5 Costs to Expect When Flipping Houses in Birmingham

5 Costs to Expect When Flipping Houses in Birmingham

Flipping is an exciting opportunity to quickly turn a distressed property into profit and attracts many new real estate investors seeking fast cash. While all too often wide-eyed and inexperienced investors watch television shows, the process appears to be much easier than the harsh reality. Just remember it is never a bad idea to get good advice. Do you have construction experience and the skills to handle any type of structural or system repairs and negotiating deals, all while managing the business side of your investments? In that case, you will save a great deal of money in exchange for your hard work. 

Being an active Birmingham real estate investor that tackles flipping houses requires the financial wherewithal to meet unexpected expenses and the time and patience to bring the project through to fruition. It is essential to add up all of the numbers to ensure the deal is truly within your budget. Here are five costs you can expect when flipping houses in Birmingham.


Inspecting the home and finding the best available property within your budget when flipping houses in Birmingham may be the most critical factor in the investment turning out like a flip or a flop. Estimating the costs and time to complete repairs comes in at a close second in importance. It takes careful management to avoid lost time. You do not want to have one professional waiting for another professional to be completed with their work. If you are inexperienced at repairs, do not attempt to save money by becoming a renovation expert, a plumber, or an electrician on your investment property. Inexperience can lead to mistakes that could devastate your potential profits. 


Because listing homes is their career, professional real estate agents, input and experience are priceless to have a working relationship with as a flipper. You will have to deduct a commission and pay other fees associated with a traditional listing, such as closing from the profits. However, the exposure from the MLS and the websites that feed off of it make the expenses worth it. Listing on the MLS brings your property to the fingertips of buyers worldwide, searching for a home in Birmingham. Additionally, an agent like those at Alabama Real Estate Deals has a vast network of connections that will bring even more attention to your investment property and improve your odds for a fast flip. Let’s face it, working with a real estate agent to help you sell the property is the most likely way to find buyers when flipping houses in Birmingham.


Because the focus of real estate today is online, you must capture the attention of buyers in the first few seconds. When flipping houses in Birmingham, you will defeat your efforts by failing to take full advantage of proven marketing techniques. In addition to placement on the most prominent real estate listing sites, you will want to enlist the services of a professional photographer and drone pilot for a 360-degree virtual tour. Staging utilizes neutral tones in your sections for paint and more permanent finishings, such as countertop and tile selections. Depersonalization in decor selection enhances the ability for potential buyers to visualize their belongings in the space.  

Taxes and Insurance 

Other numbers to add to the expense column are the property taxes and insurance. You should inquire with an agent about vacant home insurance for the property when flipping houses in Birmingham. Naturally, you will be responsible for paying taxes for the property during the time you hold ownership. For loans with less than a twenty percent downpayment, the insurance and taxes are paid in advance and set aside for future use, known as being held in escrow by the lender. As the bills are due, the lender makes the payments.

Holding Costs

Timing is everything in achieving the full profit potential when flipping houses in Birmingham. If your estimate for the time of repairs is off, your cost runs over. It is wise when estimating your budget to keep this possibility in mind. Remember that loan approval for your buyers may take time, as well as the closing process. And if your marketing efforts were less than fruitful, you are now depleting the profits through holding costs. These costs include mortgage payments, utilities, and maintaining the property. There are typically monthly fees associated with the furnishings used to stage properties. 

Whether you are looking for a fixer-upper or turnkey property, Alabama Real Estate Deals can help. At Alabama Real Estate Deals, we have an incredible inventory of Birmingham properties. When you are flipping houses in Birmingham, you need a solid support team. In addition to our expert agents, Alabama Real Estate Deals has a full team of professionals from every walk of the construction and real estate industry on call. Alabama Real Estate Deals is ready to be your dream team! Call Alabama Real Estate Deals at 2058082682 today!

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