House Flipping, Real Estate

Exploring House Flipping As a New Career — Part 1: The Basics

Exploring this new career path.

Image courtesy of Midjourney AI, via the prompt “colorful illustration of a cat standing proudly in front of his newly-constructed modern home — ar 2:1 — s 250 — v 6.0”. Note: While I leverage AI for artwork, as I really love playing with Midjourney, I never use AI in my writing.

I’ve been working on transitioning out of my role as a crypto developer. With the NFT market basically dead (as compared to how it was in 2021 and 2022), it’s time I move on. I may well stay a developer in some fashion. (Indeed, I’m still helping a few teams with various tech projects.) But I’m also exploring other options, and one of them is house flipping.

Boiled down to it’s most basic, house flipping is this:

• You buy a home;
• You fix it up;
• You sell the home for more.

Three simple steps, right? And yet there’s so much more to it.

I’m sure no one cares about this, but I wanted to document what I’m doing and share any insights I learn along the way.

70% ARV — Renovation

One of the first things you learn about home flipping after digging into all of the literature available on the topic is the age-old “70% ARV minus renovation” formula. This formula is meant to provide guidance to the flipper on how much to pay for the target home.