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How to flip a house with no money toward purchase or rehab
It takes two things: a house bought far enough below its after-repair value, and a lender that funds 100% of the purchase and the rehab.
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Estimate only. Loan amount is the lower of 100% of purchase plus rehab or 70% of the sale price when finished (after-repair value). Minimum loan $150,000. Business-purpose loans on investment property.
The honest answer
You can flip a house without paying for the purchase or the rehab yourself. You still need to plan for the other costs of a flip, such as closing costs, insurance, property taxes and utilities while you own the house.
Six steps
- Find the after-repair value. Look at what renovated houses of the same size have sold for nearby. See what ARV is.
- Price the rehab. Get a contractor's bid for the full scope of work.
- Apply the 70% rule. Take 70% of the after-repair value and subtract the rehab budget. That is your highest offer.
- Get your terms. Enter the three numbers in the terms box to confirm the deal is fully funded, then send it to us.
- Close and renovate. We close in 5 days.
- Sell. Pay off the loan and keep the profit.
The math on a real example
| Deal | Amount |
|---|---|
| After-repair value | $320,000 |
| 70% of after-repair value | $224,000 |
| Rehab budget | $55,000 |
| Highest purchase price for 100% funding | $169,000 |
Offer $169,000 or less on this house and a 100% lender covers the whole purchase and the whole $55,000 rehab. The 70% rule calculator gives you this number for any house.
Where we fit
We fund 100% of the purchase and the rehab on Houston-area flips, up to 70% of the after-repair value, on loans from $150,000. Read more about no money down fix and flip loans.
Questions investors ask
Straight answers about how to flip a house with no money.
Can you flip a house with no money?
You can flip without paying for the purchase or rehab yourself when you buy at or under 70% of the after-repair value minus the rehab budget and use a lender that funds 100% of both. Plan for other costs such as closing and holding costs.
What is the 70% rule?
Pay no more than 70% of the after-repair value minus the rehab budget.
What is after-repair value?
After-repair value, or ARV, is what the house should sell for once the rehab is finished. It is usually based on recent sales of renovated houses nearby.
What is the smallest loan you make?
Loans start at $150,000.
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