---
title: Pros and Cons of Fix & Flip Investments
description: While we’re most pro fix & flip here, there are certainly some reasons people wouldn’t want to get started—or at least be aware of the potential downside.
image: https://www.theinvestorsedge.com/hubfs/Guy-Analyze-Copy-300x175.jpg
---

[Skip to content](https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#main-content)

[ Close ](https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#)

- Courses 
    - House Flipping 
          - [Find Fund Flip System For Houses](https://www.theinvestorsedge.com/find-fund-flip-system)
    - Land Flipping 
          - [Find Fund Flip System For Land](https://www.theinvestorsedge.com/land-flipping)
- Software 
    - Tools & Automation 
          - [The Investor's Edge Software](https://www.theinvestorsedge.com/real-estate-investment-software/investors-edge/)
          - [Proof of Funds](https://www.theinvestorsedge.com/real-estate-investment-software/proof-of-funds)
          - [Next Property Roadmap](https://www.theinvestorsedge.com/real-estate-investment-software/next-property-roadmap)
          - [Mortgage Rate Historical Chart](https://www.theinvestorsedge.com/mortgage-rate-historical-chart)
          - [Median Sales Price Historical Chart](https://www.theinvestorsedge.com/median-sales-price-sold-historical-chart)
          - [Median Monthly Rents Chart](https://www.theinvestorsedge.com/median-monthly-rents-chart)
    - Calculators 
          - [Advanced Deal Analyzer](https://www.theinvestorsedge.com/real-estate-investing-calculators/advanced-deal-analyzer)
          - [ARV Calculator & Property Value Analysis](https://www.theinvestorsedge.com/real-estate-investing-calculators/arv-calculator)
          - [Mortgage Calculator](https://www.theinvestorsedge.com/mortgage-calculator)
          - [Early Mortgage Payoff Calculator](https://www.theinvestorsedge.com/early-mortgage-payoff-calculator)
          - [Amortization Calculator](https://www.theinvestorsedge.com/amortization-calculator)
- Funding 
    - Funding with The Investor's Edge 
          - [Funding Your Next Flip](https://www.theinvestorsedge.com/funding)
          - [Our Funding Process](https://www.theinvestorsedge.com/our-funding-process)
          - [Where We Lend](https://www.theinvestorsedge.com/where-we-lend)
          - [Why Off-Market Properties](https://www.theinvestorsedge.com/off-market-properties)
    - Financing Options 
          - [Hard Money Loans](https://www.theinvestorsedge.com/hard-money-loans)
          - [Gap Financing Ideas](https://www.theinvestorsedge.com/hard-money-loans/gap-financing)
- About Us 
    - About The Investor's Edge 
          - [About Us](https://www.theinvestorsedge.com/about-us)
          - [How We're Different](https://www.theinvestorsedge.com/about-us/how-were-different)
    - What Our Members Are Saying 
          - [Reviews and Success Stories](https://www.theinvestorsedge.com/about-us/reviews)
          - [Recent Fix & Flip Rehabs](https://www.theinvestorsedge.com/rehabs)
- Investing 101 
    - Start Here 
          - [Real Estate Investing For Beginners](https://www.theinvestorsedge.com/real-estate-investing-for-beginners)
    - Finding Properties 
          - [Our Finding Process](https://www.theinvestorsedge.com/our-finding-process)
          - [Find Motivated Sellers](https://www.theinvestorsedge.com/find-sellers)
          - [Market to Motivated Sellers](https://www.theinvestorsedge.com/market-to-motivated-property-sellers)
    - Buying Properties 
          - [Calculate After Repair Value](https://www.theinvestorsedge.com/calculate-after-repair-value)
          - [Estimate Rehab Costs](https://www.theinvestorsedge.com/estimate-rehab-costs)
          - [Calculate Profits](https://www.theinvestorsedge.com/calculate-profits)
          - [Negotiate Offers](https://www.theinvestorsedge.com/negotiate-offers)
    - Wholesale Properties 
          - [Find Cash Buyers](https://www.theinvestorsedge.com/sell-properties/find-cash-buyers)
    - Investing Strategies 
          - [Fixing & Flipping Houses](https://www.theinvestorsedge.com/fixing-and-flipping-houses)
          - [Wholesale Real Estate](https://www.theinvestorsedge.com/wholesale-real-estate)
          - [BRRR Method](https://www.theinvestorsedge.com/brrr-method)
- [Blog](https://www.theinvestorsedge.com/blog)
- [Podcast](https://www.theinvestorsedge.com/incomehacker)

[

MEMBER LOGIN: ](https://app.theinvestorsedge.com/authentication/login)

[

SEARCH

](https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#)

[

CONTACT US:

](https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#)

CALL US: [(801) 396-9772](tel:+18013969772)

[![New-InvestorsEdgeLogo-ForDark-257x100](https://www.theinvestorsedge.com/hs-fs/hubfs/A%20-%20Logos/New%20Logo/New-InvestorsEdgeLogo-ForDark-257x100.png?width=167&height=65&name=New-InvestorsEdgeLogo-ForDark-257x100.png)![New-TheInvestorsEdgeLogo-ForLight-257x100-1](https://www.theinvestorsedge.com/hs-fs/hubfs/Logos/New%20Logo/New-TheInvestorsEdgeLogo-ForLight-257x100-1.png?width=167&height=65&name=New-TheInvestorsEdgeLogo-ForLight-257x100-1.png)](https://www.theinvestorsedge.com)

- Courses 
    - House Flipping 
          - [Find Fund Flip System For Houses](https://www.theinvestorsedge.com/find-fund-flip-system)
    - Land Flipping 
          - [Find Fund Flip System For Land](https://www.theinvestorsedge.com/land-flipping)
- Software 
    - Tools & Automation 
          - [The Investor's Edge Software](https://www.theinvestorsedge.com/real-estate-investment-software/investors-edge/)
          - [Proof of Funds](https://www.theinvestorsedge.com/real-estate-investment-software/proof-of-funds)
          - [Next Property Roadmap](https://www.theinvestorsedge.com/real-estate-investment-software/next-property-roadmap)
          - [Mortgage Rate Historical Chart](https://www.theinvestorsedge.com/mortgage-rate-historical-chart)
          - [Median Sales Price Historical Chart](https://www.theinvestorsedge.com/median-sales-price-sold-historical-chart)
          - [Median Monthly Rents Chart](https://www.theinvestorsedge.com/median-monthly-rents-chart)
    - Calculators 
          - [Advanced Deal Analyzer](https://www.theinvestorsedge.com/real-estate-investing-calculators/advanced-deal-analyzer)
          - [ARV Calculator & Property Value Analysis](https://www.theinvestorsedge.com/real-estate-investing-calculators/arv-calculator)
          - [Mortgage Calculator](https://www.theinvestorsedge.com/mortgage-calculator)
          - [Early Mortgage Payoff Calculator](https://www.theinvestorsedge.com/early-mortgage-payoff-calculator)
          - [Amortization Calculator](https://www.theinvestorsedge.com/amortization-calculator)
- Funding 
    - Funding with The Investor's Edge 
          - [Funding Your Next Flip](https://www.theinvestorsedge.com/funding)
          - [Our Funding Process](https://www.theinvestorsedge.com/our-funding-process)
          - [Where We Lend](https://www.theinvestorsedge.com/where-we-lend)
          - [Why Off-Market Properties](https://www.theinvestorsedge.com/off-market-properties)
    - Financing Options 
          - [Hard Money Loans](https://www.theinvestorsedge.com/hard-money-loans)
          - [Gap Financing Ideas](https://www.theinvestorsedge.com/hard-money-loans/gap-financing)
- About Us 
    - About The Investor's Edge 
          - [About Us](https://www.theinvestorsedge.com/about-us)
          - [How We're Different](https://www.theinvestorsedge.com/about-us/how-were-different)
    - What Our Members Are Saying 
          - [Reviews and Success Stories](https://www.theinvestorsedge.com/about-us/reviews)
          - [Recent Fix & Flip Rehabs](https://www.theinvestorsedge.com/rehabs)
- Investing 101 
    - Start Here 
          - [Real Estate Investing For Beginners](https://www.theinvestorsedge.com/real-estate-investing-for-beginners)
    - Finding Properties 
          - [Our Finding Process](https://www.theinvestorsedge.com/our-finding-process)
          - [Find Motivated Sellers](https://www.theinvestorsedge.com/find-sellers)
          - [Market to Motivated Sellers](https://www.theinvestorsedge.com/market-to-motivated-property-sellers)
    - Buying Properties 
          - [Calculate After Repair Value](https://www.theinvestorsedge.com/calculate-after-repair-value)
          - [Estimate Rehab Costs](https://www.theinvestorsedge.com/estimate-rehab-costs)
          - [Calculate Profits](https://www.theinvestorsedge.com/calculate-profits)
          - [Negotiate Offers](https://www.theinvestorsedge.com/negotiate-offers)
    - Wholesale Properties 
          - [Find Cash Buyers](https://www.theinvestorsedge.com/sell-properties/find-cash-buyers)
    - Investing Strategies 
          - [Fixing & Flipping Houses](https://www.theinvestorsedge.com/fixing-and-flipping-houses)
          - [Wholesale Real Estate](https://www.theinvestorsedge.com/wholesale-real-estate)
          - [BRRR Method](https://www.theinvestorsedge.com/brrr-method)
- [Blog](https://www.theinvestorsedge.com/blog)
- [Podcast](https://www.theinvestorsedge.com/incomehacker)

<https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#>

CALL US: [(801) 396-9772](tel:+18013969772)

<https://app.theinvestorsedge.com/authentication/login>

<https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#>

<https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#>

Search Suggestions

<https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments#>

![Guy-Analyze-Copy-1024x379](https://www.theinvestorsedge.com/hs-fs/hubfs/Guy-Analyze-Copy-1024x379.jpg?width=300&name=Guy-Analyze-Copy-1024x379.jpg)

[Ryan G. Wright](https://www.theinvestorsedge.com/blog/author/ryan-g-wright)Dec 21, 2021 11:00:00 PM10 min read

# Pros and Cons of Fix & Flip Investments

[Previous ](https://www.theinvestorsedge.com/blog/pitfalls-real-estate-investment)

<https://www.theinvestorsedge.com/blog>

[Next ](https://www.theinvestorsedge.com/blog/secrets-flipping-houses)

- [Tweet](https://twitter.com/share)

While we’re most pro fix & flip here, there are certainly some reasons people wouldn’t want to get started—or at least be aware of the potential downside.

Fix & flip businesses are my favorite types of real estate investments and our client’s primary bread and butter here at Do Hard Money. If you’ve ever seen any sort of reality show that centers around some cute married couple installing beadboard walls in a home they’re going to sell, you’ve most likely seen a fix & flip. But is it really that easy, or is there a catch? What are the pros and cons of fix & flip investments?

**The biggest pros when it comes to house flipping include the high potential for profits, the ease at increasing your equity, the unlimited inventory, and the ability to improve the appeal of your town. The cons involve the volatility of the market conditions, the high level of risk, and the extended amount of time you’ll have to hold onto a property before listing it on the MLS.**

But that is such a quick run-over that there’s a lot of nuance missing for each of these points. So let’s get into this more and talk about what a fix & flip is, how much money you can make, and the positives that come along with running a house flipping business. Plus, I’ll also give you the biggest considerations you need to be aware of before jumping into your first fix & flip so that you’re able to understand what it’ll take to become successful. Let’s dive in. 

Summary

- [What is a “Fix & Flip?”](https://www.theinvestorsedge.com/pros-cons-fix-flip-investments)
- [The Pros of Fix & Flips](https://www.theinvestorsedge.com/pros-cons-fix-flip-investments)
- [How Much Can I Make Flipping Houses?](https://www.theinvestorsedge.com/pros-cons-fix-flip-investments)
- [The Things You Need to Consider Before Getting into Fix & Flips](https://www.theinvestorsedge.com/pros-cons-fix-flip-investments)
- [How Can I Find Properties to Flip?](https://www.theinvestorsedge.com/pros-cons-fix-flip-investments)
- [Final Thoughts](https://www.theinvestorsedge.com/pros-cons-fix-flip-investments)

## What is a “Fix & Flip?”

 

 

First, let’s clearly define what I mean by “fix & flip” as a real estate venture since there are multiple ways you can build a real estate investment business that doesn’t necessarily involve flipping.

Fix & flip is the term used for real estate investors who buy a property for less than it’s worth, spend money and time to renovate it, and then sell it for an increased price due to the rise in value (“flipping it”). If you’ve seen HGTV, then you’ve probably seen a fix & flip business. 

Fix & flips are not rental properties and are typically residential properties, though it’s possible to flip commercial spaces; however, you’ve got to know the different expectations exclusive to commercial real estate. 

Essentially to successfully fix and then flip a property, you’ve got to “buy low, sell high.”

### What Are the Other Types of Real Estate Investments?

If you’re curious what the other ways you can become a real estate investor are, they include:

- **Wholesaling – **Getting a property under contract and selling the contract to another investor.
- **Renting Properties – **Either investing in single-family or multi-family properties for the purpose of keeping ownership while renting them to tenants. I’ve been renting properties since I was 20 and have a [great system for keeping tenants 5+ years](https://www.theinvestorsedge.com/how-to-attract-quality-renters-for-your-investment-property) which keeps my revenue stable and lets me grow my business quickly.
- **Commercial Real Estate Investing –** Both flipping and renting, but I consider commercial property investing[ its own category ](https://www.theinvestorsedge.com/how-profitable-is-commercial-real-estate)solely because of the expectations you’ll need to have in commercial real estate and how different it is from residential.

## The Pros of Fix & Flips

 

 

Okay, now that that’s out of the way, let’s talk about the good side of having a fix & flip business. Granted, your mileage may vary, and none of these are guaranteed, but overall it’s safe to expect that you’ll have these perks:

- **The High Potential for Profit – **Needless to say, the possibilities for profit with fixing and flipping homes are endless, and that’s precisely what attracts so many to this type of investment. Rehabbing and reselling homes really does open the doors to financial freedom, providing you with a cash flow that is much larger than the average 9-5 office job can yield. 
- **Immediate Equity –**  When you purchase a fixer-upper, you build immediate equity, also known as “forced appreciation.” Both your equity and your investment can skyrocket in value because:  
    - You will be investing your money in an item that historically appreciates in value.
    - The more the property appreciates due to both the nature of real estate and the amount invested for renovations done, the faster your equity grows. 
- **Less Competition –** Depending on where you go to find properties, there is significantly less competition for fix & flip homes than for “retail” move-in-ready homes on the market. While the majority of buyers want their rehab costs to stop at the cost of a few gallons of paint, you can slip in and purchase that neighborhood eyesore for a steal. 
- **Essentially Endless Opportunity –** The beauty of investing in the real estate market is that inventory is constantly being replenished with new opportunities. If you feel like you’ve missed “the” investment opportunity of the year, chances are there’s an even better deal right behind it. 
- **There’s a Feel-Good Factor About It – **This might be more of a “soft” positive for house flipping, but it’s worth mentioning. While it’s true that you’re earning an income selling homes for an increased profit, [that doesn’t mean it’s unethical to be a house flipper.](https://www.theinvestorsedge.com/is-house-flipping-ethical) In fact, I’d argue that flipping properties is one of the better local businesses to have since you’re contributing to the improvement of your town and restoring once-loved properties by giving them a new life.

## How Much Can I Make Flipping Houses?

 

 

One of the questions I get most often is, “how much can I make doing fix & flips?” Frankly, it’s a tricky question to answer (though I get why people want to know) because there are so many variables at play. You’ve got to [consider your costs](https://www.theinvestorsedge.com/the-pros-guide-how-to-calculate-cost-on-a-fix-flip), timelines, overhead, and all the other fun things that come along with being an entrepreneur.

That said, there is some data out there for what you can expect to earn in terms of your salary once you’re an established flipper. Here’s what we’ve found to be the [average income of house flippers](https://www.theinvestorsedge.com/what-is-the-average-salary-for-a-house-flipper) in the United States:

| State | Average Reported Yearly Salary (2020) |
| --- | --- |
| Alabama | $108,490 |
| Alaska | $123,581 |
| Arizona | $115,155 |
| Arkansas | $109,217 |
| California | $121,843 |
| Colorado | $116,437 |
| Connecticut | $124,755 |
| Delaware | $116,593 |
| Florida | $104,704 |
| Georgia | $111,089 |
| Hawaii | $129,328 |
| Idaho | $113,912 |
| Illinois | $108,623 |
| Indiana | $114,417 |
| Iowa | $112,197 |
| Kansas | $114,658 |
| Kentucky | $118,860 |
| Louisiana | $113,364 |
| Maine | $113,827 |
| Maryland | $124,794 |
| Massachusetts | $134,657 |
| Michigan | $109,298 |
| Minnesota | $116,892 |
| Mississippi | $107,392 |
| Missouri | $107,140 |
| Montana | $116,352 |
| Nebraska | $122,912 |
| Nevada | $122,611 |
| New Hampshire | $131,717 |
| New Jersey | $118,323 |
| New Mexico | $109,576 |
| New York | $135,942 |
| North Carolina | $99,700 |
| North Dakota | $122,147 |
| Ohio | $115,671 |
| Oklahoma | $114,236 |
| Oregon | $116,609 |
| Pennsylvania | $117,608 |
| Rhode Island | $123,741 |
| South Carolina | $116,999 |
| South Dakota | $118,580 |
| Tennessee | $116,511 |
| Texas | $109,814 |
| Utah | $114,607 |
| Vermont | $123,068 |
| Virginia | $121,301 |
| Washington | $133,717 |
| West Virginia | $118,179 |
| Wisconsin | $115,395 |
| Wyoming | $122,041 |

### Wow, Can I Really Make Six Figures Doing Fix & Flips?

Now, before you jump into this with dollar signs in your eyes, let me again emphasize that these are the incomes of experienced flippers. Your first few years will be a build-up to these numbers, so don’t fret if you’re not breaking six figures your first year. 

I find the best way to hit goals like six figures is to understand what you’re going to need in terms of cold, hard numbers. Typically, our Do Hard Money clients report they make an average of $39,714 per deal. So if you’re a house flipper working in Virginia, you’ll need to buy and sell 3.05 houses every year to earn an income of $121,301.

I don’t tell you this to discourage you; far from it! Clearly, there’s good money to be made in house flipping, but it could take a few houses before that happens, so don’t get frustrated if your first few houses earn a relative trickle of money instead of a flood. 

## The Things You Need to Consider Before Getting into Fix & Flips

 

 

You’re probably waiting for the catch, right? Fix & flips can’t be all sunshine and puppies; what are the downsides you need to prepare yourself for?

- **It’s Not Quick – **Don’t quit that day job just yet. Despite what those reality shows tell you, house flipping is a long-term business, and you’ll be lucky to successfully flip more than three homes a year. A typical fix & flip takes [six months to complete ](https://www.theinvestorsedge.com/how-long-does-it-take-to-flip-a-house)in the best of market conditions. 

- **It’s Not Cheap – **Even if you’re able to find an investment property for a song, the amount of money you’ll need to invest for rehab, marketing, and your business overhead can take your breath away if you’re not prepared. You might end up needing an infusion of emergency cash quickly ([which is where we can help](https://www.theinvestorsedge.com/funding)) or have to make some tough choices to keep the lights on.
  
   
- **The Market Fluctuates Constantly –** Over the past few years, we’ve been in a seller’s market where the demand is higher than the supply. However, this will eventually shift back to a buyer’s market (more supply than demand) because real estate is cyclical. For the most part, you should be able to see it coming if you’re paying attention to market trends, but there are still times where the rug will get pulled out from under you.

Consider a town like Rochester, NY, which was home to both Xerox and Kodak and had a healthy housing market…until it didn’t. The market tanked pretty quickly as the companies began to move operations overseas to cut costs and stay competitive in an increasingly digital world. Imagine you were trying to flip a home right after those massive layoffs; not fun! Sadly, the city has been slow to recover even to this day. 

There’s also another market you’ll be accountable to: the materials market. In the summer of 2021, you might remember the news stories about the ridiculous lumber prices, which skyrocketed 500% in some areas. What if you were installing a new deck on your investment property then? You’d need to scramble quickly just to break even or cut costs somewhere else.

- **It’s Incredibly Risky –** There’s no guarantee your investment property will sell for a profit…or sell at all. Luckily, since you own the home, you’ll have some options for getting your investment back, like renting it out, but then your timeline before turning a profit stretches even further.
  
   
- **Flipping Has a Steep Learning Curve – **There are a lot of moving parts in a house flip that you’ll need to stay on top of throughout the lifecycle of the flip. Being an entrepreneur in the real estate industry means you’ll need to know about:

- Macro and Micro Economics and how they relate to local and nationwide economies. 

- - Market Forecasting
    - Probability and Statistics
    - Business Law
    - Real Estate Law
    - Selling
    - Basic Carpentry
    - Plumbing
    - Electrical
    - Local Demographics and what they’ll be looking for in a desirable property. 
    - Entrepreneurship

Wait, don’t run away screaming yet! You don’t need to have a graduate-level education in all of this, but even scratching the surface of an education in each of these areas will help you immensely. 

## How Can I Find Properties to Flip?

 

 

We’ve got so many articles and resources that can help you find cheap houses that are off-market and ready for the taking. Check out how our clients use the [Next Property Roadmap](https://www.theinvestorsedge.com/real-estate-investment-software/next-property-roadmap) to consistently source deals without getting dragged into a bidding war with other investors or potential homeowners. 

## Final Thoughts

In my opinion, there are way more pros than cons when it comes to running a fix & flip real estate investment business. That said, it’s still critical you go into house flipping with your eyes wide open and know the risks involved. 

Did I miss a pro or con you think our readers need to know? Leave a comment and tell me!

## RELATED ARTICLES

USEFUL LINKS:

---

- [FAQs](https://www.theinvestorsedge.com/faq)
- [Areas Served](https://www.theinvestorsedge.com/areas-served)
- [Terms of Use](https://www.theinvestorsedge.com/terms-of-use)
- [Privacy Policy](https://www.theinvestorsedge.com/terms-of-use/privacy-policy)
- [AI Info](https://www.theinvestorsedge.com/ai-info-page)

OTHER RESOURCES

---

- [Referral Program](https://www.theinvestorsedge.com/referrals)
- [Become A Hard Money Lender](https://www.theinvestorsedge.com/become-a-hard-money-lender)
- [Careers](https://www.theinvestorsedge.com/careers)
- [Member Login](https://app.theinvestorsedge.com/authentication/login)
- [Contact Us](https://www.theinvestorsedge.com/contact)

[![New-InvestorsEdgeLogo-ForDark-257x100](https://23711988.fs1.hubspotusercontent-na1.net/hub/23711988/hubfs/A%20-%20Logos/New%20Logo/New-InvestorsEdgeLogo-ForDark-257x100.png?width=150&name=New-InvestorsEdgeLogo-ForDark-257x100.png)](https://www.theinvestorsedge.com)

Keep the conversation going. Connect with us on Social Media:

<https://linkedin.com/company/theinvestorsedge><https://www.youtube.com/@theinvestorsedge><https://www.instagram.com/theinvestorsedgerei/><https://www.facebook.com/theinvestorsedgerei><https://twitter.com/InvestorsEdge_>

Copyright © 2025 TheInvestorsEdge.com All Rights Reserved

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "abstract" : "While we’re most pro fix &amp; flip here, there are certainly some reasons people wouldn’t want to get started—or at least be aware of the potential downside.",
  "author" : {
    "@type" : "Person",
    "name" : "Ryan G. Wright"
  },
  "dateModified" : "",
  "datePublished" : "",
  "headline" : "Pros and Cons of Fix &amp; Flip Investments",
  "image" : "https://23711988.fs1.hubspotusercontent-na1.net/hubfs/23711988/Guy-Analyze-Copy-300x175.jpg",
  "inLanguage" : "en",
  "keywords" : "[]",
  "mainEntityOfPage" : {
    "@type" : "WebPage"
  },
  "name" : "Pros and Cons of Fix &amp; Flip Investments",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://23711988.fs1.hubspotusercontent-na1.net/hubfs/23711988/Logos/New%20Logo/New-TheInvestorsEdgeLogo-ForLight-257x100-1.png"
    },
    "name" : "The Investor's Edge"
  },
  "text" : "While we’re most pro fix &amp; flip here, there are certainly some reasons people wouldn’t want to get started—or at least be aware of the potential downside. Fix &amp; flip businesses are my favorite types of real estate investments and our client’s primary bread and butter here at Do Hard Money. If you’ve ever seen any sort of reality show that centers around some cute married couple installing beadboard walls in a home they’re going to sell, you’ve most likely seen a fix &amp; flip. But is it really that easy, or is there a catch? What are the pros and cons of fix &amp; flip investments? The biggest pros when it comes to house flipping include the high potential for profits, the ease at increasing your equity, the unlimited inventory, and the ability to improve the appeal of your town. The cons involve the volatility of the market conditions, the high level of risk, and the extended amount of time you’ll have to hold onto a property before listing it on the MLS. But that is such a quick run-over that there’s a lot of nuance missing for each of these points. So let’s get into this more and talk about what a fix &amp; flip is, how much money you can make, and the positives that come along with running a house flipping business. Plus, I’ll also give you the biggest considerations you need to be aware of before jumping into your first fix &amp; flip so that you’re able to understand what it’ll take to become successful. Let’s dive in. Summary What is a “Fix &amp; Flip?” The Pros of Fix &amp; Flips How Much Can I Make Flipping Houses? The Things You Need to Consider Before Getting into Fix &amp; Flips How Can I Find Properties to Flip? Final Thoughts What is a “Fix &amp; Flip?” First, let’s clearly define what I mean by “fix &amp; flip” as a real estate venture since there are multiple ways you can build a real estate investment business that doesn’t necessarily involve flipping. Fix &amp; flip is the term used for real estate investors who buy a property for less than it’s worth, spend money and time to renovate it, and then sell it for an increased price due to the rise in value (“flipping it”). If you’ve seen HGTV, then you’ve probably seen a fix &amp; flip business. Fix &amp; flips are not rental properties and are typically residential properties, though it’s possible to flip commercial spaces; however, you’ve got to know the different expectations exclusive to commercial real estate. Essentially to successfully fix and then flip a property, you’ve got to “buy low, sell high.” What Are the Other Types of Real Estate Investments? If you’re curious what the other ways you can become a real estate investor are, they include: Wholesaling – Getting a property under contract and selling the contract to another investor. Renting Properties – Either investing in single-family or multi-family properties for the purpose of keeping ownership while renting them to tenants. I’ve been renting properties since I was 20 and have a great system for keeping tenants 5+ years which keeps my revenue stable and lets me grow my business quickly. Commercial Real Estate Investing – Both flipping and renting, but I consider commercial property investing its own category solely because of the expectations you’ll need to have in commercial real estate and how different it is from residential. The Pros of Fix &amp; Flips Okay, now that that’s out of the way, let’s talk about the good side of having a fix &amp; flip business. Granted, your mileage may vary, and none of these are guaranteed, but overall it’s safe to expect that you’ll have these perks: The High Potential for Profit – Needless to say, the possibilities for profit with fixing and flipping homes are endless, and that’s precisely what attracts so many to this type of investment. Rehabbing and reselling homes really does open the doors to financial freedom, providing you with a cash flow that is much larger than the average 9-5 office job can yield. Immediate Equity – When you purchase a fixer-upper, you build immediate equity, also known as “forced appreciation.” Both your equity and your investment can skyrocket in value because: You will be investing your money in an item that historically appreciates in value. The more the property appreciates due to both the nature of real estate and the amount invested for renovations done, the faster your equity grows. Less Competition – Depending on where you go to find properties, there is significantly less competition for fix &amp; flip homes than for “retail” move-in-ready homes on the market. While the majority of buyers want their rehab costs to stop at the cost of a few gallons of paint, you can slip in and purchase that neighborhood eyesore for a steal. Essentially Endless Opportunity – The beauty of investing in the real estate market is that inventory is constantly being replenished with new opportunities. If you feel like you’ve missed “the” investment opportunity of the year, chances are there’s an even better deal right behind it. There’s a Feel-Good Factor About It – This might be more of a “soft” positive for house flipping, but it’s worth mentioning. While it’s true that you’re earning an income selling homes for an increased profit, that doesn’t mean it’s unethical to be a house flipper. In fact, I’d argue that flipping properties is one of the better local businesses to have since you’re contributing to the improvement of your town and restoring once-loved properties by giving them a new life. How Much Can I Make Flipping Houses? One of the questions I get most often is, “how much can I make doing fix &amp; flips?” Frankly, it’s a tricky question to answer (though I get why people want to know) because there are so many variables at play. You’ve got to consider your costs, timelines, overhead, and all the other fun things that come along with being an entrepreneur. That said, there is some data out there for what you can expect to earn in terms of your salary once you’re an established flipper. Here’s what we’ve found to be the average income of house flippers in the United States: State Average Reported Yearly Salary (2020) Alabama $108,490 Alaska $123,581 Arizona $115,155 Arkansas $109,217 California $121,843 Colorado $116,437 Connecticut $124,755 Delaware $116,593 Florida $104,704 Georgia $111,089 Hawaii $129,328 Idaho $113,912 Illinois $108,623 Indiana $114,417 Iowa $112,197 Kansas $114,658 Kentucky $118,860 Louisiana $113,364 Maine $113,827 Maryland $124,794 Massachusetts $134,657 Michigan $109,298 Minnesota $116,892 Mississippi $107,392 Missouri $107,140 Montana $116,352 Nebraska $122,912 Nevada $122,611 New Hampshire $131,717 New Jersey $118,323 New Mexico $109,576 New York $135,942 North Carolina $99,700 North Dakota $122,147 Ohio $115,671 Oklahoma $114,236 Oregon $116,609 Pennsylvania $117,608 Rhode Island $123,741 South Carolina $116,999 South Dakota $118,580 Tennessee $116,511 Texas $109,814 Utah $114,607 Vermont $123,068 Virginia $121,301 Washington $133,717 West Virginia $118,179 Wisconsin $115,395 Wyoming $122,041 Wow, Can I Really Make Six Figures Doing Fix &amp; Flips? Now, before you jump into this with dollar signs in your eyes, let me again emphasize that these are the incomes of experienced flippers. Your first few years will be a build-up to these numbers, so don’t fret if you’re not breaking six figures your first year. I find the best way to hit goals like six figures is to understand what you’re going to need in terms of cold, hard numbers. Typically, our Do Hard Money clients report they make an average of $39,714 per deal. So if you’re a house flipper working in Virginia, you’ll need to buy and sell 3.05 houses every year to earn an income of $121,301. I don’t tell you this to discourage you; far from it! Clearly, there’s good money to be made in house flipping, but it could take a few houses before that happens, so don’t get frustrated if your first few houses earn a relative trickle of money instead of a flood. The Things You Need to Consider Before Getting into Fix &amp; Flips You’re probably waiting for the catch, right? Fix &amp; flips can’t be all sunshine and puppies; what are the downsides you need to prepare yourself for? It’s Not Quick – Don’t quit that day job just yet. Despite what those reality shows tell you, house flipping is a long-term business, and you’ll be lucky to successfully flip more than three homes a year. A typical fix &amp; flip takes six months to complete in the best of market conditions. It’s Not Cheap – Even if you’re able to find an investment property for a song, the amount of money you’ll need to invest for rehab, marketing, and your business overhead can take your breath away if you’re not prepared. You might end up needing an infusion of emergency cash quickly (which is where we can help) or have to make some tough choices to keep the lights on. The Market Fluctuates Constantly – Over the past few years, we’ve been in a seller’s market where the demand is higher than the supply. However, this will eventually shift back to a buyer’s market (more supply than demand) because real estate is cyclical. For the most part, you should be able to see it coming if you’re paying attention to market trends, but there are still times where the rug will get pulled out from under you. Consider a town like Rochester, NY, which was home to both Xerox and Kodak and had a healthy housing market…until it didn’t. The market tanked pretty quickly as the companies began to move operations overseas to cut costs and stay competitive in an increasingly digital world. Imagine you were trying to flip a home right after those massive layoffs; not fun! Sadly, the city has been slow to recover even to this day. There’s also another market you’ll be accountable to: the materials market. In the summer of 2021, you might remember the news stories about the ridiculous lumber prices, which skyrocketed 500% in some areas. What if you were installing a new deck on your investment property then? You’d need to scramble quickly just to break even or cut costs somewhere else. It’s Incredibly Risky – There’s no guarantee your investment property will sell for a profit…or sell at all. Luckily, since you own the home, you’ll have some options for getting your investment back, like renting it out, but then your timeline before turning a profit stretches even further. Flipping Has a Steep Learning Curve – There are a lot of moving parts in a house flip that you’ll need to stay on top of throughout the lifecycle of the flip. Being an entrepreneur in the real estate industry means you’ll need to know about: Macro and Micro Economics and how they relate to local and nationwide economies. Market Forecasting Probability and Statistics Business Law Real Estate Law Selling Basic Carpentry Plumbing Electrical Local Demographics and what they’ll be looking for in a desirable property. Entrepreneurship Wait, don’t run away screaming yet! You don’t need to have a graduate-level education in all of this, but even scratching the surface of an education in each of these areas will help you immensely. How Can I Find Properties to Flip? We’ve got so many articles and resources that can help you find cheap houses that are off-market and ready for the taking. Check out how our clients use the Next Property Roadmap to consistently source deals without getting dragged into a bidding war with other investors or potential homeowners. Final Thoughts In my opinion, there are way more pros than cons when it comes to running a fix &amp; flip real estate investment business. That said, it’s still critical you go into house flipping with your eyes wide open and know the risks involved. Did I miss a pro or con you think our readers need to know? Leave a comment and tell me!",
  "url" : "https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments",
  "wordCount" : "4963"
}
```

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Ryan G. Wright",
    "url" : "https://www.theinvestorsedge.com/blog/author/ryan-g-wright"
  },
  "dateModified" : "2026-05-22T02:32:40.708Z",
  "datePublished" : "2021-12-22T04:00:00.000Z",
  "headline" : "Pros and Cons of Fix & Flip Investments",
  "image" : [ "https://www.theinvestorsedge.com/hubfs/Guy-Analyze-Copy-300x175.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.theinvestorsedge.com/blog/pros-cons-fix-flip-investments",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://www.theinvestorsedge.com/hubfs/Logos/New%20Logo/New-TheInvestorsEdgeLogo-ForLight-257x100-1.png"
    },
    "name" : "The Investor's Edge"
  }
}
```

```json
{
  "@context" : "https://schema.org",
  "@id" : "https://www.theinvestorsedge.com/#organization",
  "@type" : "Organization",
  "address" : {
    "@type" : "PostalAddress",
    "addressCountry" : "US",
    "addressLocality" : "West Jordan",
    "addressRegion" : "UT",
    "postalCode" : "84088",
    "streetAddress" : "8846 S Redwood Road C221"
  },
  "alternateName" : [ "TheInvestorsEdge.com", "DoHardMoney.com", "Do Hard Money", "DHM Industries" ],
  "areaServed" : {
    "@type" : "Country",
    "name" : "United States"
  },
  "contactPoint" : [ {
    "@type" : "ContactPoint",
    "areaServed" : "US",
    "availableLanguage" : "English",
    "contactType" : "customer service",
    "email" : "questions@theinvestorsedge.com",
    "telephone" : "+1-801-692-7678"
  } ],
  "description" : "The Investor's Edge is a real estate investing company that combines proprietary deal-finding software, education, and equity-based funding into one Find-Fund-Flip system. It funds up to 100% of qualifying deals and helps both first-time and experienced investors flip houses and land in 45 U.S. states. Formerly DoHardMoney.com; rebranded in 2023.",
  "founder" : {
    "@type" : "Person",
    "jobTitle" : "Founder & CEO",
    "name" : "Ryan G. Wright"
  },
  "foundingDate" : "2006",
  "knowsAbout" : [ "Real estate investing", "Fix and flip", "Hard money loans", "Land flipping", "BRRR method", "Wholesaling houses", "Off-market real estate deals" ],
  "legalName" : "DHM Industries, Inc.",
  "logo" : "https://www.theinvestorsedge.com/hubfs/Logos/New%20Logo/TheInvestorsEdge-NewLogo-Social-300x175.jpg",
  "mainEntityOfPage" : "https://www.theinvestorsedge.com/ai-info-page/",
  "name" : "The Investor's Edge",
  "sameAs" : [ "https://www.linkedin.com/company/theinvestorsedge", "https://www.youtube.com/@theinvestorsedge", "https://www.instagram.com/theinvestorsedgerei/", "https://www.facebook.com/theinvestorsedgerei", "https://twitter.com/InvestorsEdge_", "https://www.bbb.org/us/ut/west-jordan/profile/real-estate-investing/theinvestorsedgecom-1166-22167211" ],
  "slogan" : "Find, Fund, and Flip Real Estate",
  "url" : "https://www.theinvestorsedge.com"
}
```

```json
{
  "@context" : "https://schema.org",
  "@type" : "FAQPage",
  "mainEntity" : [ {
    "@type" : "Question",
    "acceptedAnswer" : {
      "@type" : "Answer",
      "text" : "Yes. In 2023, DoHardMoney.com was rebranded to TheInvestorsEdge.com. The company had outgrown hard money lending alone, since it now offers educational courses, proprietary deal-finding software, and expert support in addition to funding."
    },
    "name" : "Is DoHardMoney.com the same as TheInvestorsEdge.com?"
  }, {
    "@type" : "Question",
    "acceptedAnswer" : {
      "@type" : "Answer",
      "text" : "No. The education, software, funding, and systems are built to walk a member through their first flip with no prior experience."
    },
    "name" : "Do I need experience in real estate investing to work with The Investor's Edge?"
  }, {
    "@type" : "Question",
    "acceptedAnswer" : {
      "@type" : "Answer",
      "text" : "The Investor's Edge recommends having around $10,000 or more for flexibility in closing deals. Deals with substantial equity can qualify for up to 100% funding, meaning qualifying deals can close with $0 in closing costs. The Find-Fund-Flip system also teaches additional ways to close with less than $8,000 of the member's own money."
    },
    "name" : "How much money do I need to get started?"
  }, {
    "@type" : "Question",
    "acceptedAnswer" : {
      "@type" : "Answer",
      "text" : "Traditional lenders evaluate the borrower's credit, income, and debt. The Investor's Edge evaluates the deal itself, lends against After Repair Value (ARV), funds faster, and works with rundown properties that conventional loans won't touch. Funding is equity-based and structured as a joint venture."
    },
    "name" : "How is The Investor's Edge funding different from a bank loan?"
  }, {
    "@type" : "Question",
    "acceptedAnswer" : {
      "@type" : "Answer",
      "text" : "The Investor's Edge serves real estate investors in 45 of 50 U.S. states, with custom funding terms by region. Membership is not currently offered in California, Nevada, Utah, Alaska, or Hawaii due to legal constraints."
    },
    "name" : "What areas does The Investor's Edge serve?"
  } ]
}
```