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The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties
Entirely revised and updated, with more than 60,000 first edition copies sold! Learn how to find a great investment property, fix it up, and walk away with a profit.
Are you inspired to leave your 9-to-5 job and start flipping houses? In The Book on Flipping Houses, expert real estate fix-and-flipper J Scott details a step-by-step plan to succeed in your first—or next—house flip. This revised edition of the bestselling book includes new explanations on the ins-and-outs of flipping real estate in any part of the economic cycle, more options on how to finance your flips, and a focus on larger renovation projects not previously discussed.
This no-fluff book contains a detailed flipping blueprint perfect for both the complete newbie and seasoned real estate pro. If you’re looking to build a profitable, efficient house flipping business, let this easy-to-follow book act as your guide!
In this book, you'll discover how
Are you inspired to leave your 9-to-5 job and start flipping houses? In The Book on Flipping Houses, expert real estate fix-and-flipper J Scott details a step-by-step plan to succeed in your first—or next—house flip. This revised edition of the bestselling book includes new explanations on the ins-and-outs of flipping real estate in any part of the economic cycle, more options on how to finance your flips, and a focus on larger renovation projects not previously discussed.
This no-fluff book contains a detailed flipping blueprint perfect for both the complete newbie and seasoned real estate pro. If you’re looking to build a profitable, efficient house flipping business, let this easy-to-follow book act as your guide!
In this book, you'll discover how
Kindle Edition
First published March 22, 2013
638 people are currently reading
2242 people want to read
About the author
J. Scott
7 books42 followersJ Scott is a full-time real estate investor and rehabber currently living in the suburbs of Washington, DC. In 2008, J and his wife decided to leave the 80-hour work weeks behind. They quit their corporate jobs, started a family, and decided to try something new: real estate. Nine years later, they've built a successful business buying, rehabbing and reselling single family homes.
J and his wife have rehabbed over 300 of their own houses for millions of dollars in profits. These days, the team has branched out, now flipping houses in different parts of the country and focusing on larger new-construction projects.
J and his wife have rehabbed over 300 of their own houses for millions of dollars in profits. These days, the team has branched out, now flipping houses in different parts of the country and focusing on larger new-construction projects.
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Displaying 1 - 30 of 49 reviews
November 21, 2017
This book is a good review of how to flip houses. Having never flipped a house and trying to learn more about the process and everything it entails, this a good start to learning as much as possible. Obviously, nothing will ever replace actually flipping a house but this does a good job of laying out the process to be successful. J Scott has flipped hundreds of houses successfully and lays out the blueprint of how to do well.
This will be a more in-depth review of the book and everything it covers.
Scott lays out the exact steps to having a successful flip. It covers the areas of house flipping and concrete steps to make sure the process runs as smoothly as possible.
Types of Financing
1. Conventional Financing - This would entail the typical type of loan from a large bank or government institution (Fannie Mae, Freddie Mac, etc.) These typically have longer duration and lower interest rates. These are used mostly for homeowners and it's harder to get this loan against a rehabbed home.
2. Portfolio/Investor loans - These are usually smaller banks (think your local bank) . They are able to create their own terms and are more willing to loan against real estate. They evaluate deals based on the investment quality and not always against the individual's credit rating (although this is a determinant). Portfolio loans generally have higher interest rates and points (loan costs).
3. Private Investors - These are friends, family, or people with money. Everything is on the table with Private Money.
4. Hard Money Lenders - These types of loans are taken against the hard asset (underlying property) and don't rely at all on the person. Since these loans are usually for people with bad financial situations, the terms are much worse and makes a great deal much harder to come by.
5. Equity Investors - "Partner with cash" You are trading equity in the property for cash. You can split this multiple ways but it really depends on the situation.
The next couple of Chapters cover the Who, What, Where, and How. These questions (and answers) will go towards your overall strategy and should determine
Who are you buying from? You can purchase from owners with and without equity, Banked owned foreclosures (REO), and Auctions. There is no right answer for where to buy from. It depends on what type of property you want and the level of rehab you are willing to commit to.
What type of property to buy? For flips, you are going to be buying distressed properties. There are many reasons for people to sell (financial distress, personal distress, property is in poor condition) and knowing the "why" is very helpful in negotiating. Also, ALWAYS SPECIFY YOUR CRITERIA! This will include characteristics such as property age, property style, construction type, # of bed and bath, etc.
Where to buy? You must determine your "farm area" and know this area like the back of your hand. You should know the price ratios between distressed and retail sales, know the buyers in the area, the real estate supply, and market indicators and trends (populations and employment trends). You should also know the level of finishes in other comparable homes and get a "feel" for locations.
How to Buy? There are multiple ways to find properties. These include the MLS (not as likely), Online/Auction, HUD Properties, wholesaling, Direct Marketing (Pg. 124), and Advertising. These can all be successful but they key is to have a defined target and strategy to find these leads. A combination of the above may be successful in finding a number of deals. Remember, if each flip gets you $25K, you only need to find 4 deals a year to really do well.
The FLIP FORMULA!
Maximum Purchase Price = Sales Price - Rehab Costs - fixed costs - expected profit
Sales Price is the conservative estimate of what I can sell the property for
Fixed costs equal all the costs, fees, and commissions that I can expect to pay during the project
Profit is the minimum amount of money I want to make off the project when it's complete
Rehab costs are the material and labor costs required to rehab the property into resale condition.
Determining sales price - Use CMA, pull "comps" (usually within past 3 months), location/proximity, age and style, size, and condition.
Adjusting your comps - Date of sale, age, condition, living area square footage, bed/bath, garage/ carport, porches, etc. (ex, pg 150).
Determine value of subject property - Use the adjustments to figure out what you should sell the property for.
Calculating Fixed Costs -
1. Purchase costs (Inspection costs, closing costs, and lender fees
2. Holding costs (mortgage payments, property taxes, utilities, and insurance
3. Selling costs (commissions, closing costs, home warranty, termite letter, MLS fees)
Rehab costs are really what are going to make or break the deal. In order to get a good idea of the work needed to be done, you need to make a Statement of Work (SOW). You shouldn't over rehab and your properties should be in similar condition to other newly constructed buildings.
You can group the rehab into three areas: Exterior Components, Interior, and General.
Exterior : Roof, Gutters/ Soffit/ Fascia, Siding, exterior painting, decks/ porches, concrete, garage, landscaping, septic system, and foundation.
Interior: Demo, plumbing, electrical, HVAC, framing, insulation, sheetrock, carpentry, interior painting, cabinets / countertops , flooring.
General: Permits, Mold, Termites, Misc.
Go through each of these and determine the level of finish and cost for everything. Create a schedule of everything that needs to be finished in order. You'll have Immediate concerns, rough work, unfinished work, and finish work.
You have you SOW, your budget, and you put together a rough schedule. Now you need to find team members that are trustworthy. General contractors tend to handle all aspects of the renovation including the schedule, project budget, and all payments. You should try and find a great handyman who can do some of the minor work associated with a rehab.
Contractor paperwork - IRS Form W-9, Independent Contractor Agreement, Scope of Work, Payment Schedule, Insurance & Indemnification agreement, lien waiver.
Managing your rehab - Don't lose days, plan your schedules upfront, prepare for dependencies, know who supplies what, never pay ahead of work that's been completed, visit the job site, fire bad contractors.
Once all the rehab is complete, you should set up the house for showings. You should stage the house and have as much natural light as possible. You want to have the house set up with a lot of vibrant colors that complement the wall colors. If all goes well, you should be able to sell the house very quickly and easily!
This will be a more in-depth review of the book and everything it covers.
Scott lays out the exact steps to having a successful flip. It covers the areas of house flipping and concrete steps to make sure the process runs as smoothly as possible.
Types of Financing
1. Conventional Financing - This would entail the typical type of loan from a large bank or government institution (Fannie Mae, Freddie Mac, etc.) These typically have longer duration and lower interest rates. These are used mostly for homeowners and it's harder to get this loan against a rehabbed home.
2. Portfolio/Investor loans - These are usually smaller banks (think your local bank) . They are able to create their own terms and are more willing to loan against real estate. They evaluate deals based on the investment quality and not always against the individual's credit rating (although this is a determinant). Portfolio loans generally have higher interest rates and points (loan costs).
3. Private Investors - These are friends, family, or people with money. Everything is on the table with Private Money.
4. Hard Money Lenders - These types of loans are taken against the hard asset (underlying property) and don't rely at all on the person. Since these loans are usually for people with bad financial situations, the terms are much worse and makes a great deal much harder to come by.
5. Equity Investors - "Partner with cash" You are trading equity in the property for cash. You can split this multiple ways but it really depends on the situation.
The next couple of Chapters cover the Who, What, Where, and How. These questions (and answers) will go towards your overall strategy and should determine
Who are you buying from? You can purchase from owners with and without equity, Banked owned foreclosures (REO), and Auctions. There is no right answer for where to buy from. It depends on what type of property you want and the level of rehab you are willing to commit to.
What type of property to buy? For flips, you are going to be buying distressed properties. There are many reasons for people to sell (financial distress, personal distress, property is in poor condition) and knowing the "why" is very helpful in negotiating. Also, ALWAYS SPECIFY YOUR CRITERIA! This will include characteristics such as property age, property style, construction type, # of bed and bath, etc.
Where to buy? You must determine your "farm area" and know this area like the back of your hand. You should know the price ratios between distressed and retail sales, know the buyers in the area, the real estate supply, and market indicators and trends (populations and employment trends). You should also know the level of finishes in other comparable homes and get a "feel" for locations.
How to Buy? There are multiple ways to find properties. These include the MLS (not as likely), Online/Auction, HUD Properties, wholesaling, Direct Marketing (Pg. 124), and Advertising. These can all be successful but they key is to have a defined target and strategy to find these leads. A combination of the above may be successful in finding a number of deals. Remember, if each flip gets you $25K, you only need to find 4 deals a year to really do well.
The FLIP FORMULA!
Maximum Purchase Price = Sales Price - Rehab Costs - fixed costs - expected profit
Sales Price is the conservative estimate of what I can sell the property for
Fixed costs equal all the costs, fees, and commissions that I can expect to pay during the project
Profit is the minimum amount of money I want to make off the project when it's complete
Rehab costs are the material and labor costs required to rehab the property into resale condition.
Determining sales price - Use CMA, pull "comps" (usually within past 3 months), location/proximity, age and style, size, and condition.
Adjusting your comps - Date of sale, age, condition, living area square footage, bed/bath, garage/ carport, porches, etc. (ex, pg 150).
Determine value of subject property - Use the adjustments to figure out what you should sell the property for.
Calculating Fixed Costs -
1. Purchase costs (Inspection costs, closing costs, and lender fees
2. Holding costs (mortgage payments, property taxes, utilities, and insurance
3. Selling costs (commissions, closing costs, home warranty, termite letter, MLS fees)
Rehab costs are really what are going to make or break the deal. In order to get a good idea of the work needed to be done, you need to make a Statement of Work (SOW). You shouldn't over rehab and your properties should be in similar condition to other newly constructed buildings.
You can group the rehab into three areas: Exterior Components, Interior, and General.
Exterior : Roof, Gutters/ Soffit/ Fascia, Siding, exterior painting, decks/ porches, concrete, garage, landscaping, septic system, and foundation.
Interior: Demo, plumbing, electrical, HVAC, framing, insulation, sheetrock, carpentry, interior painting, cabinets / countertops , flooring.
General: Permits, Mold, Termites, Misc.
Go through each of these and determine the level of finish and cost for everything. Create a schedule of everything that needs to be finished in order. You'll have Immediate concerns, rough work, unfinished work, and finish work.
You have you SOW, your budget, and you put together a rough schedule. Now you need to find team members that are trustworthy. General contractors tend to handle all aspects of the renovation including the schedule, project budget, and all payments. You should try and find a great handyman who can do some of the minor work associated with a rehab.
Contractor paperwork - IRS Form W-9, Independent Contractor Agreement, Scope of Work, Payment Schedule, Insurance & Indemnification agreement, lien waiver.
Managing your rehab - Don't lose days, plan your schedules upfront, prepare for dependencies, know who supplies what, never pay ahead of work that's been completed, visit the job site, fire bad contractors.
Once all the rehab is complete, you should set up the house for showings. You should stage the house and have as much natural light as possible. You want to have the house set up with a lot of vibrant colors that complement the wall colors. If all goes well, you should be able to sell the house very quickly and easily!
December 5, 2020
For a long time, I would search something like "top real estate investing books" and munch through everything on the list. Though this one was always on a top 10, I hadn't never considered reading it.
Flipping houses sounded like an active job, and I was not looking for one. However, the contents within this book is gold! While the other books talk about how great and profitable real estate investing is, this one actually describes how to do it, step by step. Even if you don't plan to flip houses, please read this book. I finally found answers to these questions:
- How do I know what repairs needed for the house that I'm buying.
- How do I estimate the cost of the needed repairs?
- How do I estimate the price of my house after I fix it up?
- How can I make sure the contractors are not going to scam me?
... and many many more ...
Flipping houses sounded like an active job, and I was not looking for one. However, the contents within this book is gold! While the other books talk about how great and profitable real estate investing is, this one actually describes how to do it, step by step. Even if you don't plan to flip houses, please read this book. I finally found answers to these questions:
- How do I know what repairs needed for the house that I'm buying.
- How do I estimate the cost of the needed repairs?
- How do I estimate the price of my house after I fix it up?
- How can I make sure the contractors are not going to scam me?
... and many many more ...
February 28, 2019
You're going to love* this revised edition... Not only is it updated to reflect the ever-changing nature of housing markets, but it's filled with even more of J. Scott's practical brilliance!
*We're the publisher of this book, so we're biased. But we still love it anyway ;)
*We're the publisher of this book, so we're biased. But we still love it anyway ;)
March 11, 2020
Wow what an insanely helpful book packed full with REAL information. Not just general ideas or hype, but actual, real information. It is safe to say that this book will be instrumental to my success in real estate investing. Thank you so much J Scott!
March 18, 2020
I’m giving this book 3 stars because I’m unsure what constitutes a 4-5 star rating now. Three from now on is going to become the norm for “average reads”.
I read through this book two days prior to visiting my friend who flips houses. Everything in this book was extremely insightful. Especially to someone with no experience in the industry. Things like running comps, finding contractors, and understanding how to create a scope of work are critical to any house flipper.
However, I don’t think everything is practical. Visiting my buddy and gaining hands on experience was critical to my learnings. It opened my eyes to the other arsenal of skills you need to have that a book won’t teach you. These being: relationship building, ability to make gut decisions, and taking action.
I cannot stress how important taking action is. You can read 20 books on real estate, but if you don’t take action it means nothing. It’s better to screw up a few times and get it right down the road then not try at all. In the end it’s good to have a mix of experiential and traditional learning before diving in. This book provides your traditional learning fix.
I read through this book two days prior to visiting my friend who flips houses. Everything in this book was extremely insightful. Especially to someone with no experience in the industry. Things like running comps, finding contractors, and understanding how to create a scope of work are critical to any house flipper.
However, I don’t think everything is practical. Visiting my buddy and gaining hands on experience was critical to my learnings. It opened my eyes to the other arsenal of skills you need to have that a book won’t teach you. These being: relationship building, ability to make gut decisions, and taking action.
I cannot stress how important taking action is. You can read 20 books on real estate, but if you don’t take action it means nothing. It’s better to screw up a few times and get it right down the road then not try at all. In the end it’s good to have a mix of experiential and traditional learning before diving in. This book provides your traditional learning fix.
August 23, 2022
For me, this was unrealistic as far as the numbers were concerned. Maybe it depends on where you are flipping houses. Finding a project that has a renovation estimate of $13,000 is near impossible. It would only cover one item, such as a new roof or fixing the foundation. Try more like $80,000-$100,000; I can relate to those numbers. Here in Texas it seems like every renovation is hard core. I have not found a cosmetic flip yet. Most houses need to be gutted, they need the works: foundation, electric, plumbing, flooring, HVAC, roof, kitchen, bathrooms…I dream of having a light renovation that lasts only 6-8 weeks. Every time I read a low cost or quick timeline I was exasperated. For a first rehab?! How is that even possible? Where does this person live? Maybe I need to move. They also stated they would add a refrigerator that costs $600?! It must be a nasty outdated fridge that nobody wants anymore. The average cost to meet today’s standards is closer to $1200. I like the online links to contracts which are very helpful. The information was good but the numbers stink.
February 27, 2020
An overall decent book that covers the subject of flipping houses in the real estate industry to a relatively fine point. I’m not interested in flipping houses, and mainly bought the book to learn more about rehab in general, and although it provides good information about the total process of rehab, I didn’t find much about the actual tangible process of rehab, and want thing tend to appreciate the value of a property.
However, there are many things in the book that can be used in any method approaching real estate investing. The most important is how to give an estimation of how much will the rehab cost, and around what value will the property go for, it’s basically don’t by analyzing figures of comps around the area of the house.
However, there are many things in the book that can be used in any method approaching real estate investing. The most important is how to give an estimation of how much will the rehab cost, and around what value will the property go for, it’s basically don’t by analyzing figures of comps around the area of the house.
January 14, 2025
უძრავი ქონების სფეროში ვინც არის ან ვინც დაინტერესებულია უშუალოდ ბინების/სახლების გარემონტებით და შემდეგ გადაყიდვით - მათთვის ღირს წასაკითხად. მთავარი პრობლემა წიგნის არის ის, რომ ძალიან კონცენტრირებულია ამერიკულ ბაზარზე და ამერიკული უძრავი ქონების სისტემაზე, შესაბამისად ხშირ შემთხვევაში საქართველოში მცხოვრები, წიგნში მოცემულ უამრავ ინფორმაციას ვერ გამოიყენებს და მისთვის უცხო იქნება.
ამის მიუხედავად ბევრი საჭირო დეტალია წიგნში კარგად ახსნილი, მაგალითად მოლაპარაკებები, რისკების მართვა, მენეჯმენტი, ქონების შეფასება, ფინანსური გათვლები და სხვა. ვისაც ეს თემა აინტერესებს, ამ წიგნის წაკითხვა არ აწყენს.
ამის მიუხედავად ბევრი საჭირო დეტალია წიგნში კარგად ახსნილი, მაგალითად მოლაპარაკებები, რისკების მართვა, მენეჯმენტი, ქონების შეფასება, ფინანსური გათვლები და სხვა. ვისაც ეს თემა აინტერესებს, ამ წიგნის წაკითხვა არ აწყენს.
February 19, 2025
This book is worthy of 5 stars because it tells you everything you need to know about house flipping. After I read it I feel like I know what I’m getting myself into. Lots of real life advice, how-to’s, as well as legitimate examples. The examples weren’t necessarily super helpful to just read a list, but it is really more of a handbook to return to when you need to put into real world use. A few minor grammar mistakes that slipped through the cracks, but I really like the tone J. Scott writes with. Likeable, relatable, and passionate.
December 29, 2019
Detailed, straightforward guide to rehabbing houses. Can be read in one sitting, then used later for reference and refresher. Buying, rehabbing, and selling a house sounds like a lot of work. It's neat to see it laid out step-by-step.
Knocked a single star off because I would love more macro-level details on the life of a rehab investor:
- How many homes do you tend to flip a year?
- Is it mostly 9-5?
- How do you source & negotiate with contractors?
Knocked a single star off because I would love more macro-level details on the life of a rehab investor:
- How many homes do you tend to flip a year?
- Is it mostly 9-5?
- How do you source & negotiate with contractors?
September 14, 2020
I went it to expecting it to be a boring and dull step by step chronicle, and although it was an informative book it was an interesting read. I learned a lot more about the process and other RE related topics. Needless to say it you want a beginners guide to the process of investing in RE, it’s a good place to start before you dive into the bidding war that is fixer uppers,
Opinion of a Las Vegas Real Estate agent.
Opinion of a Las Vegas Real Estate agent.
October 8, 2020
Very thorough book on flipping houses (obviously). He hit every detail and topic from, how/what to look for in properties, running the numbers, steps throughout the rehab, different ways of selling, and the entire closing process. I highly recommend this book for someone interested in flipping to get the entire picture from start to finish! I will be reading the sister book on estimating rehab costs next.
November 21, 2019
Not bad, some good information, nothing earth shattering that you can't learn online or through common sense. What is nice though is the provided "this worked" examples of what he did that works for him and also the whole processes being organized together along with sample documents, budgets, etc.
January 4, 2021
This book was helpful in many ways, but it could have gone more into strategies for deciding which renovations to do on a given property and the pros and cons of these changes. The book was very detailed and helpful in other areas, however, such as locating deals, financing, and working with contractors in particular.
March 16, 2021
a good book for the newbies on rehabbing
I would highly recommend this book for newbie investor who want to understand rehabbing and flipping business. even though my focus was rentals, i learnt a lot from rehabbing where the author goes through a detail analysis on how to estimate for rehabs, manage it and get it done.
I would highly recommend this book for newbie investor who want to understand rehabbing and flipping business. even though my focus was rentals, i learnt a lot from rehabbing where the author goes through a detail analysis on how to estimate for rehabs, manage it and get it done.
June 19, 2021
Not Just For Flips
If you’re buying or selling a home, you will be well served in reading this book. The strategies for buying and selling right make sense whether you’re an investor, a flipper, a wholesaler or this is your primary residence. Full of checklists, advice and actionable tips, it is a darn useful addition to the library.
If you’re buying or selling a home, you will be well served in reading this book. The strategies for buying and selling right make sense whether you’re an investor, a flipper, a wholesaler or this is your primary residence. Full of checklists, advice and actionable tips, it is a darn useful addition to the library.
September 3, 2021
Libro muy enfocado en el tipo de viviendas estadounidenses y en su sistema bancario. No obstante, existen buenas ideas a extraer se este libro, algunas de ellas son: cálculo de márgenes de beneficios, busca de viviendas, priorizar gastos de la reforma y su estructuración. También cabe mencionar la información aportada sobre la importancia de buenos contractors
October 2, 2024
This book was well written and informative. It is a great resource and foundation for any real estate investor. It’s easy to read and understand. It didn’t get 5 stars because it didn’t get into the details as much as I would have liked, although it was still good. I wish it was a bit more in depth.
July 7, 2018
Excellent book
This book is a no-nonsense, step by step guide to flipping properties. I am very impressed by the level of detail and I expect that it will be very helpful in buying properties.
This book is a no-nonsense, step by step guide to flipping properties. I am very impressed by the level of detail and I expect that it will be very helpful in buying properties.
January 3, 2019
This book is very detail in how to buy, rehab, and sell residential properties. This is a topic that I have been considering for some years, but have not really known how. This is a good look at being thorough and successful in flipping houses.
May 16, 2019
Probably the most useful real estate book I have read. A true blueprint on what to do, when to do it, and how it should be done in the area of rehabbing houses. Most books have too much fluff and discuss high level concepts, but this gets into the nitty gritty.
May 19, 2019
Fairly thorough book, though highly specific to house flipping of course. There's a lot you can get from it even if you're not a flipper, as long as you're doing something or other with real estate. Very good reference on renovation and project management.
November 5, 2019
Solid but not extraordinary. A lot of the book is really about just general real estate buying and selling, overlaid with specifics to flipping. Still, a very powerful step by step tool. A good guide and worthy read for investors regardless of if you’re flipping.
February 26, 2022
Great book with real advice and steps to follow to successfully invest in real estate. Gives you actual formulas to use to calculate costs, valuation of potential investments, and other important metrics.
August 18, 2017
Amazing. Detailed. Simply and excellent beginners (and even advance) guide.
October 17, 2017
Good book that covers the process from start to finish very well. I really appreciate Josh putting it together. Minus one star for the ungodly amount of spelling errors.
March 19, 2018
Really cool book that talks you through flipping houses. Seems daunting but doable. Will likely dabble some day but learning as much as I can until that day comes.
May 7, 2018
I can't imagine a possible way that a book on flipping houses has a faster pace and more detailed and in-depth information on this topic. Stuffed with practical advice.
December 26, 2018
Very informative
Good read if your looking to rehab properties. I even signed up to the Bigger pockets website as well. Try it lots of free info and advice
Good read if your looking to rehab properties. I even signed up to the Bigger pockets website as well. Try it lots of free info and advice
February 23, 2019
A thorough and helpful book. I found the content about the order to do which tasks enlightening.
Displaying 1 - 30 of 49 reviews