According to National Mortgage Professional, the art of house flipping surged in 2024, with nearly 68,000 homes renovated in the first quarter alone – a 24 percent increase compared to the previous year. This booming trend has captivated entrepreneurs eager to profit from transforming properties.
However, successful flipping requires more than enthusiasm. Phoenix-based entrepreneur Tim Orscheln explained the process of getting into the house-flipping market. Inspired by his upbringing, Orscheln’s journey began in 2018.
“My mother always told me, ‘storage is king,’” he said. Growing up, he learned the value of efficient home design and exterior maintenance skills from his parents. “That small-town country boy upbringing gave me the confidence to start flipping homes successfully.”
Recognizing a passion for helping others with their most valuable asset – their home – Orscheln founded HomeLyfe in 2003. The company specializes in assisting homeowners in maintaining and protecting their properties, starting with roof systems. HomeLyfe is a National Roofing Certification & Inspection Association member and offers an innovative roof rejuvenation product called Gonano. This cutting-edge formula uses nanoparticles to extend roof lifespans by 10 to 15 years.
With rising interest rates and limited inventory, house flippers must be cautious about overspending acquisitions and renovations.
“The biggest challenges for new flippers or landlords is the current appreciation of real estate and the cost of borrowing money,” he said. “If you spend too much on renovating things that don’t add value or are not damaged, you might diminish your return on investment.”
Flippers should also prioritize comprehensive property inspections before purchasing – spending extra on inspection services, especially for critical areas like roofs, HVAC systems, plumbing, and foundations, is essential.
“These are going to be your biggest expenses should something start to fail,” he said, explaining that skipping these steps can lead to costly mistakes that may ultimately cut profits.
One of the most common errors among first-time flippers is focusing on aesthetic upgrades that don’t add value. Instead, Orscheln recommends researching what features are selling well in the area and tailoring renovations accordingly.
“Keep an eye on what properties are selling the fastest in your area you’re looking to flip to see what renovations they might have for inspiration,” he said.
Despite the challenges, Orscheln highlights the potential rewards of house flipping when done strategically. If you can avoid these issues, the most significant upside will be big profits. As the house-flipping market grows, Orscheln’s experience and expertise offer a roadmap for success. To learn more, visit homelyfe.net.
