A 2025 Guide to Flipping Houses in California: 5 Cities to Consider
A step-by-step guide to flipping houses in California. Learn the process, get expert tips, and see five of the best cities in California to flip a house.
If you’re considering flipping houses in California, it’s likely you’re researching what it takes and watching market conditions. You may be asking questions like: Is now a good time to flip a house? Will it be profitable? What challenges might I face?
The California Association of Realtors (CAR) expects buyers and sellers to become more active in the market in 2025, driving up both home sales and prices. Existing, single-family home sales are forecasted to increase by 10.5% from 2024’s projected pace.
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“An increase in homes for sale, along with lower borrowing costs, is expected to entice more buyers and sellers to enter the market in 2025,” CAR President Melanie Barker explains in the report.
“Demand will grow as we start the year with the lowest interest rates in more than two years, particularly for first-time buyers. Meanwhile, would-be home sellers, held back by the “lock-in effect,” will have more flexibility to pursue a home that better suits their needs as mortgage rates continue to decline.”
Daniel Donate, a top real estate agent in Oakland who specializes in California investment properties, says that “flipping houses in the state can be profitable,” it just takes a different strategy than it may have in the past. “You’re probably going to try to be very conservative now,” he says, especially if you are a first-time flipper.
Ready to figure out how to start flipping houses in California? Let’s get into the details of where and how you can become an experienced real estate investor in the Golden State.
DISCLAIMER: This article is meant for educational purposes only and is not intended to be financial or legal advice. If you are considering flipping houses in California, HomeLight always encourages you to reach out to an advisor regarding your own situation.
What is house flipping?
House flippers buy homes, hold them for a couple of months, and then sell them for a profit (that’s the flip part). Typically, they buy distressed properties, such as short sales, foreclosures, or homes that need significant work, fix them up, and sell them for a profit. Sometimes flippers buy and sell homes to wholesalers without making any repairs or updates.
The goal is to buy low and sell for a high profit, covering the home’s initial cost and any improvements.
“I would say the best advice would probably be to start off working with or helping another investor that already has experience so that you can actually learn from them,” says Donate. He also recommends hiring a seasoned real estate agent familiar with house flipping.
Is house flipping profitable in California?
House flipping is most certainly an attractive form of income for many professional real estate investors and side hustlers alike. However, making a profit on a flip isn’t as easy as it looks. It takes research, planning, and effort.
Analyzing the most recent metrics, real estate data firm ATTOM reports that home flipping activity nationwide decreased in the second quarter of 2024, but profits consistently improved.
These transactions accounted for 7.5% of all home sales, equating to one out of every 13 sales. Investors earned a 30.4% profit before expenses on homes sold during the second quarter, the fourth time in five quarters that margins increased.
Donate says that flippers can adjust to any type of housing market to be able to make a profit. “I think there’s always an opportunity, especially right now. You just have to adjust to the current market that there is,” he says.