How To Flip Houses In Idaho: Step By Step (2024)

Learning how to flip houses in Idaho has already proven it can be a profitable undertaking. Still, the results correlate directly to the hard work and preparation investors will put in beforehand. Learning the ropes and understanding the unique aspects of the Idaho real estate market can make all the difference between a successful flipping career and an average one.

There may be no better time to learn how to flip houses in Idaho than today. If for nothing else, Idaho boasts a dynamic real estate market with numerous opportunities.Its robust economy, growing population, and diverse range of properties present an attractive landscape for real estate investing.

This comprehensive guide will walk you through flipping houses in Idaho. By the end, aspiring investors will have a foundational knowledge of everything they need to know about flipping houses in Idaho, including:

• What Is Flipping Houses?
• Idaho House Flipping Statistics
• How To Flip Houses In Idaho (7 Steps)
• How To Find Houses To Flip In Idaho
• Do You Need A License To Flip Houses In Idaho?
• How To Flip A House In Idaho With No Money
• Best Cities To Flip Houses In Idaho
• Final Thoughts On Flipping Homes In Idaho

*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step). Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house in Idaho as a beginner! 

Together, Alex & Stan have completed over 1,000+ house flips. What you learn in this video will give you the confidence and guidance to successfully complete your fix-and-flip project!

What Is Flipping Houses?

Flipping houses in Idaho is becoming one of the best ways to invest capital in 2023, requiring investors to adhere to three fundamental steps: buying, rehabbing, and selling. Like other states, successful house flipping in Idaho revolves around acquiring undervalued properties, renovating them, and reselling them at a higher price.

The key to rehabbing homes in Idaho is identifying motivated sellers willing to part with their properties below market value. Investors should strategically invest in upgrades that enhance the property's appeal to potential buyers and increase the asset's value. By creating a property that stands out among nearby “comps,” investors can maximize potential returns and capitalize on the state's thriving real estate market.

House flippers often rely on private and hard money loans to finance these projects, which provide quick access to funds for fast-paced deals. After completing the renovations, the property is put back on the market to be sold for a higher purchase price, allowing investors to take their hard-earned profits.

Learning how to flip houses in Idaho is exciting and rewarding, but the process does require a well-thought-out approach and a deep understanding of the local real estate market. Throughout this guide, we'll dive into the process of flipping houses in Idaho, equipping investors with the knowledge and strategies they need to maximize their opportunities.

Idaho House Flipping Statistics

Investors should learn local indicators to better understand the Idaho real estate market and its opportunities. Instead of looking at just any statistics, however, we’ve listed the most important ones to start with:

• Average Home Price: $442,820
• Median Sale Price: $459,900
• 1-Year Appreciation Rate: -8.0%
• Median Days On Market: 24
• Median Days To Pending: 13
• Homes For Sale: 7,960
• Homes Sold Above List Price:2%
• New Listings: 2,848
• Months Of Supply:2
• Foreclosure Rate: One in every 5,378 households
• Population: 1,939,033
• Median Household Income: $63,377
• Unemployment Rate: 7%

*All Idaho housing market statistics are as of the third quarter of 2023.

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How To Flip Houses In Idaho (7 Steps)

Understanding how to flip houses in Idaho doesn’t require a professional’s insight. Anyone can learn how to flip houses in Idaho if they adhere to the seven steps outlined below:

1. Find A House-Flipping Mentor
2. Research The Local Housing Market
3. Find & Analyze Distressed Properties
4. Raise Capital To Fund The Deal
5. Close On The House
6. Renovate The Property
7. Resell The House

1. Find A House-Flipping Mentor

Few things are more valuable to new investors than the guidance of experienced house flippers. Unfortunately, few things are more overlooked than the help veteran investors may provide for their less-experienced counterparts. We highly recommend enlisting the services of a local professional. Doing so may expedite the learning process and mitigate risk, which is invaluable to new investors.

A house-flipping mentor offers a wealth of knowledge, from identifying suitable properties to understanding market trends and renovation strategies specific to Idaho's real estate landscape. With their support, investors can confidently tackle their first house-flipping deal. They can contribute to a solid business plan tailored to the unique challenges and opportunities found in the Gem State.

The advantages of having a mentor go beyond the technical aspects of house flipping. A mentor can instill the confidence needed to take that crucial first step. With their guidance and encouragement, what may have seemed daunting becomes approachable and achievable. Moreover, a mentor can provide a supportive network, connecting investors with essential industry connections and offering a unique perspective on the ever-evolving market.

Ready to start house-flipping in Idaho? Join Alex Martinez at his FREE training to learn how to get started with house-flipping and wholesaling!

2. Research The Local Housing Market

Anyone learning how to flip houses in Idaho must complement the experience they gain from a mentor with objective facts and data. For the best sources of information in Idaho, here’s a list of the state’s most trusted real estate sites:

• Zillow Housing Data Research
• Zillow’s Idaho Market Overview
• Redfin’s Idaho Housing Market Overview
• Realtor.com’s Idaho Market Overview
• Realtor.com’s Residential Data Library
• Idaho Association Of Realtors
• ATTOM Data Solutions’ Idaho Real Estate & Property Data
• SoFi’s State Foreclosure Data
• U.S. Census Bureau’s Idaho Data
• Bureau Of Labor Statistics’ Idaho Economic Data
• Idaho Real Estate Commission
• Federal Reserve Bank of St. Louis’ Idaho Data

3. Find & Analyze Distressed Properties

Finding and analyzing distressed properties is critical to learning how to flip houses in Idaho. One of the best ways to get the ball rolling is by employing the 70% rule. This rule is a valuable guideline to prevent overpaying for potential deals and ensure sufficient room for profitable margins.

To begin, it's essential to determine the property's after-repair value (ARV); this involves thorough research and analysis of recent sales data of comparable properties in the same area. Alternatively, utilizing reliable ARV calculators can help estimate the potential housing prices after renovations are completed. Knowing the ARV provides insight into the property's expected value after repairs.

Once the ARV is established, investors can apply the 70% rule. Multiply the ARV by 70% (or 0.70) and subtract the estimated rehab costs, including lesser-known expenses like holding costs, insurance, and property taxes. The resulting figure represents the maximum allowable offer (MAO), the upper limit of how much an investor can spend to acquire a property without hurting profit margins.

Here is the formula:

ARV - Fixed Cost - Rehab Costs - Desired Profit = Maximum Allowable Offer (MAO)

While the 70% rule provides a quick snapshot of a deal's potential, it is not intended to analyze a deal alone. Instead, consider it a complementary tool to understand the property's potential. Factors such as market trends, potential risks, and the property's condition should also be considered. By integrating the 70% rule with comprehensive research, you can confidently find and analyze distressed properties with excellent potential.

Read Also: Estimating Rehab Costs: A 5-Step Guide For Real Estate Investors

4. Raise Capital To Fund The Deal

Once you've identified a promising distressed property for your house-flipping venture in Idaho, the next critical step is to secure the necessary capital to fund the deal. While some investors may utilize their cash reserves, exploring external financing options can offer significant advantages, especially for those aiming to scale their house-flipping businesses without depleting their savings.

In Idaho, private and hard money loans are the preferred funding sources for home flippers. Private money lenders typically ask for 8.0% to 12.0% in interest somewhere in the neighborhood, plus zero to two points. On the other hand, hard money lenders usually want 2.0% to 18.0%, plus as many as five points. For added context, points are about 1.0% of the loan amount.

Despite the higher interest rates associated with these loans, they provide crucial benefits for investors. One of the primary advantages is quick access to capital, which is essential in Idaho's competitive real estate market. Most lenders will provide enough money to cover about 70% of the ARV. Additionally, these lenders often have more flexible approval requirements than traditional banks, streamlining the funding process and allowing investors to move swiftly.

These loans are designed for short-term projects, perfectly aligning with the typical timeline of Idaho house flippers. Unlike long-term mortgages, flip loans prevent investors from incurring years of amortized payments, enabling them to concentrate on the immediate success of their projects. By leveraging private and hard money loans in Idaho, investors can ensure that their flip projects are adequately funded and increase their chances of achieving attractive profit margins.

Read Also: Hard Money Lenders 101: What Are They & How To Find Them

5. Close On The House

Closing on a house in Idaho is a pivotal step in the house-flipping process, marking the transition from purchasing the distressed property to commencing the renovation and resale phase. To successfully close on the house and secure the investment, follow these steps to ensure a smooth, efficient transaction:

• Negotiate & Execute The Purchase Agreement: The process begins with negotiating and finalizing the purchase and sale agreement with the seller. This agreement outlines essential details such as the purchase price, contingencies, closing date, and other milestones.
• Escrow & Title Search: Idaho operates under an escrow system, ensuring a neutral third party holds the funds and documents related to the transaction until all prerequisites are met. During this time, a thorough title search is conducted to ensure a clear transfer of ownership.
• Due Diligence & Property Inspection: Conduct a comprehensive property inspection before closing to assess its condition and identify potential issues. Perform due diligence by walking through the investment property, conducting appraisals, and addressing contingencies.
• Review & Sign Documents: Gather with relevant parties, including agents representing both sides of the transaction, to review and sign all necessary paperwork, formalizing the property transfer.
• Fund Disbursement & Ownership Transfer: At closing, the agreed-upon funds are collected and distributed according to the purchase and sale agreement. The original owner will relinquish ownership by handing over the keys to the property.
• Title Recording: After completing all necessary steps and finalizing the deal, the transfer of title is officially recorded with the local Recorder's Office, solidifying the property's new ownership.

Navigating the closing process ensures a smooth transition to the renovation stage, allowing house flippers in Idaho to focus on enhancing the asset’s value and increasing their chances of more significant profits.

6. Renovate The Property

Once you've acquired the distressed property in Idaho, the next phase is the renovation process. Renovations are pivotal in increasing the property's value and potential for higher returns.

Focusing on strategic and cost-effective renovations can significantly increase the property's market value and appeal to potential buyers. With careful planning and attention to detail, a renovated property will stand out and attract high-quality buyers, increasing the likelihood of a profitable flip.

According to Remodeling Magazine, the renovations that return the most money to investors at the time of a sale in Idaho (and the rest of the Mountain region) are:

• Electric HVAC Conversion: Recoups 114.5% of the original cost
• Fiber-Cement Siding Replacement: Recoups 107.4% of the original cost
• Garage Door Replacement: Recoups 99.7% of the original cost
• Manufactured Stone Veneer: Recoups 96.7% of the original cost
• Vinyl Siding Replacement: Recoups 92.9% of the original cost

7. Resell The House

To ensure a successful and timely sale, consider the following essential steps:

• Strategic Marketing: Effectively market the property using various listing platforms and hosting open houses. Additionally, enlisting the expertise of a professional real estate agent or Realtor can provide a significant advantage.
• Timely Sale: Aim to sell the property quickly to avoid mounting holding costs, such as property taxes and utility bills. A fast sale lets investors realize profits sooner and move on to the next lucrative venture.
• Accurate Pricing: Set the selling price accurately by evaluating recent comparable sales and local market trends. Overpricing can lead to extended market time while underpricing might mean leaving money on the table.
• Showcase Renovations: Highlight the strategic renovations made during the flip to justify the asking price to potential buyers. Showcase the property's enhanced features, such as modernized kitchens, bathrooms, and energy-efficient enhancements, to create a strong selling point.
• Effective Negotiation: A skilled real estate agent can be instrumental during the negotiation process, working to secure the best possible offer from potential buyers.
• Streamlined Closing: Prepare all necessary paperwork and collaborate with the agent, title company, and other parties to expedite the closing process. A smooth closing ensures the transaction is completed efficiently, allowing you to realize your profits and move forward with new ventures.

Read Also: Realtor Vs. Real Estate Agent: Salaries, Differences & Similarities

How To Find Houses To Flip In Idaho

Finding and identifying houses to flip in Idaho can be rewarding when armed with the right strategies. Here are some effective methods to find profitable opportunities:

• Partner With Local Real Estate Experts: Partner with experienced local real estate agents and Realtors who know the local market.
• Attend Foreclosure Auctions: Consider attending local foreclosure auctions to bid on repossessed homes that banks would rather sell than hold and incur additional costs.
• Reach Out With Direct Mail: Conduct a direct mail campaign to target distressed homeowners and notify them of your interest in purchasing their properties.
• "Driving for Dollars": Drive through neighborhoods to identify poorly kept or neglected homes.
• Network With Wholesalers: Connect with real estate wholesalers specializing in finding rehab properties.

By combining these strategies and tapping into the expertise of local real estate professionals, investors can unlock a world of opportunities when they learn how to flip houses in Idaho.

Read Also: Finding Motivated Seller Leads: Free & Paid Tactics

Do You Need A License To Flip Houses In Idaho?

A real estate license is not mandatory for flipping houses in Idaho, but obtaining one can offer significant benefits. With a license, investors gain access to valuable tools and a vast network of professionals, such as the Multiple Listing Service (MLS), the country's largest real estate database.

Becoming a licensed agent can elevate credibility, increase knowledge of real estate processes, and provide access to resources that make investing more efficient.

Read Also: How To Get MLS Access: The (Ultimate) Guide

How To Flip A House In Idaho With No Money

Flipping houses without using personal funds is entirely possible with alternative financing options. Private money loans and hard money loans are valuable resources that enable investors to flip houses without relying on traditional banks or undergoing lengthy credit checks.

Private money loans are obtained from individuals with available capital, such as friends or family, providing quick access to funds with minimal red tape. Similarly, hard money loans offer structured financing and expedited approval processes, making them ideal for investors seeking immediate access to capital.

Another viable strategy for flipping houses with no upfront investment is wholesaling. In this approach, investors secure property rights through a contract with the owner and sell those rights to another buyer for a fee; this allows investors to profit without using their funds and capitalize on more situations.

Best Cities To Flip Houses In Idaho

Anyone learning how to flip houses in Idaho should consider investing in the following cities:

• Boise: Real estate investors in Idaho should strongly consider working in Boise. Whether investing in rental properties or flips, Boise offers a thriving market for investors to capitalize on.
• Idaho Falls: North of Pocatello and South of Rexburg, Idaho Falls is gaining a lot of attention from investors. If for nothing else, home buyers are still looking for inventory, and the right investment opportunities may give them just what they need.
• Caldwell: Northwest of Nampa and west of Boise, Caldwell’s median prices give investors affordable opportunities. The latest price drop could help investors land an off-market fixer-upper for an attractive bargain.

Final Thoughts On Flipping Homes In Idaho

Learning how to flip houses in Idaho offers an exciting opportunity for investors to capitalize on the state's thriving real estate market. By following strategic steps, such as finding profitable properties, conducting cost-effective renovations, and utilizing alternative financing, aspiring house flippers can increase their odds of success.

At Real Estate Skills, our team of experts is ready to provide you with the tools you need for flipping houses in Idaho. We're committed to providing the knowledge, resources, and support you need to successfully navigate an Idaho property flip. So avoid common mistakes and maximize your returns by leveraging our expertise today.