How To Flip Houses In Pennsylvania: 15-Step Home Renovation Guide

The most effective wealth-building vehicle of all is buying an investment property. The real estate industry can be daunting. It is vast and covers numerous asset classes, strategies, geographies, and styles - where should you even begin?

If you want to learn how to flip houses in Pennsylvania, you’ve come to the right place. This state-specific guide will teach you everything you need to know about flipping homes in The Keystone State.

• What Is Flipping Houses?
• Why Flip Houses In Pennsylvania?
• Pennsylvania House Flipping Statistics
• How To Flip Houses In Pennsylvania In 15 Steps
• How Much Do House Flippers Make In Pennsylvania?
• Is House Flipping Illegal In Pennsylvania?
• Do You Need A License To Flip Houses In PA?
• How Much Does It Cost To Flip A House In PA?
• How To Flip A House In Pennsylvania With No Money?
• What Is The Best Place To Flip Houses In Pennsylvania?
• Is It Hard To Flip Houses In Pennsylvania? 
• How Do You Find Contractors For Flipping Houses In Pennsylvania?
• Final Thoughts On Flipping Homes In Pennsylvania

Fix and flip investing is a fantastic place to start your journey to financial freedom!

According to ATTOM Data Solutions’ third-quarter 2022 U.S. Home Flipping Report, 92,422 single-family houses and condominiums were flipped in the third quarter of last year. The average gross profit was $62,000, translating to a return on investment (ROI) of about 25%. Though the profits might be enticing, there are a handful of steps you should consider before diving into the space.

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What Is Flipping Houses?

Flipping houses is the practice of purchasing a house at a markdown to its market price, performing renovations on the interior and/or exterior, and then reselling it for a profit.

The strategy, if done correctly, can be extremely lucrative.

Though the most common way to flip a house is with a single-family home, one can also flip a duplex, triplex, multi-family, or short-term rental. Across the United States, including Pennsylvania, there are various opportunities to purchase, renovate, and sell these houses.

Pennsylvania House Flipping Statistics

According to the 2021 Pennsylvania census, there are 5,770,601 housing units across the state. Of those units, 69.2% are owner-occupied. This indicates a strong desire among individuals in Pennsylvania to be home buyers instead of renters.

With such a significant demand for housing in the state, there is potential for fix and flip investors to generate substantial profits through the purchase, renovation, and resale of these properties at a higher purchase price. And, that is exactly what has been happening.

 That is staggering growth. One of the other major reasons so many investors have flocked to Pennsylvania to operate their house-flipping business is the state’s above-average foreclosure rate.

 When learning how to flip houses in Pennsylvania, you should prioritize recent and dependable housing indicators, not unlike those listed below (data provided by the U.S. Census Bureau, RedFin, and SOFI):

• Population: 13,002,700
• Employment Rate: 60.0%
• Median Household Income: $73,824
• Median Sale Price: $281,200 (+7.1% Year-Over-Year)
• Number Of Homes Sold: 7,163 (-4.4% Year-Over-Year)
• Median Days On Market: 51 (+6 Year-Over-Year)
• Number Of Homes For Sale: 31,161 (-0.98% Year-Over-Year)
• Number Of Newly Listed Homes: 9,416 (-11.7% Year-Over-Year)
• Months Of Supply: 3 (+0 Year-Over-Year)
• Homes Sold Above List Price: 26.6% (-1.1 Points Year-Over-Year)
• Homes With Price Drops: 22.5% (+1.0 Points Year-Over-Year)
• Foreclosure: 1,021

*All Pennsylvania housing market statistics are as of Q1 2025

How To Flip Houses In Pennsylvania In 15 Steps

Whether you are a seasoned real estate market investor or a completely new beginner, learning how to flip houses in Pennsylvania doesn’t need to be intimidating.

If you want to learn how to flip houses in Pennsylvania, consider the following step-by-step guide.

1. Pick Your Market
2. Find Your Money
3. Find Three Contractors
4. Find An Investor-Friendly Agent
5. Find A House To Flip
6. Make Discovery Calls To Listing Agents
7. Analyze The Property
8. Call Agents & Submit Written Offers
9. Perform Due Diligence When The Offer Is Accepted
10. Close On The Deal
11. Renovate The House
12. Prep & List The House On The MLS
13. Field Offers & Negotiate
14. Accept The Best Offer
15. Sell The House & Get Paid

Pick Your Market

Choosing the right market is a crucial first step in flipping houses successfully in Pennsylvania. The state offers a diverse range of real estate markets, each with its own unique characteristics and potential for profitability. Whether you're looking at urban areas like Philadelphia and Pittsburgh or more suburban and rural locations, understanding the local real estate trends, economic conditions, and buyer demographics is essential. Researching factors such as median home prices, days on market, and population growth can help you identify areas with strong demand and good investment potential.

When picking your market in Pennsylvania, it's also important to consider the competition. Some areas may have a higher concentration of house flippers, which can drive up property prices and reduce profit margins. On the other hand, less competitive markets might offer lower acquisition costs but could come with challenges such as slower property appreciation or a smaller pool of potential buyers. Balancing these factors is key to selecting a market that aligns with your investment goals and risk tolerance.

Additionally, consider the specific property types and neighborhoods within your chosen market. Pennsylvania's real estate landscape includes everything from historic homes in need of restoration to newer suburban developments. Depending on your expertise and resources, you might focus on certain property types that are in high demand or areas that are undergoing revitalization. By picking a market that fits your strategy and staying informed about local market conditions, you can maximize your chances of a successful house flip in Pennsylvania.

Perform Due Diligence When The Offer Is Accepted

Once your offer on a property in Pennsylvania is accepted, it's crucial to perform thorough due diligence to ensure that the investment is sound and that there are no hidden issues that could affect your flipping project. This phase involves verifying all the details related to the property and preparing for the next steps in your renovation process.

Begin with a comprehensive inspection of the property to uncover any potential problems that may not have been evident initially. A detailed inspection can reveal structural issues, plumbing and electrical problems, and other defects that could significantly impact repair costs and the overall feasibility of the flip. Addressing these issues early helps you avoid unpleasant surprises and ensures you have a clear understanding of the property's condition.

In addition to the inspection, you should finalize the scope of work for the renovations. This involves outlining all the necessary repairs and improvements needed to bring the property up to the desired standard and align with your after-repair value (ARV) expectations. Work closely with contractors to develop a precise scope of work, including timelines and cost estimates. Properly defining the scope of work helps manage expectations, control costs, and ensure that the renovation meets your investment goals.

Performing due diligence is a critical step in the house flipping process in Pennsylvania. By thoroughly inspecting the property and defining a clear scope of work, you set the stage for a successful renovation and a profitable flip. Taking these steps ensures that you are well-prepared to move forward with your project and maximize your investment potential.

Close On The Deal

Closing on a house flipping deal in Pennsylvania is a pivotal step that finalizes the transaction and transfers ownership of the property to you. This process involves several key steps to ensure that everything is in order and that the purchase is completed smoothly.

Start by scheduling a final walk-through of the property before the closing date. This allows you to confirm that the seller has fulfilled any agreed-upon repairs and that the property is in the condition expected. It's your last opportunity to ensure that everything is as it should be before the transaction is finalized. Pay close attention to any remaining issues that could affect the property's value or your renovation plans.

On the day of closing, you'll need to attend a meeting with the seller, the seller’s agent, and possibly a representative from the title company. During this meeting, you’ll review and sign the closing documents, which include the deed of transfer, loan documents (if applicable), and various legal disclosures. Be prepared to provide the remaining funds for the purchase, typically in the form of a certified check or wire transfer. Ensure that you receive a copy of all signed documents for your records.

Finally, once the paperwork is completed and the payment is made, the property’s title will officially transfer to you. This marks the successful conclusion of the purchase process, and you’ll receive the keys to the property. With the deal closed, you can now proceed with your renovation plans and start working toward flipping the house.

Closing on the deal is a crucial step in the house flipping process in Pennsylvania. By carefully managing this phase, you ensure a smooth transition of ownership and set the stage for a successful renovation and resale.

Renovate The House

Renovating the house is a critical phase in flipping properties in Pennsylvania, where the goal is to align the property’s condition with your projected After-Repair Value (ARV) while ensuring it remains competitive with comparable properties in the area. To achieve this, focus on enhancing the home’s appeal without over-improving it beyond what the neighborhood can support. This approach helps to stay within budget while maximizing the potential return on investment.

Before beginning the renovation process, ensure that you have all the necessary documentation in place to protect yourself and streamline the project. Here are six essential documents to have:

• Independent Contractor Agreement: This document outlines the terms and conditions between you and the contractor, specifying payment terms, project timelines, and responsibilities. It establishes a clear working relationship and helps avoid misunderstandings or disputes during the renovation.

• Final Scope of Work: A comprehensive document detailing every task, material, and timeline required for the renovation. It serves as a blueprint for the project, ensuring that the contractor understands exactly what needs to be done, which helps keep the renovation on track and within budget.

• Payment Schedule: This document defines the amounts and timings of payments to the contractor, typically linked to the completion of specific project milestones. It ensures that payments are made as work progresses, keeping the project on schedule and motivating the contractor to meet deadlines.

• Insurance Indemnification Agreement: This agreement ensures that the contractor has appropriate insurance coverage and agrees to indemnify you against any accidents or damages that occur on the property. It protects you from potential liability and financial loss during the renovation.

• W-9 Form: This tax form collects the contractor’s taxpayer identification information, which is necessary for IRS reporting. It ensures compliance with tax regulations and allows you to issue a 1099 form at the end of the year for any payments made to the contractor.

• Final Lien Waiver: This document, signed by the contractor, confirms that they have been paid in full and relinquish any future claims against the property. It protects you from additional financial claims after the renovation is complete.

With these documents prepared and in place, you can proceed confidently with the renovation process, knowing that your investment is safeguarded and the project is set up for success.

This is a lot of information to take in, and navigating the complexities of flipping houses in Pennsylvania can be challenging. If you're interested in learning how to flip houses in Pennsylvania successfully, please enroll in our free training program. Our program will provide you with everything you need to confidently and profitably flip homes inPennsylvania.

Prep & List The House On The MLS

The final step in flipping houses in Pennsylvania involves prepping and listing the property on the Multiple Listing Service (MLS). This stage is crucial for attracting potential buyers and achieving a successful sale. The process includes several key tasks to ensure the home is presented in the best possible light and priced competitively to maximize returns.

1. Final Punchlist: Before listing the property, complete a final punchlist to address any remaining issues. This checklist should include minor repairs, touch-ups, and cleaning tasks that can impact the property's presentation. Ensuring that everything is in perfect condition helps make a strong first impression and can prevent potential buyers from being deterred by overlooked details.

2. Home Staging: Home staging is a critical element in showcasing the property’s potential. According to the Real Estate Staging Association (RESA) via the National Association of Realtors, "With an average investment of 1% of the sale price into staging, about 75% of sellers saw an ROI of 5% to 15% over asking price." Effective staging involves arranging furniture, decor, and accessories to highlight the home's best features and create a welcoming atmosphere. This investment can significantly enhance the property’s appeal and potentially lead to higher offers.

3. Professional Photos: High-quality, professional photos are essential for making a strong online impression. Invest in a professional photographer to capture well-lit, high-resolution images of the home. These photos should showcase the property’s key features and help buyers visualize themselves living in the space. Good photography can attract more interest and lead to quicker sales.

Set An Enticing Asking Price

Setting an enticing asking price is pivotal to the successful sale of your flipped property. Start by analyzing the market data and comparable sales in the area to determine a competitive price point. Consider factors such as recent sales of similar homes, current market trends, and the property's unique features. Pricing the home too high can deter potential buyers, while pricing it too low may result in lost profits. By setting a strategic and appealing asking price, you can attract serious buyers and increase the likelihood of a successful sale.

Field Offers & Negotiate

Once your flipped property is listed on the MLS, the next step is to field offers and negotiate with potential buyers. This stage involves evaluating incoming offers, negotiating terms, and ultimately selecting the best deal to move forward with. It’s a critical phase where your goal is to secure the most favorable terms while ensuring a smooth transaction process.

Start by reviewing each offer carefully, considering not just the offer price but also the terms and conditions proposed by the buyers. Pay attention to contingencies, such as inspection and financing conditions, as these can affect the overall attractiveness and feasibility of the offer. A higher offer price may not always be the best choice if it comes with stringent contingencies or an extended closing timeline.

Effective negotiation is key to maximizing your return on investment. Engage in open communication with prospective buyers and be prepared to counter-offer or request adjustments to terms. Flexibility on issues like closing dates or repair requests can sometimes lead to better offers or terms. Aim to create a win-win situation where both parties feel satisfied with the deal.

In this process, it’s also beneficial to work closely with a skilled real estate agent who can provide valuable insights and assist with negotiations. Their experience and knowledge of the local market can help you make informed decisions and navigate the negotiation process more effectively.

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How Much Do House Flippers Make In Pennsylvania?

House flippers in Pennsylvania can achieve impressive returns, with the average gross flipping profit reaching $80,000 in 2023, according to ATTOM Data Solutions. However, this figure can vary significantly depending on factors such as the location, the extent of renovations required, and the current market conditions. Pennsylvania offers a wide range of opportunities for house flippers, from urban centers like Philadelphia to smaller cities with growing markets, allowing investors to tailor their strategies to maximize profitability.

Pennsylvania is home to some of the most profitable cities for house flipping in the nation. According to the Home Flipping Report by ATTOM Data Solutions, three of the top five cities with the nation's largest gross flipping profits on median-priced transactions are in Pennsylvania:

• Philadelphia, PA: $95,000 average gross flipping profit
• Pittsburgh, PA: $85,000 average gross flipping profit
• Allentown, PA: $78,000 average gross flipping profit

These cities stand out not only for their strong real estate markets but also for their relatively low property acquisition costs, which create an ideal environment for house flipping. Investors targeting these areas can capitalize on the combination of rising home prices and demand for renovated properties, making Pennsylvania a highly attractive state for those looking to venture into house flipping.

To maximize profits in Pennsylvania, it's crucial for investors to understand local market trends, carefully manage renovation budgets, and secure properties at competitive prices. With the right approach, house flippers in Pennsylvania can achieve significant financial success, particularly in the state's most profitable markets.

Is House Flipping Illegal In Pennsylvania?

House flipping is not illegal in Pennsylvania, but it is subject to certain regulations and legal considerations that investors must follow. The state requires compliance with local zoning laws, building codes, and property disclosure requirements. Additionally, investors should be aware of the Pennsylvania Real Estate Licensing and Registration Act, which may require individuals engaging in frequent property sales to obtain a real estate license. Violating these regulations can lead to legal consequences, so it's essential to ensure all transactions are conducted within the legal framework.

It's also important to note that fraudulent practices, such as misrepresenting the condition of a property or inflating appraisals, are illegal and can result in severe penalties, including fines and imprisonment. To avoid legal issues, house flippers in Pennsylvania should work with licensed professionals, conduct thorough due diligence, and adhere to ethical practices throughout the flipping process. By staying informed and compliant, investors can successfully and legally flip houses in Pennsylvania.

Read Also: Is Wholesaling Real Estate Legal In Pennsylvania?

Do You Need A License To Flip Houses In PA?

No, you don’t need a license to flip houses in Pennsylvania, but it might be a good idea to get one anyway.

If you plan on flipping a number of houses within the state, you’ll end up paying a pretty penny to your real estate agent when he or she markets and sells the property on your behalf.

Getting a license will not only help you avoid these fees, but it’ll also give you access to additional resources (like the MLS) not readily available to other investors.

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

How Much Does It Cost To Flip A House In Pennsylvania?

Flipping a house in Pennsylvania can be a profitable venture, but it's essential to understand the various costs involved to ensure a successful investment. From the initial purchase to renovation and carrying costs, several factors contribute to the overall expenses of a house-flipping project in the state. Understanding these costs will help you accurately budget and maximize your potential profits.

The Home Purchase Price

In Pennsylvania, the median home price is around $260,000 as of 2024, though this can vary significantly depending on the location. For instance, homes in Philadelphia or Pittsburgh tend to be priced higher than those in more rural areas. Flippers can find distressed properties for as low as $50,000 in some regions, while more desirable areas might require an investment of $300,000 or more. Typically, you’ll need to put down 5-20% of the purchase price upfront, with the remaining amount financed through a mortgage or other funding options such as hard money loans.

The Home Repair Costs

Renovation costs in Pennsylvania can range widely depending on the scope of the project and the condition of the property. On average, a standard rehab for a three-bedroom, one-bathroom home might cost between $20,000 to $50,000. This typically includes updates to kitchens and bathrooms, flooring, painting, and basic repairs. If structural work is required or high-end finishes are desired, costs can climb to $75,000 or more. It’s recommended to obtain multiple quotes from licensed contractors to get a precise estimate for your specific project.

The Carrying Costs

Carrying costs, often overlooked by first-time flippers, can add up quickly. In Pennsylvania, these costs include property taxes, which can range from 1% to 2% of the property's assessed value annually, homeowners insurance, utilities, and general maintenance. Depending on how long you hold the property, these expenses can significantly impact your overall budget. For example, if you hold a property for six months, you could spend several thousand dollars on these carrying costs alone.

Closing, Marketing, & Sales Costs

When it’s time to sell, you’ll need to factor in closing, marketing, and sales costs. Real estate agent commissions typically range from 5% to 6% of the selling price, and you may also incur additional fees such as title transfer fees, legal fees, and marketing expenses to ensure the property is sold quickly. In total, these costs can account for 8% to 10% of the final selling price, making it crucial to budget accordingly to ensure a profitable flip.

Understanding these costs and planning your budget meticulously is key for those learning how to invest in real estate in Pennsylvania. By managing your expenses carefully, you can maximize your returns and ensure a profitable investment.

Read Also: How To Flip Houses With No Money: Top 10 Expert Strategies

How To Flip A House In Pennsylvania With No Money?

Don’t have any money to flip your house? No problem at all! Here are some strategies and funding sources you should consider with no money down:

• Private Money Lenders: Private money lenders will sometimes fund 80% - 100% of the deal. It all depends on the comfortability with you as the sponsor.
• Hard Money Lenders: Hard money lenders are similar to private money lenders with one distinct caveat: they are slightly more expensive.
• Wholesaling: Though not technically a flip, wholesaling is a great strategy for investors with no money. Instead of buying a property, wholesaling involves a contract between the owner of a home and the investor. What you’ll do is find a property, put it under contract, and then assign the contract over to a new buyer for a small fee.
• Crowdfunding: Crowdfunding entails pooling money together with peers and other investors. This is a great option if you want to be the operator, but don’t have any money to invest.

What Is The Best Place To Flip Houses In Pennsylvania?

Choosing the right location is crucial for a successful house-flipping venture in Pennsylvania. The state offers a diverse range of markets, from bustling urban centers to rapidly growing suburban areas, making it an attractive destination for real estate investors. Here are five of the best cities in Pennsylvania for flipping houses, based on property price trends, population growth, and local economic conditions.

• Philadelphia: Philadelphia, the largest city in Pennsylvania, continues to be a hot spot for house flippers. The city’s real estate market has seen steady growth, with home values increasing by approximately 7% over the past year. Philadelphia’s diverse neighborhoods, ranging from historic districts to up-and-coming areas, provide a wide range of opportunities for investors. The city's robust economy and vibrant culture make it a prime location for flipping houses.
• Pittsburgh: Pittsburgh has experienced significant revitalization in recent years, transforming from an industrial hub to a center for technology and education. Home values in Pittsburgh have risen by 6% over the past year, and the city's affordable real estate market makes it an attractive option for flippers. With a strong job market and increasing demand for housing, Pittsburgh offers great potential for profitable flips.
• Allentown: Allentown is one of the fastest-growing cities in Pennsylvania, with a population increase of over 5% in the last decade. The city’s real estate market is also on the rise, with home values increasing by around 8% in the past year. Allentown’s affordable housing market and growing economy make it a favorable location for house flipping, particularly for those looking to invest in a city with strong future growth potential.
• Harrisburg: Harrisburg, the state capital, offers a stable and affordable real estate market, making it an ideal location for first-time flippers. Home values in Harrisburg have increased by approximately 5% over the past year, and the city's strong rental market provides additional opportunities for investors. With its central location and growing economy, Harrisburg is a solid choice for those looking to flip houses in Pennsylvania.
• Reading: Reading has seen a significant resurgence in its real estate market, with home values increasing by around 7% over the past year. The city’s affordable housing market and proximity to major metropolitan areas like Philadelphia make it an attractive option for investors. Reading’s ongoing economic development and population growth further enhance its appeal as a prime location for house flipping in Pennsylvania.

These cities offer a mix of affordability, growth potential, and economic stability, making them some of the best places to flip houses in Pennsylvania. Conducting thorough market research and understanding the local real estate dynamics of each city will help ensure a successful house-flipping venture.

With this in mind, we invite you to join our FREE training on house flipping in Pennsylvania. We'll guide you through the ins and outs of finding the perfect property, performing the right renovations, and, ultimately, flipping for a profit. Don't miss out on the chance to turn California's real estate opportunities into your financial success story. Sign up for our free training today!

Read Also: 17 Best Cities To Wholesale Real Estate [UPDATED 2024]

Is It Hard To Flip Houses In Pennsylvania?

Flipping houses in Pennsylvania can be challenging, but it is by no means impossible. The state's diverse real estate market requires a solid understanding of both urban and rural areas, as well as the specific demands of each market. In major cities like Philadelphia and Pittsburgh, competition can be fierce, and finding undervalued properties may require extensive research and networking. Additionally, renovation costs can vary widely depending on the location and condition of the property, making it essential for investors to accurately budget for repairs and upgrades.

However, Pennsylvania also offers opportunities that make house flipping accessible for determined investors. The state’s relatively low property prices, compared to other parts of the country, provide a lower barrier to entry for those looking to start flipping houses. Furthermore, Pennsylvania’s strong rental market and steady home value appreciation rates—around 6% to 7% annually in key cities—can lead to profitable flips if done correctly. Success in flipping houses in Pennsylvania largely depends on thorough market analysis, effective budgeting, and a well-planned renovation strategy.

Final Thoughts On Flipping Homes In Pennsylvania

Flipping houses is a fun and lucrative investment strategy. Pennsylvania, specifically, has a lot to offer investors when it comes to attractively priced houses, engaging residents, and desirable neighborhoods.

Do your research, learn from your mentor, engage in open dialogue with local brokers, and analyze every deal that comes across your desk. You might not believe it, but before you know it, you’ll be flipping multiple houses a year generating thousands of dollars in income.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.