House flippers purchase properties with the intent of selling them within a year. Rather than buy and hold for long-term appreciation or rental income, flippers purchase a property and then “quickly” sell it for a profit. As simple as it sounds it’s far from easy, but there are tips you can follow to improve your chances of success.

There are two types of flippers. The first type targets properties in rapidly growing markets for reselling as they are, without altering anything. The second type targets properties that could use anything from repainting and minor repairs to substantial renovation work.

Price is obviously a key factors for house flippers. It will affect your profit margin. If the purchase price is too high, there may not be much profit to make from flipping it.

Many things will affect a property’s price, from market forces to the circumstances in which it’s being sold. For instance, the seller’s situation can be revealing. An owner who’s struggling to pay the mortgage or property taxes is more likely to sell the property at a discount than someone in no hurry to sell.

The price may be right, but if a property is located where not many buyers are looking, you will struggle to sell it. How long listings in your area of interest stay on the market can tell you a lot about how buyers perceive it. An area with poor transport links can also be telling.

With the target neighborhood chosen, consider the property’s condition. The property’s condition will determine how much you will need to spend on renovations. The purchase price may be well below the market price for similar homes, but the required renovations could be prohibitive.

Renovations also take time. So, whatever repairs are needed, be sure they can be completed in a reasonable period of time. The longer a property sits on the market, the more you’ll spend on interest, insurance, and utilities.

Most flippers look to property auctions and online platforms for deals, but these are the places many other flippers are also looking. Besides, auction properties are sold as is, with no guarantee regarding their condition.

Success may come down to to whom you know. By networking with local banks, agents, and real estate investors, you can be privy to insider information regarding off-market properties.

Many people have lost money trying to flip properties because they thought it would be easy. Common house-flipping mistakes include a lack of time, finances, skills, knowledge, and patience. Some flippers skimp on due diligence and professional help only to overpay or overspend on renovations.

House flipping entails risk, just like any other business. Sometimes seemingly minor renovations balloon, resulting in cost overruns. Other times, the timing is off. You could also do everything right - the right property in the right location for the right price - and still struggle to sell the property.