Foundations
How to Write a House Flipping Business Plan (2026 Template)
Flipping is a business, not a hobby. A simple plan keeps it profitable — and helps you raise money.
June 17, 2026 · 8 min read
A house flipping business plan defines how your business will find, fund, renovate, and sell properties profitably. It should cover your strategy and goals, target market and buy criteria, financing plan, deal-analysis rules (like the 70% rule), a renovation and team plan, and financial projections. Lenders and partners typically expect one before committing capital.
Why you need a plan
A business plan forces you to make the decisions that determine whether you profit before you risk any money: what you'll buy, where, how you'll pay for it, and what numbers a deal must hit. It's also what hard-money lenders and private partners want to see — a clear, written plan signals you'll treat their capital seriously. It doesn't need to be long; it needs to be specific.
What to include, section by section
| Section | What it answers |
|---|---|
| Executive summary | What your business does and your goal for the next 12 months |
| Strategy | Fix-and-flip, BRRRR, or wholesale — and why |
| Target market | Cities, neighborhoods, price band, and property type |
| Buy criteria | The rules a deal must pass (e.g., 70% rule, min. profit, max rehab) |
| Financing plan | Hard money, private lenders, HELOC, partners — and your reserves |
| Renovation & team | Your contractor, agent, lender, and how you'll manage projects |
| Financial projections | Expected deals/year, average profit, and annual target |
Set your buy criteria in writing
The most important page is your deal criteria — the objective rules that let you say yes or no fast. Spell out your maximum allowable offer formula, the minimum profit you'll accept, your maximum rehab scope, and the markets you'll work. Written criteria stop the two most expensive beginner mistakes: overpaying for a property you fell in love with, and chasing deals outside your lane.
Common mistakes
- Vague criteria — 'good deals in good areas' isn't a rule you can act on.
- No reserve plan — every plan needs a cushion for overruns and longer timelines.
- Optimistic projections — model a base case, not a best case.
- Skipping the entity question — decide early how you'll hold and protect the business.
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Get started freeFrequently asked questions
- Do you need a business plan to flip houses?
- You're not legally required to have one, but it's strongly recommended. A plan clarifies your strategy and buy criteria, helps you avoid overpaying, and is usually expected by hard-money lenders and private partners before they fund a deal.
- What should a house flipping business plan include?
- An executive summary, your strategy, target market, written buy criteria, a financing plan with reserves, your renovation and team plan, and realistic financial projections for the year ahead.
- How do you set buy criteria for flipping?
- Define objective rules a deal must pass: your maximum allowable offer formula (often ARV × 70% − rehab), a minimum acceptable profit, a maximum rehab scope, and the specific markets and property types you'll target.
- Should I form an LLC for my flipping business?
- Many flippers use an LLC for liability protection and simplicity, sometimes adding an S-corp tax election as profits grow. Entity choice depends on your situation — confirm with a CPA and attorney. See our guide on LLC vs S-corp vs trust for flippers.