Flipping houses can feel like a high-stakes treasure hunt—except the treasure is buried under questionable carpet and outdated wallpaper. To help you strike gold instead of going broke, we’ve put together this guide on what to look for when flipping a house in Ontario.
Whether you’re a first-time flipper or a seasoned pro, these tips will help you spot the winners, dodge the duds, and (hopefully) keep your sanity intact.
1. Location, Location, Profit!
No amount of shiplap or subway tile can save a flip in a bad location. Before you get attached to that “diamond in the rough,” make sure it’s actually in a spot people want to live.
What to Look For:
Up-and-Coming Neighbourhoods: Areas with new businesses, improving schools, or planned developments.
Low Crime Rates: Safety sells.
Comps: Check what similar houses have sold for in the past 6 months.
Red Flag: If properties in the area sit unsold for months, think twice.
2. The Bones—Because Lipstick Won’t Fix a Broken Skeleton
Cosmetic issues are easy fixes; structural problems are budget vampires.
What to Check:
Foundation: Look for cracks wider than a quarter inch—no, they’re not “character.”
Roof: Missing shingles or sagging? Prepare to pay up.
Electrical & Plumbing: Outdated systems can blow your budget fast.
Red Flag: If the house leans more than you after a Friday night, run.
3. Ugly but Lovable: Cosmetic Fixes Only
The best flip candidates are ugly but functional—think bad paint, dated kitchens, and ‘70s shag carpet.
Easy Fixes That Boost Value:
Fresh Paint: Neutral tones like greys and whites work best.
Kitchen & Bath: New hardware, backsplash, and lighting can work wonders.
Flooring: Replace carpet with vinyl plank or hardwood.
Red Flag: If you need to gut the place, crunch those numbers twice.
4. The Layout: No Maze Houses, Please
Open concepts sell. A bunch of tiny, disconnected rooms do not.
What to Check:
Walls: Are they load-bearing or just ugly?
Flow: Does it make sense, or do you need a GPS to find the bathroom?
Natural Light: Dark houses feel small and sad.
Red Flag: Awkward layouts that need major changes might kill your profit.
5. Price Matters—Don’t Marry the Money Pit
Your profit depends on how well you buy, not how much you renovate. Follow the 70% Rule:
Max Purchase Price = (ARV x 70%) - Renovation Costs
Key Costs to Estimate:
Renovation Budget: Include a 10-15% cushion for surprises.
Carrying Costs: Mortgage, utilities, and insurance until you sell.
Closing Costs: Legal fees, agent commissions, and land transfer tax.
Red Flag: If the numbers don’t work, don’t force it—there are plenty of fish in the MLS sea.
6. Permits and Red Tape—The Fun Part
Ontario has some strict building codes, and nothing kills profits like a stop-work order.
Must-Check Items:
Required Permits: Electrical, plumbing, structural changes, and even fences.
Zoning: Make sure your plans are legal.
Previous Work: Ask if past renovations were permitted or if they’re a DIY disaster waiting to happen.
Red Flag: If the seller can't produce permits for major work, budget for surprises.
7. Exit Strategy: Sell or Rent?
Plan how you’ll cash out before you even buy in.
Options:
Fix and Flip: Quick sell for profit.
Fix and Rent: Steady income if the market’s soft.
BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat.
Red Flag: No clear exit strategy = a recipe for holding costs that eat your profits.
Final Thoughts: Your Next Move
Flipping houses can be a profitable venture or a financial horror story—it all depends on knowing what to look for. Stick to these tips, do your homework, and don’t let your emotions make the decisions (save those for when you’re watching home reno shows).
Ready to start your flipping journey? Let’s chat!
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