What type of loan is best for flipping a house?

For those flipping multiple houses per year, I would use a portfolio lender first. These lenders offer low interest rates and fees and over time you can establish a long-term partnership. Often portfolio lenders have “rehabbing” loans, too, which allow you to borrow money for any rehabbing costs you incur.

Can you use a personal loan to flip a house?

Yes, you can use a personal loan to fund a house flip. Keep in mind, however, that you’ll likely need a strong financial footing (great credit score, low debt-to-income ratio, stable income) to secure good loan terms, and the loan amount might not be that high (usually around $100,000). The interest rates and origination fees could also be high, too.

How much money do house flippers make in a year?

House flippers make an annual average of $68,693, which is roughly $1,321 per week or $5,724 per month. But that’s only the average: you could certainly make more (or less) than this.

Do you need a real estate license to flip houses?

No, you don’t need a real estate license to flip houses. That said, a real estate license could give you access to more property deals, as well as help you network with other real estate professionals.

What is the 70% rule in house flipping?

The 70% rule says you should spend no more than 70% of a home’s after repair value (ARV) minus the costs of rehabbing. For instance, let’s say a property’s ARV is $300,000, and you estimate repair costs will total $65,000. In this case, you would take 70% of $300,000 to get $210,000, then subtract it by $65,000 to get $145,000.

Steven Porrello

Contributing Writer

Steven Porrello is a former contributor at Anytime Estimate. When he's not writing about real estate and investing, Steven spends his time surfing, reading on the beach, and traveling.

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