How To Flip Houses In Nevada: Step By Step (2023)

The Nevada real estate market has served investors well for the better part of 20 years. When the United States was marred in the depths of the Great Recession, Nevada’s high foreclosure rate provided ample opportunities for home flippers to capitalize on some of the most attractive profit margins the industry had ever seen.

Today, investors are getting another chance to help distressed homeowners and generate profits for themselves. If for nothing else, Nevada had the fifth-highest foreclosure rate out of every state in the first quarter of this year. According to ATTOM Data Solutions’ Q1 2023 U.S. Foreclosure Activity Report, one in every 947 housing units had a foreclosure filing in the first three months of this year, trailing only Illinois, Delaware, New Jersey, and Maryland.

Foreclosures are rising in Nevada, which bodes incredibly well for anyone who has already learned how to flip houses in Nevada. But, perhaps even more importantly, it’s not too late to learn how to flip homes in Nevada and take advantage of favorable market conditions. As a result, we’ve created this guide to teach you everything you need to know, including: 

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

What Is Flipping Houses?

House flipping, otherwise known as rehabbing, is one of today’s most popular real estate investing strategies. As its name suggests, house flipping centers around buying a subject property only to fix it up and sell it (or flip it) to a subsequent buyer. On the surface, this strategy relies on three separate steps: buying, rehabbing, and selling. However, actual profits are realized only when each step complements the other.

When flipping a house, investors purchase properties at a lower price than their market value. In doing so, it’s essential to focus on homes that are undervalued, in need of repairs, or are facing foreclosure. Regardless of the reason, investors need to acquire homes from motivated sellers who are willing to part ways with the properties for less than their actual market value. 

After acquiring the property at a discount, Investors perform necessary upgrades and repairs. These renovations should be done strategically to increase profit margins. It's essential to make the right changes that enhance the property's appeal to potential homebuyers while staying within a budget.

Real estate investors generally aim to make the flipped property slightly more attractive than comparable homes. This ensures that the house receives more attention on the market without overspending on unnecessary renovations. Additionally, this attention can create buyer competition, leading to higher profit margins if done correctly. Consequently, the more interest there is in the home, the greater the chances of selling it above the asking price and increasing the return on investment (ROI).

Read Also: How To Invest In Real Estate: The Ultimate Guide

Nevada House Flipping Statistics

Learning how to flip houses in Nevada requires acute attention to detail and a firm grasp of local data and statistics. As a result, we’ve compiled a list of some of today’s most trusted home-flipping statistics to help you on your journey:

• Average Home Value: $412,415
• 1-Year Appreciation Rate: -4.1%
• Median Days To Pending Sale: 29
• Active Listings: 12,894
• Months Of Inventory: 2
• Foreclosure Rate: One in every 2,899 homes
• Population: 3,177,772
• Median Household Income: $65,686
• Unemployment Rate: 4%

*All Nevada housing market statistics are as of Q2 2023.

How To Flip Houses In Nevada (7 Steps)

Learning how to flip houses in Nevada doesn’t have to be complicated or intimidating. Instead, follow our 7-step home-flipping guide to give yourself a headstart today:

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

The sheer amount of knowledge required to flip a home successfully can be intimidating for anyone on the outside of the industry looking in. And while it’s not too much for anyone to take on by themselves, it is a lot easier with some help. As a result, aspiring home flippers are advised to seek the help of a mentor. Enlisting the services of someone who is already an accomplished home flipper is invaluable for developing inexperienced investors.

While reading reliable sources and conducting thorough research is helpful, the most effective way to improve flipping skills is by finding an experienced mentor. With a professional home flipper on their side, new investors may mitigate risk, improve efficiency, and increase their odds of making success habitual.

Perhaps even more importantly, however, a mentor will give new investors the confidence they need to take the first step. With the proper guidance, the first deal is much more approachable and easier to see through. 

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

2. Research The Local Housing Market

Learning how to flip houses in Nevada starts with referencing the most dependable resources. Here’s a list of trusted resources to start your research on the Nevada real estate market:

• Zillow Housing Data Research
• Zillow’s Nevada Market Overview
• Redfin’s Nevada Housing Market Overview
• ATTOM’s Nevada Real Estate & Property Data
• Nevada Realtors Association
• Realtor.com Nevada Housing Market Data
• SoFi’s State Foreclosure Data
• U.S. Census Bureaus’ Nevada Data
• Bureau Of Labor Statistics’ Nevada Economic Data

3. Find & Analyze Distressed Properties

There are countless ways to find and analyze distressed homes in the Nevada real estate market, the most advanced of which can get confusing. Instead of biting off more than they can chew, however, new investors should start with the 70% rule. While not to be confused with a comprehensive analysis, the 70% rule gives new investors a ballpark figure of how much they can spend on a deal while leaving room for attractive profits.

To analyze a deal with the 70% rule, investors must determine the subject property’s after-repair value (ARV)—the approximate valuation after renovating and fixing it. The most reliable method to determine the ARV is to evaluate nearby comparables (or comps) sold within the last few months. Similar homes near the subject property will tell inventors how much the completed product will be worth.

Once investors are confident they have an accurate ARV, the next step is to multiply it by 70% (or 0.70) and deduct the estimated rehab costs. The resulting number is what’s known as the maximum allowable offer (MAO), or how much the investor can spend on the home without detracting too much from profit margins.

Here is the formula:

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

Again, the 70% rule shouldn’t be used alone; it's a complementary tool for a more comprehensive analysis. Despite its shortcoming, however, it’s a great starting point for new investors.

4. Raise Capital To Fund The Deal

The next step involves raising capital to fund the deal. To be clear, investors can use their own money if they have sufficient cash reserves, but borrowing the money may be more advantageous. For starters, borrowing other people’s money means investors don’t need to deplete their entire life savings and become illiquid. Secondly, borrowing other people’s money can help investors scale their businesses in a way using their own money can’t.

Most home flippers agree that raising capital is the best way to rehab properties, which begs the question: Where do investors turn to for cash? Several options exist, but private and hard money loans are better suited for home flippers. Both sources of capital will coincide with high-interest rates, but the added costs are well worth it.

In return for agreeing to pay more in interest (sometimes as high as 15% or more), investors will gain immediate access to the capital, which is a huge advantage in today’s competitive market.

Read Also: How to Start & Grow A Real Estate Business | The (ULTIMATE) Guide

5. Close On The House

As an escrow state, the closing process in Nevada will loosely follow these steps:

• Investors will make an offer and negotiate with the seller on the purchase price. If each party can come to an agreement, a purchase and sale agreement will be created to document the terms.
• Next, the investor will ensure no ownership discrepancies by conducting a title search. Doing so will confirm a proper transfer of title and prevent issues from arising at a later date.
• Investors will walk through the property to confirm its condition.
• If nothing needs to be addressed following the title search or walkthrough, the deal will be brought to the closing table, where each party prepares and signs all the appropriate documents.
• The agents representing each party will collect and distribute funds accordingly.
• Once everything is in place, the transfer of title will be recorded with the local Recorder’s Office.

6. Renovate The Property

When flipping a house, investors prioritize cost-effective renovations that increase the property's value. That said, investors can’t simply spend as much as they want on renovations; they need to focus on the projects that will return the most on their investment. According to Remodeling Magazine, the upgrades with the best returns in Nevada and the entire Mountain region include:

• Electric HVAC Conversion: An electrical HVAC conversion will recoup about 114.5% of the original cost.
• Fiber-Cement Siding Replacement: Replacing siding with fiber cement will recoup about 107.4% of the original cost.
• Garage Door Replacement: Replacing a garage door will recoup about 99.7% of the original cost.
• Manufactured Stone Veneer: Adding manufactured stone veneers will recoup about 96.7% of the original cost.
• Vinyl Siding Replacement: Replacing siding with vinyl siding will recoup about 92.9% of the original cost.

7. Resell The House

After strategic renovations, the next step is to sell the home for more than the total amount invested. The investor should be able to make an attractive profit if the house was bought far enough below its fair market price and the renovations added enough value.

For an added margin of security, investors should consider enlisting the help of a real estate agent. While their service and experience may cost a hefty real estate commission, there’s a good chance their help will net investors more money during a sale than their fees. 

It is worth noting that investors won’t get to keep the full sale price. After reselling the home, the first order of business is to pay back the lender (plus interest). Then, and only then, will the final step be complete.

How To Find Houses To Flip In Nevada

While the median home value in Nevada is historically high, it’s possible to find discounted investment properties; investors just need to know where to look. That said, here’s a list of the best places to look for homes to flip in Nevada:

• Real Estate Agents: Real estate agents are entrenched in the local market and have first-hand knowledge of both on and off-market listings.
• The MLS: The Multiple Listings Service is the largest database of homes for sale in Nevada and an excellent source for investors who have been granted access.
• Foreclosure Auctions: After banks repossess foreclosed homes, they would rather sell them to investors at a discount than hold on to non-performing assets.
• Public Records: Foreclosures are public record and can be found at the local municipality’s Recorder’s Office.  
• Direct Mail Campaigns: Distressed homeowners can be found by mailing marketing material to a targeted audience.

Also, check out our in-depth video on "How to Gain Access to the MLS Without a License." We cover key insights and practical tips to unlock potential property opportunities you might have been missing out on!

Do You Need A License To Flip Houses In Nevada?

Investors don’t need a real estate license to flip houses in Nevada. However, having a real estate license does come with added benefits.

While getting and maintaining a real estate license will require annual fees and passing tests regularly, investors will gain access to a nationwide network of like-minded professionals and their most valued tool: the MLS. Therefore, there’s no need for Nevada real estate investors to become licensed real estate agents, but there are benefits to doing so.

Thinking about investing in real estate? Join Alex Martinez at his FREE training to learn how to get started with house flipping and wholesaling!

How To Flip A House In Nevada With No Money

Flipping a house in Nevada doesn't require personal savings or checking accounts. Instead, investors can utilize other people's funds, such as those from private and hard money lenders. These individuals are fellow investors seeking profitable opportunities, and home flippers may be just what they are looking for. As a result, securing their short-term capital is as simple as gaining their trust.

Those who have yet to learn how to flip houses in Nevada can still invest without using their cash.

Wholesaling, in particular, is an excellent investment that’s neither rehabbing nor capital intensive. Instead, wholesaling is where you acquire rights to buy a property and sell those rights to an end buyer for a fee.

Read Also: Private Money Lenders: The (ULTIMATE) Guide

Best Cities To Flip Houses In Nevada

The Nevada real estate market is full of opportunities, but the following cities may be the best places to flip real estate:

• Las Vegas: As the largest city in Nevada, Las Vegas boasts activity and demand. In addition, the city’s $392,159 median home value is below the state's average, which helps budget-conscious Las Vegas house flippers. As a result, it’s safe to assume flipping houses in Las Vegas, NV will become more popular in the years to come.
• Henderson: At $455,684, Henderson’s median home value is higher than the state average, but foreclosures remain abundant. Therefore, despite the higher price tags, investors will find plenty of opportunities to acquire deals.
• Reno: Situated by the California border, Reno has received extra attention as more people flee The Golden State’s high home values. The increase in demand has driven home prices up, but the resulting demand bodes well for investors.

Final Thoughts On Flipping Homes In Nevada

Much like the Nevada real estate market associated with the housing crisis in 2008, today’s market boasts a relatively high foreclosure rate. As a result, investors who have learned how to flip houses in Nevada will find current market conditions are working in their favor. It’s not too late for new investors to learn the necessary skills to invest in Nevada real estate.

At Real Estate Skills, our team of experts is ready to provide you with the tools you need to flip houses in Nevada. We're committed to providing the knowledge, resources, and support you need to navigate the Nevada real estate market's intricacies successfully. Avoid common mistakes and maximize your returns by leveraging our wealth of expertise.

Let RealEstateSkills.com be your trusted partner in turning your Nevada house-flipping goals into profitable realities. So get started with us today.