Done the right way, a house flip can be a great investment and incredibly profitable. In a short amount of time, you can make smart renovations and sell the house for much more than you paid for it. But a house flip can just as easily go the opposite direction if it's done the wrong way.

Is flipping Still Profitable?

While house-flipping activity declined during 2020's third quarter, profits soared to their highest level in 20 years, reports ATTOM Data Solutions, and the median price of a flipped home was $240,000 during that time. Meanwhile, the gross profit on the average flip was $73,766 during last year's third quarter.

Is it bad to buy a flip?

There's nothing wrong with buying a flipped home especially if it has all the good features that you ever dreamed of and you can take a mortgage to buy it. A flipped home is just a renovated and aesthetically-improved version of a seemingly distressed property.