Higher rates changed house flipping, here is what still works

House flipping is no longer as simple as buying a fixer-upper and expecting to turn a profit. I’ve bought, renovated and invested in properties in Las Vegas and across the country, and the biggest difference today is there’s much less room for error. Homes cost more, construction costs more, borrowing costs more and buyers have more options. Good deals are still out there; you just have to know what you’re looking for, and you have to buy correctly. The buy is the most important part If there’s one thing I want a first-time flipper to understand, it’s that you make a lot of your money when you buy the property, not when you sell it. You need enough space between what you pay for the house and what you realistically expect to sell it for after renovations. That difference has to cover renovations, financing, carrying costs and unexpected expenses while still leaving room for profit. If you believe a renovated home could sell for around $500,000, for example, you may need to buy in the $350,000 to $375,000 range depending on the property and work required. That margin matters even more today because buyers have more inventory to choose from and homes may take longer to sell. Don’t fa...