Real Estate · Project Business

House Flipping

Flipping is not a recurring business, it is a string of one-off projects. You buy a house wrong or right, renovate it on budget or over it, and sell it into a market that may have moved. The profit on a flip can sound large, but it is a thin slice of a big sale price, and one bad deal can erase a whole year. This is a deal business, not a job.

Lumpy project income, not recurringProfit set the day you buyCapital- and carry-intensive~8% margin on the sale price
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01

The Snapshot

Is this worth your attention?

$28k-$76k
Typical profit per flip
after rehab, carry and selling; before overhead
7% to 13%
Owner cash margin (SDE)
share of sales the owner keeps before their own pay
$217k to $493k
Cost to open
the first house, rehab, closing and carry; typical about $283k
163 days
Average purchase to resale
buy, renovate, list, close (2025)
High
Day-to-day difficulty
deal-finding and project management
Low
Absentee potential
each deal needs an operator

Cited sources Typical bands for this kind of business, compiled from the public sources listed under Sources and method; they are a synthesis, not figures copied from any one source. Estimates, not forecasts; a specific business varies with its location, lease, equipment and owner. Last reviewed 2026-10-27. smbnest is a self-assessment tool, not individualized advice.

A fit if you…

  • Can find below-market deals others miss
  • Can scope and control a renovation budget
  • Have or can raise real working capital
  • Are comfortable with lumpy, project-based income
  • Can stay disciplined and walk away from bad deals

Probably not if you…

  • Want steady, recurring monthly income
  • Cannot tolerate a year defined by a few deals
  • Are thin on capital and cannot float a carry
  • Fall in love with houses instead of the numbers
02

Step Inside the Layout

A live look at one tool inside

This is the actual 3D floor from the full model. Drag to explore it. Inside, you configure the space yourself and watch the economics move with every choice.

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Sources and method10 public sources, with the year and a link where the source gives one. The benchmark bands are smbnest's synthesis of these sources, not figures copied from them.

Sources & Method

Figures are compiled from the public sources below; the bands are a synthesis of them, not copies

How these numbers were built: the flipping engine is a project model. Profit per flip is sale price minus purchase price, rehab, holding cost, and selling costs; the year is the sum of those spreads minus staff, deal sourcing, office and admin costs, and the page shows that year as a month’s average. The headline margin is profit over SALE PRICE, which is why it reads around 8 percent even when profit per flip is large; this is lumpy project income, not recurring revenue. The default resale price, the hold and the cash share of purchases come from ATTOM’s 2025 year-end home flipping report; profit per flip and the owner cash flow (SDE) margin come from FlipperForce’s analysis of 25,119 deals; hard-money terms come from FlipperForce, and SBA ineligibility from 13 CFR 120.110; rehab costs come from HomeGuide and HomeAdvisor cost guides, with BLS carpenter wages (SOC 47-2031) as a labor context; establishment context comes from the U.S. Census Bureau (NAICS 531390); and firm entry, exit, and survival come from the Census Business Dynamics Statistics. The opening kit prices the first house, its rehab trade by trade, closing, insurance and carry from pages checked in October 2026. These are starting assumptions; the moment you enter a real deal’s purchase price, rehab budget, carry, and resale comps, your numbers should replace ours.

The resale price and hold come from ATTOM’s 2025 flipping report, and profit per flip and the margin band from FlipperForce’s deal data (25,119 deals); the 7% to 13% band applies that median to a year after overhead and is not a single published figure. The purchase and rehab ratios are planning ranges for disciplined buyers; the median 2025 flip paid about 80% of its resale price.

Government data
U.S. Bureau of Labor Statistics
OEWS: Carpenters (SOC 47-2031), used as a rehab-labor cost proxy
https://www.bls.gov/oes/current/oes472031.htm
U.S. Census Bureau
County Business Patterns: Other Activities Related to Real Estate (NAICS 531390)
https://www.census.gov/programs-surveys/cbp.html
U.S. Small Business Administration
7(a) loan program & size standards
https://www.sba.gov/funding-programs/loans/7a-loans
U.S. Census Bureau
Business Dynamics Statistics: firm entry, exit, and survival
https://www.census.gov/programs-surveys/bds.html
Industry
FlipperForce · 2026
How much house flippers make: median projected profit $45,100, or 13.9% of after-repair value, across 25,119 deals (12.7% in 2026); holding $750 to $1,500 a month, selling 6% to 8%, rehab contingency 10% to 15%
https://www.flipperforce.com/calculating-profit.html
FlipperForce · 2026
Fix-and-flip hard money loans: 9% to 13% interest only, 1.5 to 3 points, 6 to 24 months, about 90% of the purchase and 100% of the rehab, capped at 70% to 75% of after-repair value
https://flipperforce.com/how-to-flip-houses/chapter-3-getting-funding-for-your-flip-projects/fix-and-flip-hard-money-loans-explained
Market & valuation
ATTOM Data Solutions
U.S. Home Flipping Reports: flip volume, gross profit, and margins
https://www.attomdata.com/news/category/home-flipping/
ATTOM · 2026
2025 year-end U.S. home flipping report: 297,045 flips (7.4% of sales), median purchase $259,019, median resale $325,000, gross profit $65,981 (25.5% return, lowest since 2008), 163 days, 37.7% bought with financing
https://www.attomdata.com/news/market-trends/flipping/2025-year-end-home-flipping-report/
HomeGuide · 2026
House remodeling costs by room and system: minor kitchen $5,000 to $20,000, small bathroom $3,000 to $15,000, roof $5,700 to $16,000, HVAC $4,800 to $12,400
https://homeguide.com/costs/house-remodeling-cost
Regulatory
Code of Federal Regulations (Cornell LII)
What businesses are ineligible for SBA business loans: passive businesses owned by developers and landlords, and speculative businesses
https://www.law.cornell.edu/cfr/text/13/120.110

This is just the surface

The full model is the complete, interactive deep-dive, and every business here is built to the same standard: a live economics simulator you tune to your own numbers, an interactive 3D walkthrough, a location scorecard, an owner-fit assessment, a buy-versus-build comparison, and the full breakdown of how it makes money and what quietly kills margin.

Monthly
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YearlyBest price
$199 a year

about $17 a month

The best price: a year to decide, open and run it.

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smbnest is a self-assessment tool. It does not give individualized financial, investment, legal or tax advice. Figures are estimates and benchmarks, not forecasts. Speak with a qualified financial adviser and a licensed attorney before you start, buy, finance or sign anything.