Looking for your first—or next—real estate flip? The secret to profitable house flipping lies in finding houses to flip that are undervalued, distressed, or simply off the radar.
In today’s competitive market, smart flippers don’t rely on luck—they use strategy, tools, and proven tactics. This guide walks you through the best methods for sourcing hidden property gems, from distressed property searches to advanced real estate sourcing tools.
🔑 Why Finding the Right Property Is Everything
Your profit is made when you buy, not when you sell. Overpaying for a property leaves little room for profit—even with a great renovation. That’s why mastering the art of finding undervalued homes is the single most important skill in house flipping.
🔍 Where to Look: 5 Proven Ways to Find Houses to Flip
1. 🚧 Distressed Property Search
Distressed homes often signal motivated sellers. Look for:
- Overgrown lawns
- Boarded windows
- Notices taped to the front door
- Obvious neglect
Tools:
- DealMachine: Drive for dollars + direct mail
- Google Street View for remote scouting
Tip: Drive around older neighborhoods—many distressed homes won’t be listed yet.
. 🏚️ Foreclosure Deals
Foreclosed properties are often priced below market value. Banks are usually eager to sell and recoup their losses.
Where to search:
Pros: Discounted pricing
Cons: May have liens or legal complications
Tip: Check local courthouse postings and subscribe to county auction alerts.
3. 🕵️ Off-Market Homes
Off-market deals = low competition and higher profit margins. These properties are never listed publicly.
How to find them:
- Send mail to absentee owners (use county tax records)
- Use platforms like PropStream or REIPro
- Connect with local wholesalers
- Post ads on Craigslist and Facebook Marketplace
Pro Tip: Skip the MLS—some of the best flips never make it there.
4. 🧾 Property Auctions
Auctions can offer steep discounts—but they require fast action and good research.
Where to go:
- Local courthouse steps
- Online: Auction.com, Hubzu
Tips for success:
- Research the property history (title, liens, etc.)
- Visit the property, if possible
- Stick to your max bid
Caution: Some auction properties are sold as-is with no inspection rights.
5. 🧰 Real Estate Sourcing Tools & Platforms
| Tool/Platform | Key Features | Best For |
|---|---|---|
| Zillow Foreclosures | Bank-owned and pre-foreclosure listings | Beginners exploring neighborhoods |
| PropStream | Owner data, comps, and lead filtering | Pro investors & off-market hunting |
| DealMachine | Driving for dollars + mailing tools | Targeting distressed properties |
| Auction.com | Real-time auction access | Foreclosure and REO buyers |
| Craigslist & FB | FSBO (For Sale By Owner) listings | Low-cost off-market sourcing |
📊 How to Evaluate If a Property Is Worth Flipping
Even cheap houses can be bad deals. Use this formula:
Maximum Purchase Price = ARV (After Repair Value) – Estimated Costs
What to Consider:
- Repair Costs: Get estimates or bring a contractor
- Comps: Check nearby sales within ½ mile
- Holding Costs: Taxes, insurance, utilities, and loan interest
- Exit Strategy: Can you sell quickly? What if the market shifts?
🧑🤝🧑 Bonus Tip: Build a “Bird Dog” Network
A bird dog finds deals for you—for a small fee.
Great bird dogs can be:
- Postal workers
- Handymen
- Landscapers
- Real estate agents
Why it works: You get first dibs on overlooked homes while they earn extra income. Everyone wins.
🏡 Real-Life Flip Success Story
Ashley, a beginner from Texas, used PropStream to target out-of-state property owners. She mailed a handwritten letter to a woman who inherited a vacant home.
The result:
- Purchase price: $92,000
- Rehab costs: $23,000
- Sale price: $165,000
- Profit: $35,000
Lesson: With the right sourcing strategy, you don’t need luck—just hustle and a system.
❓ FAQs: Finding Houses to Flip
Q1: How can beginners start finding flip-worthy homes?
Drive for dollars, look on Zillow, or visit local foreclosure auctions. Start small and focus on learning your local market.
Q2: Are foreclosures risky?
They can be. Some come with title issues or unknown damage. Always research thoroughly and inspect if possible.
Q3: What’s the cheapest way to find off-market deals?
Direct mail using public tax records. You can also knock on doors or ask around in local investor meetups.
Q4: Can I flip houses without the MLS?
Absolutely. Many profitable flips are off-market purchases.
Q5: What software helps with sourcing deals?
Top tools: PropStream, REIPro, DealMachine, Auction.com, and BatchLeads.
Q6: What red flags should I watch for?
- Structural damage
- Foundation issues
- Bad neighborhoods
- Mold or fire damage
Q7: How many properties should I analyze before buying one?
At least 20–30. That’s how you sharpen your instincts and spot true deals.