How to Find Fix-and-Flip Properties That Still Work After Repairs
Good fix-and-flip properties come from bank-owned and distressed sales, wholesalers, local agents and off-market owners. The right one is the house where the after-repair value, minus what you pay, the rehab and the holding costs, still leaves a margin you're happy with.
Where do flippers find properties?
Flippers find properties in five places:
| Source | What you get | What to watch |
|---|---|---|
| Bank-owned (REO) sales | Steady supply, motivated sellers, a set process | As-is condition; check title and occupancy |
| Foreclosure sales | Earlier access, sometimes lower prices | Little information, often no inside viewing |
| Wholesalers | Deals found for you | The wholesaler's numbers aren't yours; redo them |
| Local agents | On- and off-market homes | Agents get many buyers; be quick and clear |
| Owners directly | Off-market, negotiable | Slow; needs outreach and patience |
On Vihara, bank-owned and distressed properties show the starting price next to the property's estimate, so you can screen a deal in seconds. Find a fix-and-flip deal.
How do you run the numbers on a flip?
Start from the end. After-repair value (ARV) is what the house should sell for once the work is done, read from recent sales of similar, renovated homes nearby. Then take away:
- what you pay for the house,
- the rehab budget, with a contingency,
- holding costs while you work and sell (taxes, insurance, utilities, interest),
- the cost of selling.
What is left is your margin. If it isn't enough for the risk, walk away. A common rule of thumb is to pay no more than about 70% of ARV minus repairs. It is a screen, not a guarantee.
How do I estimate rehab on a house I can't fully see?
Price the worst case. Use the photos, the outside, the age of the roof and systems where it is recorded, and a contractor's walk-through if you can get one. Add a contingency for what you can't see. Most flips that go wrong were priced for the best room in the house.
Are bank-owned homes good flips?
Often. Banks sell as-is and want a clean, quick sale, which suits a buyer ready to take on repairs. The deal is in the spread, so check the comparables yourself.
How do flippers pay for a property?
Many use cash or short-term investor loans, because speed helps. Financing is available through Vihara's financing partners. Talk to a Vihara advisor, at no cost, about the terms of a specific property.
Frequently asked questions
What is a good fix-and-flip property?
One where the after-repair value minus purchase price, rehab, holding and selling costs still leaves your target margin.
What is ARV?
After-repair value: what the house should sell for after the renovation, based on recent sales of similar renovated homes nearby.
Where can I find fix-and-flip properties near me?
Bank-owned and foreclosure sales, wholesalers, local agents and owners. Vihara brings bank-owned and distressed homes together with the starting price and an estimate on each.
Is the 70% rule reliable?
It's a quick screen. Always check it against real comparables and a real rehab budget.
Sources
Trisha co-founded Vihara in 2022 to bring bank-owned and distressed property auctions online. Before Vihara, Trisha was a product manager at Abbott Laboratories and Hill Physicians Medical Group, and holds an MS in Public Health from the University of Pennsylvania.
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