Real estate is one of the best ways to invest your hard-earned money. But from all the real estate trends out there, flipping houses might just be the wisest type of investment. But why is that? House flipping is very profitable. The average profit on a flip in 2021 was $73,766. That statement alone is enough to get people in on the action. And the profits are rising year on year.

Another thing to point out is that house prices are expected to rise in 2022. So by purchasing houses early on for flipping, you might be banking yourself more money. Since the time to flip hoses is now, is this trend a wise investment come 2022? All the data points to the answer being yes. However, allow us to elaborate further on these claims. To do that, here is a short article for you.

The Good Side Of Flipping Houses As A Form Of Investment


Like with anything in life, there are good things and bad things. While it’s natural to assume that to be the case with this real estate trend, are you even familiar with the good and bad things regarding flipping houses? If not, we’ll give you the rundown of both. But for now, let’s look at the good things.

Ability To Make Decent Returns

In real estate, it’s all about maximizing your ROI (return of investment). The whole point of house flipping is to buy a property, remodel it, repair it, and sell it for profit. If we take the opening statement of our guide, the average house flip bagged investors $73,766. Those are pretty impressive numbers. But not every house will land you those numbers.

To achieve maximum ROI, you need to be good at it. You need to know how to scout properties, how to identify value in properties, and how to remodel and repair for the cheapest way possible. All in all, you can make decent returns with house flipping. If you’re good at it, you can make seriously impressive numbers.

It Can Be A Side Thing


Everyone looks at ways to maximize earnings. We are living in troubled times where everyone needs more money. So naturally, people look at side hustling to help fill the void. From all the hustles out there, there isn’t a better one than real estate. And in real estate, there isn’t a better thing to do on the side than to flip houses.

The thing with house flipping is that you don’t even need to focus that much on it. You can put zero effort, or you can put in all the effort. It all depends on you and how much time and money you want to put into the house. The more you invest your time and money, the bigger the profits.

But that doesn’t mean you can’t purchase a property, do very little work, and bag a few thousand dollars. Many house flippers do exactly that. So another good thing about house flipping is that you can do it full-time or part-time.

It Can Be A Rewarding Job

If we look past the impressive returns house flippers do on average, can it get more rewarding than that? Yes, it can. Most house flippers are only in it for the money. But what nearly everyone experiences is a different type of reward once they fully rehab a home.

When you fully renovate an old home, you’re not only getting the satisfaction of a job well done, but you’re also giving the home a new lease on life. While this might sound like a cliché, it is absolutely true. You might be in it for the money, but you’re getting the satisfaction of knowing that a family can move in and live a new life. House flippers are also passive contributing to improving the quality of life in the neighborhoods where they flip the houses. So the more you do it, the more inner satisfaction you’re getting.

The Bad Side Of Flipping Houses As A Form Of Investment


While everyone looks at the impressive numbers and thinks about giving house flipping a try, not all is rosy in this sunshine land. So it’s only natural that we tell you about the bad side of this niche form of investing.

Not Every House Will Sell

Even if real estate is on the rise and house prices are skyrocketing, it doesn’t mean that every flip will bag you the returns you want. You can actually lose a lot of money if you don’t do it right.

All the best house flippers know that there is a level of unpredictable risk associated with this form of investment. Since the best way to purchase a home on the cheap is through auctions and foreclosures, you never know what you’re getting into until you buy the house.

So if you buy a house that, upon further inspections, presents you with unexpected expenses, then you’re going to lose money. As to how much money you can lose, no one can tell you that. You might find out that the house is moldy, has foundation issues, or the plumbing needs a whole revamp.

In that case, expect to lose money instead of making it.

Difficult To Start

The thing with house flipping is that you need money to play the game. As such, many struggle at the beginning. What most rookies do is take out a loan and repay it once they flip the house. But you also need to save up plenty of money to cover bills and unexpected expenses. As such, there is a steep entry to this particular niche type of investment.


If you do it right and do the research with every property you purchase, then house flipping can indeed be a wise form of investment. There is always money in real estate, and the fact prices are going up only works in your favor. But don’t think that every property will be worth flipping. As such, do the sound thing and never skip due diligence.

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