Can you still make a living by flipping houses in 2021?

Can I still make money in house flipping? Many experts say YES.

How much can you make flipping houses for a living? Still a lot. ATTOM Data Solutions reports that house flipping slowed since the covid hit in 2020, but the average flip netted the seller a gross profit of $67,902, a return of 41.3%. So, yes, you may be able to make a living flipping house if you have a clear head and thick skin.

3 Things You Should Know Today

House-flipping profits are at a 20-year high

With the same numbers provided by ATTOM: The profit margins listed do not include the cost of any renovations or other fees associated with preparing the home for sale. Instead, the data focuses solely on the difference between an investor's purchase price and the property's eventual sale price. With that in mind, budgeting is critical in this situation.

You may have to offer more than you'd expect

Traditionally, investors will attempt to increase their profit margins by making an offer that is significantly lower than the list price. However, in this market, this common maneuver may not be possible. We're not only in a seller's market but there's also a nationwide inventory shortage.

According to the National Association of Realtors (NAR), inventory levels were down a record-breaking 23% in December 2020 compared to the same time last year. In addition, the months' supply of housing hit a new low of just 1.9 months. 

Because there is so much competition for every available listing when inventory is low, home prices tend to rise quickly. As a result, to remain competitive in the current market, you may find yourself having to offer more than you usually would for a property.

Your sale price will likely be higher. 

However, it is not all doom and gloom for investors. Other indicators suggest that once you've secured property and prepared it for sale, you'll be able to sell it quickly and profitably. For example, according to NAR's single-family home price data, the national median home price increased by 14.9 percent to $315,900 in the fourth quarter of 2020, compared to the same period in 2019.

Similarly, median days on the market, a measure of how long it takes for a home to sell after it is listed, has been declining recently. Data indicates that inventory is moving more quickly once it reaches the market. According to the most recent Weekly Housing Market Monitor from the National Association of Realtors, properties are selling in just 27 days, down from 47 days in February 2019.

What you need to be to flip a house. 

Persistent. If you are still a beginner, you make endless and tons of calls for a long time, and you must have an appetite for that. Get comfortable with being rejected 90% of the time by introducing yourself but still never give up. 

Resourceful. While investors must know how to depend on themselves, asking for help is still necessary at times. To attain success, you must know how to utilize your resources and connections. Real estate Facebook groups and meetup.com can help real estate investors to engage with their fellows and contact them if they are willing to collaborate on a project. 

Willingness to learn. It's not about what one owns at the start; it's about what one gains along the way and brings to the finish line. Real estate investors who are relentless in their pursuit of success know how to leverage their connections. They're also always looking for ways to improve to ensure their success in house flipping.

Let's flip!

If you have a risk appetite, a healthy bank account, and a strong stomach, you can make a good living flipping houses. Even in the year 2021, the housing market in the United States will be improving. However, flipping homes is similar to painting houses in that the preparation, rather than the actual execution, determine a good result.