Buying and flipping real estate is a common way to make money. If you purchase a home at a good price, make some aesthetically-appealing renovations, and sell the house at a higher price than you paid, you can easily make quite a lot of money. However, house flipping is by no means an easy “get rich quick” plan. It takes a lot of work, a lot of investments, and even with a great house you may have a hard time selling the finished product simply due to the fluctuating housing market.

You can look for cheap real estate in your local newspaper, through online listings, or by searching out delinquent mortgages online. The key to flipping real estate is finding a decent, repairable house at a low enough price to be worth your time, effort, and money.

Common sources of cheap real estate include HUD foreclosures, regular foreclosure sales, and short sales. You can also try searching for death notices and divorce settlements, as these tend to precede quick housing sales.

Before you purchase any property, it’s important to know your budget and be aware of the anticipated costs. To do this, you’ll need to evaluate the property to assess how extensive the repairs will be. Then work backwards to compare the after-repair value (ARV) of that property with the estimated costs and repairs you’ll need to put in.

In addition to all the other costs involved in buying, rehabbing, and selling a home, you’ll have to also consider the financing costs. Will you need to take out a loan to complete the purchase? If so, you’ll have to shop around to find the best interest rate on a home loan. If you find a good loan offer or have secured enough capital to make the purchase, and if everything else checks out and fits within your budget, then you’re ready to make an offer to that property’s real estate agent. You can easily get Fix and Flip from market.

In addition to the costs of equipment, labor, and, of course, the property itself, there are numerous other costs to factor in as you decide on a property. The costs associated with owning a property that you haven’t sold are generally referred to as carrying costs. These may include property taxes, condo or association fees, insurance, and utilities like electric, gas, and water services. You’ll also have to pay a realtor for his or her services, which can average around five to ten percent of the sale price of that property.

Remember that the longer you hold a piece of property without successfully flipping it, the more your carrying costs will add up.

Not all homes sell right away. Even an attractive home in a hot area may be on the market for a while, which can add up costs very quickly. You may want to have a backup plan, including renting the property or living there yourself, just in case the sale doesn’t go through. Some real estate experts advise only going through with a purchase if you are willing/able to hold onto the home and live in it or rent it out for at least five years, in case selling it doesn’t go as planned.