ooking for your first (or next) real estate deal?
The secret to successful house flipping lies in finding houses to flip that are undervalued, overlooked, or hidden in plain sight.
But with rising home prices and stiff competition, how do experienced flippers still score great deals?
In this guide, we’ll walk you through proven strategies, tools, and insider tips to help you source undervalued properties—without wasting months chasing dead leads.
🔎 Why Finding the Right Property Matters
House flipping isn’t just about cosmetic upgrades—it’s about buying smart. Your profit is made when you buy, not when you sell.
Overpay for a property and no amount of renovation magic will save your bottom line.
That’s why learning how to find undervalued homes is arguably the most important skill in real estate flipping.
🧭 Where to Look: Proven Methods to Find Flip-Worthy Properties
1. Distressed Property Search
Look for properties with signs of neglect: peeling paint, overgrown lawns, boarded windows. These homes often belong to overwhelmed owners who might be open to selling fast.
2. Foreclosure Deals
Foreclosed homes can be goldmines for house flippers, especially if the bank is motivated to sell quickly.
- Check HUD homes, bank-owned (REO) listings, and pre-foreclosure notices.
- Use websites like Auction.com or Foreclosure.com to monitor upcoming deals.
Pros: Discounted prices, flexible timelines
Cons: Limited access pre-purchase, potential liens
3. Off-Market Homes
Some of the best flips never hit the MLS (Multiple Listing Service). These off-market homes are often sold through word of mouth, direct mail, or investor networks.
How to find them:
- Send postcards to absentee owners.
- Use tools like PropStream or REIPro for owner contact info.
- Partner with wholesalers who specialize in finding hidden deals.
4. Property Auctions
Property auctions offer deeply discounted homes—but you need to move quickly.
Tips for success:
- Attend local courthouse auctions.
- Research title reports before bidding.
- Set a hard budget and stick to it—auctions move fast.
5. Real Estate Sourcing Tools & Platforms
| Tool/Platform | Key Feature | Best For |
|---|---|---|
| Zillow Foreclosures | Foreclosure & pre-foreclosure listings | Beginners seeking leads |
| PropStream | Owner data, off-market leads | Investors looking to scale |
| DealMachine | Driving for dollars + mailers | Targeting distressed properties |
| Auction.com | Online auction access | Fast bids on REOs and bank-owned |
| Craigslist & FB Marketplace | FSBO (For Sale By Owner) finds | Low-competition, direct deals |
🧠 Tips for Evaluating Flip-Worthy Deals
Even if a house looks cheap, it may not be a good flip. Use this simple formula:
- Repair costs: Get quotes or bring a contractor along.
- Neighborhood comps: Are similar homes selling quickly?
- Holding costs: Taxes, utilities, and loan interest add up.
- Exit strategy: Can you sell or rent if the market shifts?
🧰 Bonus Tip: Build a Bird Dog Network
A bird dog is someone who finds potential deals and brings them to you for a fee.
This could be:
- A postal worker noticing empty homes
- A local handyman
- A real estate agent who understands investor needs
📌 Real-Life Example
Meet Ashley, a beginner flipper from Texas. She found her first deal by targeting out-of-state owners through PropStream and sending a handwritten letter. The owner inherited a vacant home and was overwhelmed.
Ashley closed the deal for $92,000, spent $23,000 on rehab, and sold it 3 months later for $165,000—earning a $35K profit.
The lesson? You don’t need luck—just a smart sourcing strategy.
❓ FAQs About Finding Houses to Flip
1. How do I start finding houses to flip with no experience?
Begin by driving for dollars, attending local auctions, and using free tools like Zillow or Realtor.com. Focus on learning your market.
2. Are foreclosure homes good for flipping?
Yes, they’re often priced below market value, but they can come with risks like hidden damage or title issues. Do your homework.
3. What’s the cheapest way to find off-market homes?
Direct mail campaigns and door knocking are cost-effective. Use tax records to find absentee or delinquent property owners.
4. Can I flip houses without using the MLS?
Absolutely. Many flippers prefer off-market deals to avoid competition and agent fees.
5. Which software helps with finding houses to flip?
Top options include PropStream, REIPro, DealMachine, and BatchLeads. These offer data-rich property insights and owner contacts.
6. What red flags should I avoid when looking for properties?
Foundation cracks, mold, roof issues, and bad neighborhoods. Always inspect before buying.
7. How many deals should I analyze before buying?
At least 20–30. Not every deal is worth your time or money. The more you practice, the sharper your instincts get.