House flipping has seen a rise in popularity in 2024 with this year’s first quarter having almost 68,000 flipped homes. The main reason why the industry is trending and Arizona house flippers are attracted to the industry is from the high-profit margins one can obtain from purchasing an undervalued property, renovating it and selling it for a higher price. Although you don’t need a real estate license to flip houses, it made me more knowledgeable in the industry, I saved money on brokerage fees and it gave me access to online property tools like MLS. After my first flip, I found a passion for helping others with their most valuable asset: their home. I started the home equity and service company HomeLyfe in 2023 as a tool to assist homeowners and landlords in protecting their properties and keeping them in great condition.


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For those who want to get into the industry as an investment or as a side hobby, understanding how real estate works and what should be renovated is crucial to master house flipping. Here are a few things Arizona house flippers should know before getting into the industry, along with some tips from my experience.

Understanding the Real Estate Market

The first thing is to know the basics of real estate and how to look for potential properties to flip. This includes seeing if the market is geared more towards buyers or sellers. In a buyer’s market, there is more inventory or properties available which could lead to lower prices on homes. For house flippers, this is what we want the market to look like to ensure the best deal possible. In a seller’s market, there will be limited homes priced at higher rates that might not be worth the investment. This is a good example of supply and demand.

Considering things like the property’s location can also help when you’re purchasing a house or ready to sell a flipped house. Researching and seeing what neighborhoods and areas are trending can result in a quicker sale. Trending areas can include hotspots for families, excellent school ratings, restaurants or shopping outlets nearby, or any popular work locations close to neighborhoods.

Keeping up with any new real estate data nationally and locally will help house flippers stay in the know, including what’s happening in the economy, interest rates or other outside factors can be an indicator of whether or not it’s a good time to purchase a home.

Renovating Musts: Exterior and Foundation

There are certain parts of the home that new homeowners are looking for to provide the best return on their investment. The first things that can come to mind are renovations to the kitchen, bathrooms, lighting or flooring. While house flippers should update the interior, especially if there’s damage, the area that house flippers miss and is arguably one of the most crucial to renovate is the house’s exterior. First impressions or “curb appeal” matters, and the exterior will be the first thing a potential homebuyer sees whether it’s online or in-person. Freshening up the property with new paint, adding landscaping or replacing an old front door can make a good first impression on the homebuyer and show that the house has been updated. It’s also important for house flippers to establish if the entire structure of the home is safe and stable before a new homeowner moves in, starting with the roof.

When I started flipping properties, I noticed that older roofs are not only an eyesore to the potential buyer but indicate that the roof system may be weak and not functioning properly. Have a certified roof inspector come out to the property to establish any repairs, leaks or other issues with the roof, attic or the house’s gutters. Depending on how old the home’s roof is and what climate it’s in, some roof inspectors might recommend a roof replacement. A Roof replacement will cost thousands of dollars and affect the overall profit you’ll make when you sell a flipped house. If you don’t want to spend a huge portion of your renovation budget on a roof replacement, using a roof rejuvenation product on an old or damaged roof can extend its life and make it durable from any future weather damage. Trimming any trees that hang near the roof can also prevent additional damage to the home.

Updating other structural components inside the house like plumbing, HVAC and electrical systems can also increase the property’s value so the potential homeowner won’t need to repair or replace them.

Extra Tips

From what Idiscovered in the house-flipping industry, success depends on keen market knowledge, cost management, and timing. A critical metric in this process is the capitalization rate (cap rate)—the ratio of a property’s net operating income to its purchase price or current market value. While cap rates are more commonly associated with rental properties, they can inform house flippers of potential income if the property were rented. Flippers prioritize the after-repair value (ARV) and cost-to-value ratios but understanding cap rates helps assess market trends and gauge investment viability in case flipping isn’t immediately profitable.

The market for home buying and selling will continue to fluctuate over time, so make sure to do your research and see if it’s a good time to purchase and flip a house.


Author: Tim Orscheln is the founder and CEO of the equity maintenance and roofing service HomeLyfe. Through the property and real estate industry, Orscheln found a passion for helping others with their most valuable asset: their home. Orscheln created HomeLyfe as a tool to assist homeowners in protecting their property and offering the best quality products and affordable services. For more information, visit https://www.homelyfe.net/.