criteria, such as absentee owners or those with code violations. These campaigns target individuals motivated to sell but who have not yet listed their property. Messaging should be clear, concise, and convey benefits like a quick, hassle-free sale without agent commissions or extensive repairs.

Networking

Networking with real estate professionals can uncover off-market deals through referrals. Building relationships with agents specializing in investment properties or foreclosures provides access to unlisted properties or leads. Wholesalers find distressed properties, contract them at a discount, and sell the contract to flippers for a fee, typically ranging from $5,000 to $20,000. Contractors, property managers, and other local professionals often encounter properties in disrepair or owners looking to sell quickly, making them valuable contacts.

Community Engagement

Spreading the word within local communities involves letting friends, family, and local businesses know you are looking to purchase distressed properties. This informal networking generates leads from people who know someone looking to sell without a traditional listing process. Attending local real estate investor meetups or community events can also facilitate these connections, expanding your network of potential leads.

Accessing Public Records and Specialized Data

Public records and specialized data sources offer another avenue for identifying properties with potential for flipping, often revealing properties that are not yet widely advertised. These resources provide insights into a property’s financial and legal status, which can indicate a motivated seller.

County Tax Records

County tax records identify properties with delinquent property taxes. These records, accessible through the county assessor’s office or treasurer’s website, highlight properties where owners struggle with financial obligations. Long-standing tax delinquencies may lead to tax lien or tax deed sales, providing opportunities for investors to acquire them at a lower cost. However, acquiring properties through these sales involves specific legal procedures and potential risks, such as existing liens or redemption periods, requiring careful research.

Court Records

Court records, maintained by the county clerk’s office or accessible via court websites, reveal properties in probate or pre-foreclosure proceedings. Probate properties are part of an estate where heirs may sell quickly, often “as-is,” to settle the estate. Pre-foreclosure filings indicate a homeowner has fallen behind on mortgage payments, and the property may face foreclosure. Contacting owners during this stage can offer a chance to purchase the property directly before public auction, benefiting both the owner and investor.

Code Enforcement Lists

Code enforcement lists, maintained by municipal or county departments, detail properties with numerous violations. These violations, from structural issues to unkempt exteriors, signal neglected properties and potentially distressed owners. Accessing these lists identifies properties needing significant repairs, suitable for flipping, as owners may be motivated to sell due to repair burdens or potential fines. Some jurisdictions make these lists publicly available online, while others require an in-person visit or formal request.

Specialized Data Providers

Specialized data providers aggregate and analyze public information to create targeted lists for real estate investors. These services compile data from sources like tax records, court filings, and code enforcement lists to identify properties meeting specific criteria, such as high equity, absentee owners, or pre-foreclosure status. While typically involving a subscription fee, these services save investors time and effort in identifying potential deals, streamlining data acquisition.