House flippers are getting out of control. From shoddy handy work to outrageous resell prices, they’re contributing to the rough housing market, though they’re only a small part of a much larger housing affordability crisis.
What is house flipping?
House flipping is when a person (or company) buys a house, not with the intention of living in it long-term, but to resell it relatively quickly and at a profit.
House flipping is often used as an investing strategy. A house gets bought up for relatively cheap (usually because it’s a fixer-upper or was in foreclosure), gets quickly remodeled, and sold for a profit as a turnkey home.
About 7.2 percent of homes bought in the third quarter of 2024 were flipped, The Motley Fool reported. The average flip gets a 28.7 percent return on investment and about a $70,250 gross profit. That’s more than the average household income in the United States.
While house flipping can be profitable, it carries financial risks like unexpected renovation costs (which some flippers don’t address or try to cover up), a bad seller’s market, and long sales times that leave your money wrapped up in the house.
So, while some flippers make nice profits, others can end up losing money.
The problem with house flipping
In a viral video with more than 3.2 million views, home inspector AJ (@inspector_aj) shared the shocking things he found in a recently flipped home.
It doesn’t seem like this home will be passing inspection anytime soon.
“These flipped houses are getting ridiculous, man,” AJ said.
As he went around doing his inspection, AJ found a litany of things that were not only not up to code but were just plain sloppy, including:
- A dishwasher that didn’t open all the way
- Cracked tiles
- Lazy finishings (with missing tile pieces)
- Kitchen and bathroom cabinets that can’t open properly
- Two wobbly toilets
- A doorknob on the front door that wasn’t fully installed
- Unsafe stairs with visible nails
- An ill-fitted bathtub with gaps all around (hello mold)
“These ‘flips’ are getting out of hand,” AJ said.
@inspector_aj These “flips” are getting out of hand.
♬ original sound – The Home Inspector, CMI®
Commenters roast the house
“And they want 700,000 for this,” the top comment read.
“Flipped houses are just landlord specials,” a person so aptly pointed out.
“This is why it’s important to have an inspector. I would have never thought to look at any of that viewing a house,” another wrote.
“You lost me as soon as the dishwasher wouldn’t open all the way,” a commenter added.
The Daily Dot reached out to AJ for comment via email and Instagram direct message.
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