How Much Can You Make Flipping Houses In 2024? Average Profits, Salaries, & Trends

With the evolving real estate market, many aspiring investors wonder: "How much can you make flipping houses?"

Real Estate Skills aims to unravel the complexities of house flipping, offering insights into how much you can realistically expect to earn and guiding you through the essential steps to enhance your profitability in this dynamic market:

• How Much Do House Flippers Make A Year?

• Will House Flipping Be Profitable In 2024?

• Top 10 Cities Where House Flippers Make The Most Money

• 5 Highest Salary House Flipping Jobs In The U.S.

• How To Estimate Your Flipping Houses Salary

• How To Maximize Profits In House Flipping

• Frequently Asked Questions (FAQ)

• Final Thoughts On House Flipping Salaries

As we delve deeper into the world of house flipping in 2024, our focus is not just on the potential earnings but also on the strategies that can maximize these profits.

Whether you are a seasoned investor or a newcomer to the real estate flipping market, understanding the nuances of this venture is key to success.

How Much Can You Make Flipping Houses?

As of January 12, 2024, data from ZipRecruiter suggests that the average annual income for house flippers in the United States is approximately $86,796. This figure translates to about $41.73 per hour, or in broader terms, $1,669 weekly and $7,233 monthly.

It’s important to recognize the variability in earnings within this field. According to recent statistics, annual salaries for real estate flippers can range significantly.

On the higher end, top earners (in the 90th percentile) who consider flipping homes as their full-time job are making as much as $119,000 annually.

Conversely, at the lower end of the spectrum, some flippers may earn as little as $36,000 per year.

The majority of salaries are observed to fall between $64,500 (25th percentile) and $100,000 (75th percentile).

This relatively narrow pay range of about $35,500 indicates that irrespective of geographical location, opportunities for substantial pay increases or career advancement can be limited, even for those with considerable experience in the field.

Regionally, the job market for flipping homes also shows varied levels of activity. For instance, in areas like Carlsbad, CA, and across the state of California, the demand for real estate flippers is currently moderate, with few companies actively hiring.

This mirrors the national trend, where the average annual salary for real estate flipping aligns closely with the overall U.S. average of $86,796. California, specifically, ranks 32nd out of 50 states in the nation for house-flipping salaries.

These figures highlight a key aspect of house flipping: while it offers the potential for significant financial returns, it also demands careful market analysis, strategic planning, and an understanding of the real estate landscape.

Success in this field is not just about buying and selling properties; it's about making informed decisions that maximize return on investment while navigating the inherent risks and fluctuations of the real estate market.

Read Also:  How To Flip Houses With No Money: 10 Proven Methods

Will House Flipping Be Profitable in 2024? Real Estate Investing Data & Forecasts

In the ever-evolving real estate market, a key question for investors in 2024 is the profitability of house flipping. Recent data from ATTOM Data Solutions, a leading real estate data curator, provides insights into this dynamic market.

In the first quarter of 2023, approximately 72,960 single-family homes and condos were flipped in the United States, accounting for 9% of all home sales.

This figure, while slightly down from the previous year, marked a significant increase from the end of 2022, hitting near-record levels. However, profitability metrics paint a mixed picture.

While raw profits and investment property returns saw a slight uptick early in the year, they remained close to the decade's low points, reflecting the ongoing challenges home flippers face.

The modest improvement in profit margins, which rose to 22%, offers a glimmer of hope after a trend of declining returns. This shift could signal a potential stabilization or even a rebound in the house-flipping market.

What Is The Typical Profit For A House Flip?

The typical gross profit on flips was $56,000, a slight increase from the previous quarter but still significantly lower than the peak figures of previous years.

This profit translated to a 22.5% return on investment, an improvement from the end of 2022 but still below the lofty heights of mid-2020.

One positive trend is the slight increase in median resale prices of flipped homes, which outpaced the rise in median purchase prices.

In the first quarter of 2023, the median resale price was $305,000, up 1.7% from the end of 2022. This improvement in resale prices is a key factor in the recent uptick in profits and margins.

However, the broader U.S. housing market's dynamics add a layer of complexity. Despite the overall market experiencing a slowdown and a decline in home values, flipping profits began to reverse early in 2023.

This counterintuitive trend suggests that the house-flipping market may operate under different dynamics compared to the broader housing market.

House Flipping Rates On The Rise In Most Of The U.S.

Geographically, house flipping rates increased in the majority of the nation, with significant activity in cities like Macon, GA; Atlanta, GA; and Jacksonville, FL.

On the flip side, the lowest flipping rates were observed in cities like Indianapolis, IN, and Wichita, KS.

In terms of profitability, investment property returns on flips varied widely across different metro areas. The highest returns were seen in Scranton, PA; Pittsburgh, PA; and Flint, MI, with Scranton leading at a remarkable 121.9% return.

Conversely, metro areas like Austin, TX, and Phoenix, AZ experienced losses, highlighting the regional disparities in flipping profitability.

While the house flipping market in 2024 shows signs of potential recovery, it remains a nuanced and regionally diverse landscape.

Real estate investors should approach flipping properties with careful market analysis and strategic planning to navigate this complex and potentially profitable field.

Read Also:  Is Flipping Houses Worth It? Property Flipping Pros & Cons Explained

Top 10 Cities Where House Flippers Make The Most Money

While the national average annual salary for a real estate flipping job is around $86,796, some cities offer substantially higher earning potential.

Let's explore the top 10 cities where flipping properties can maximize their earnings, significantly surpassing the national average:

1. Great Neck Gardens, NY: Leading the list, Great Neck Gardens offers an impressive annual salary of $145,300. This figure is a remarkable 67.4% above the national average, translating to a monthly pay of $12,108, a weekly pay of $2,794, and an hourly wage of $69.86.

2. Roslyn Estates, NY: In close pursuit, Roslyn Estates offers an annual salary of $139,344. This is 60.5% above the national average, with a monthly pay of $11,612, weekly pay of $2,679, and an hourly wage of $66.99.

3. Kensington, NY: With an annual salary of $136,705, which is 57.5% above the national average, Kensington provides an attractive opportunity for real estate flippers. The monthly pay here is $11,392, with a weekly pay of $2,628 and an hourly wage of $65.72.

4. Harbor Isle, NY: This city offers an annual salary of $130,312, 50.1% above the national average. House flippers can expect a monthly pay of $10,859, weekly pay of $2,506, and an hourly wage of $62.65.

5. San Francisco, CA: Known for its vibrant real estate market, San Francisco offers an annual salary of $107,231, which is 23.5% above the national average. The monthly pay here is $8,935, with a weekly pay of $2,062 and an hourly wage of $51.55.

6. San Jose, CA: In San Jose, the annual salary for house flippers stands at $103,686, 19.4% above the national average. This equates to a monthly pay of $8,640, weekly pay of $1,993, and an hourly wage of $49.85.

7. Oakland, CA: Offering an annual salary of $101,464, Oakland exceeds the national average by 16.9%. Flippers here can earn a monthly pay of $8,455, weekly pay of $1,951, and an hourly wage of $48.78.

8. Hayward, CA: With an annual salary of $101,291, Hayward offers a monthly pay of $8,440, weekly pay of $1,947, and an hourly wage of $48.70, standing 16.7% above the national average.

9. Ashland, CA: Almost mirroring Hayward, Ashland provides an annual salary of $101,281, which is 16.7% above the national average. The monthly pay is $8,440, with a weekly pay of $1,947 and an hourly wage of $48.69.

10. Vallejo, CA: Rounding out the top ten, Vallejo offers an annual salary of $101,185. This is 16.5% above the national average, translating to a monthly pay of $8,432, weekly pay of $1,945, and an hourly wage of $48.65.

These top ten cities not only surpass the national average in terms of annual salaries for house flipping but also demonstrate a significant variance in potential wages, with a 35% difference between the highest (Great Neck Gardens, NY) and the lowest (Vallejo, CA) on the list.

This variance suggests that house flippers have substantial opportunities for economic advancement by strategically choosing their location.

However, it is also crucial to factor in the cost of living in these cities, as it can impact the overall profitability of real estate flipping ventures.

Read Also:  How To Buy A Fixer-Upper House With No Money: 10 Best Options

5 Highest Salary House Flipping Jobs In The U.S.

Real estate flipping is not just limited to buying and selling properties. It encompasses a variety of roles that contribute significantly to this sector.

While the typical annual salary for a real estate flipper in the U.S. stands at $86,796, several related positions offer even higher compensation.

Here are the top five best-paying jobs in house flipping and how much they make on average:

1. Commercial Real Estate Developer: Topping the list, Commercial Real Estate Developers are responsible for overseeing the development of commercial properties. Their role involves everything from acquiring land to planning and constructing buildings. With an annual salary of $196,249, monthly pay of $16,354, weekly pay of $3,774, and an hourly wage of $94.35, it's a highly lucrative position that demands extensive knowledge of the real estate market and development process.

2. Sap Real Estate Management: Specialists in this field use SAP software solutions to manage real estate assets effectively. They play a crucial role in optimizing the performance and value of a property portfolio. With an annual salary of $148,509, these professionals earn a monthly pay of $12,375, weekly pay of $2,855, and an hourly wage of $71.40.

3. Real Estate Architect: Architects in the real estate sector focus on designing buildings and structures that are both aesthetically pleasing and functional. This role is critical in determining the value and appeal of properties. Real Estate Architects earn an annual salary of $128,756, which breaks down to a monthly pay of $10,729, a weekly pay of $2,476, and an hourly wage of $61.90.

4. Real Estate Sustainability: This role involves ensuring that real estate projects adhere to sustainable practices and environmental standards. Given the growing emphasis on sustainability in real estate, these experts are in high demand. They earn an annual salary of $122,624, monthly pay of $10,218, weekly pay of $2,358, and an hourly wage of $58.95.

5. Director of Global Real Estate: These professionals manage a company’s real estate assets on a global scale, which includes strategic planning, acquisition, and maintenance of properties. With an annual salary of $118,825, their compensation includes a monthly pay of $9,902, weekly pay of $2,285, and an hourly wage of $57.13.

Each of these positions offers a unique angle on the real estate market, demanding specific skills and offering substantial financial rewards.

For those looking to venture beyond traditional flipping, these roles provide exciting, high-paying opportunities in the dynamic world of real estate.

How To Estimate Your House Flipping Salary

Estimating salary and profits in house flipping is crucial for investors to evaluate the potential return on their investment.

Here are the expert methods we use at Real Estate Skills to calculate these profits, each providing a different perspective on the possible earnings.

Read Also:  Flipping A House Checklist: 10 Essential Steps For Rehabbing

First, Consult Industry Averages for Net Profit

A realistic approach to estimating profits is by using industry averages. Common house flippers suggest a 15% margin is a practical expectation for property flips.

A 10-20% margin is considered a reasonable standard after accounting for rehabbing and financing costs.

Based on this 15% margin, your expected profits could range as follows:

• $15,000 profit on a $100,000 property

• $37,500 profit on a $250,000 property

• $60,000 profit on a $400,000 property

• $90,000 profit on a $600,000 property

Then, Realistically Estimate How Many Houses You Can Flip A Year

For those new to real estate investments, especially flipping houses, it's common to underestimate the time required for each project.

The average full-time house flipper can expect to flip 2 to 7 houses a year.

This rate means that seasoned investors can manage to flip a house approximately every two months. Achieving such a flipping rate demands excellent project management skills and the ability to handle multiple projects simultaneously.

For beginners, a more realistic target is completing 1 to 3 flips per year. This achievable goal for new investors can lead to significant earnings:

• 1 Flip: $32,000

• 2 Flips: $64,000

• 3 Flips: $96,000

• 4 Flips: $128,000

• 5 Flips: $160,000

• 6 Flips: $192,000

The number of house flips completed in a year is a key factor in determining your earnings from flipping houses.

Unlike a fixed salary, flipping can significantly multiply your income within a single year.

Use The 70% Rule For House Flipping

The 70% Rule is a straightforward yet effective formula used by real estate investors to determine the maximum price they should pay for a property.

It helps in budgeting costs and ensures a lucrative outcome. The rule is as follows:

After Repair Value (ARV) x 70% - Repairs = Maximum Allowable Offer

1. Assess the After Repair Value (ARV)

To apply this rule, first, determine the ARV of the property. This involves analyzing the local market to understand the fair value of comparable houses and fixer-uppers in terms of size and amenities.

For instance, if similar homes are selling for $100,000, you can anticipate selling your flipped house at a comparable price.

2. Budget for Repairs

The next step is to budget for repairs conservatively. Even with thorough inspections, unexpected issues often arise once the renovation begins.

Being conservative in your repair budget is crucial to avoid overshooting your expenses.

3. Make an Offer

Based on your market research and repair budget, make an offer on the house.

For example, if 3-bedroom, 2-bathroom houses in your market sell for $200,000 (the ARV) and you estimate $30,000 for repairs, your maximum offer price would be:

$200,000 x 70% - $30,000 = $110,000

This offer ensures a potential profit, excluding associated fees. If the property sells for $200,000, you could realize a $60,000 profit, a 43% return on investment.

Please note that this simple example did not reflect certain expenses (like closing costs or financing costs) or for the investor’s time or the time value of money.

Thoughts On The 70% Rule

While the 70% Rule is an excellent starting point for analyzing investments, it should not be the sole factor in decision-making. It's best used as an initial assessment tool, a part of a more comprehensive analysis.

At Real Estate Skills, we advocate for using the 70% Rule to identify promising deals but emphasize the importance of a deeper dive into each investment's specifics.

Read Also:  House Flipping Calculator: How To Calculate ROI For Fix & Flips

How To Maximize Profits In House Flipping

Here are several key steps to help you enhance your profits in the house-flipping business:

1. Develop a Comprehensive Business Plan: A structured house flipping business plan is vital. Include your vision, objectives, funding, financial goals, and strategies for building a network of real estate professionals.

2. Understand and Mitigate Risks: Be prepared for market changes and renovation surprises. Conduct detailed property due diligence and have contingency plans in place.

3. Choose the Right Location: Select properties in neighborhoods with growth potential, good amenities, and strong demand.

4. Identify Ideal Properties for Flipping: Target undervalued properties with potential for cosmetic improvements and avoid those with significant structural issues.

5. Evaluate Investment Potential Thoroughly: Use key metrics like ROI, ARV, and cost per square foot to assess each property's investment potential.

6. Perform Detailed Home Inspections: Identify hidden issues that could impact renovation costs and overall profitability.

7. Make Smart Renovations: Focus on improvements that increase property value without overcapitalizing. Look for quality materials at reasonable prices.

8. Choose the Right Financing Option: Evaluate various financing sources, including traditional mortgages, hard money loans, and private investors, to find the most suitable option for your project.

9. Assemble a Skilled Team: Build a team of reliable professionals, including real estate agents, contractors, inspectors, and legal advisors.

10. Implement Efficient Systems: Use CRM and project management tools to streamline operations and stay on top of project timelines and budgets.

11. Price the Property Appropriately: Set a competitive selling price based on thorough market analysis and property appraisals.

12. Employ Effective Marketing Strategies: Utilize social media, email marketing, virtual tours, and professional staging to attract potential buyers.

13. Stay Informed and Adaptable: Keep up with market trends, adjust strategies as needed, and continuously educate yourself on the house-flipping process.

By following these steps and maintaining a focus on strategic planning, risk management, and market research, you can enhance your success in the house-flipping industry.

Read Also: 10 House Flipping Tips To Maximize Your ROI

Flipping Houses Salary: Frequently Asked Questions (FAQ)

Now let’s go over the most common questions we get at Real Estate Skills about house flipping salaries.

For more, in-depth training on how to maximize your salary, sign up for our FREE training on house flipping. Our students nationwide have taken advantage of this lucrative market. Don’t miss out on your opportunity for financial freedom!

What Is The Average Salary for Flipping Houses?

The average profit per flip across the nation, as of late 2021, was $68,847. If a house flipper completes one deal per year, it equates to an annual salary of around $69,000. However, most flippers work on multiple houses per year, with their income limited only by their ability to scale.

How Much Money Can You Make A Year Flipping Houses?

A real estate flipper's potential earnings are limitless but generally depend on the number of homes flipped. On average, professionals aim for a net profit of $25,000 per flip. With a five-month average closing time for a flip, this equates to about $60,000 yearly, assuming a consistent pace.

How Much Does The Average House Flipper Make?

In the 3rd quarter of 2021, the average gross profit for a flipped transaction was $68,847. This translates to a return of over 32% on the investment.

However, profit margins have been decreasing due to slower appreciation rates in resale prices compared to purchase prices.

Do You Need A Real Estate Agent To Flip A House?

No, a real estate license isn't required to flip houses. However, obtaining one can offer advantages such as increased knowledge, access to valuable real estate tools, and resources that can simplify and enhance the profitability of your house-flipping ventures.

What Is A Fix & Flip Loan?

A fix-and-flip money loan offers short-term financing to investors for purchasing and renovating properties, typically featuring interest rates between 8% and 12%.

A lender provides funding for buying, remodeling, and quickly selling properties above their initial market value presenting both a high-risk and high-reward opportunity in real estate investing.

Do You Need A College Degree To Flip Houses?

No, a college degree is not required to succeed in house flipping. Many successful flippers also obtain a real estate license to reduce business costs related to real estate commissions. It's crucial to avoid common flipping mistakes like insufficient funds, poor planning, and pricing mishaps.

Is Flipping Houses A Good Career?

Flipping houses can be a rewarding career for those who educate themselves on proven strategies and are not seeking to make a large profit from a single deal.

In Q3 2021, over 60% of flipped properties were purchased with cash, indicating a highly competitive market.

Is Flipping Houses A Good Business?

Flipping houses can be a successful business with proper planning, market knowledge, and timing. However, it's important to manage holding times and unexpected repairs effectively.

Experienced flippers can complete 6-8 flips per year, potentially yielding six-figure profits.

Is Flipping Houses Profitable?

Yes, flipping houses can be profitable.

In 2022, the average return on investment (ROI) for house flipping was 26.9%, and gross profit was $67,900, according to Attom.

Can Flipping Houses Make You Rich?

Flipping houses can lead to significant wealth, particularly for those who are self-motivated and willing to take on the inherent risks.

Consistent flipping of multiple houses per year can accumulate considerable income.

Final Thoughts

House flipping offers the potential for significant financial gains for those who navigate it skillfully.

From understanding the fluctuations in ROI across various states to mastering the art of efficiently managing multiple flips per year, success in this field requires both knowledge and agility.

The answer to the question. “How much can you make flipping houses?" is dependent on the level of dedication, market insight, and strategic planning.

House flipping is more than just a transaction; it's a journey that combines real estate acumen with renovation creativity.

Each flip is a unique challenge and a new opportunity to sharpen your skills. Whether you're a seasoned pro or just starting, continuous learning and adapting to market trends are key to your success in this exciting and profitable realm of real estate investing.

Ready to Flip Your Way to Success?

Dive deeper with our FREE Training on House Flipping! This comprehensive course is designed to equip you with the tools, techniques, and insider knowledge you need to maximize your profits in house flipping.

Whether you're aiming to flip your first property or scale your existing portfolio, our training will provide you with actionable insights and strategies to succeed.

Start your journey towards becoming a successful house flipper, today!