Aug 20, 2026
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Add us on GoogleBaltimore is in the midst of a real estate renaissance, with the city, state and non-profit groups pouring “unprecedented levels of funding” and effort into “rehabilitating entire blocks” of derelict or abandoned homes, according to the Wall Street Journal.
And that rehabilitation is already drawing new buyers to the city — where the median home sale price of $249,864 is up 3% year-over-year but still well below the national median of $408,776 — while also enticing amateur home flippers to get in on the action.
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One such investor, a Maryland plumber named Chris Waldron, told the WSJ he paid $45,000 at auction for an abandoned home that he hopes to sell for $300,000 after putting $130,000 into it.
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The outlet described the home as having “kitchen equipment, furniture, clothes, bottles, a family picture and wooden planks with nails pointing upward coating the floor,” with Waldron exclaiming “What did I get myself into?” upon entry.
Properties purchased at auction are often sold as-is and Moneywise was unable to reach Waldron to confirm if any pre-inspection had been conducted. But the WSJ noted that Waldron visited the home for the first time after the auction, which means he may not have much information about what lies beneath the mess on the floor.
As Daryl Fairweather, Redfin’s chief economist, told Moneywise, “The biggest risk with a fixer-upper is what you can’t see.”
What’s so flipping risky?
Buying a home to renovate and sell can be a good investment.
“Some of the best flipping opportunities are homes that don’t need any major work but primarily need a cosmetic overhaul,” Benjamin Clark, president of the non-profit National Association of Exclusive Buyer Agents, told Moneywise.
But the math on potential profits is often more complicated than just the investment and sale prices.
“Foundation issues, water damage, an aging roof, outdated electrical or plumbing, mold and asbestos can quickly turn a promising flip into a money pit,” Fairweather said. “Get a thorough inspection and contractor estimates and leave plenty of room in the budget for surprises.”
Nick Gromicko, founder of the Colorado-based International Association of Certified Home Inspectors, added that “buying a home with the intent to flip it is a business transaction” and that an inspection “should be focused on the potential downside.”
That, he told Moneywise, could include issues like radon, mold problems, an old roof or serious foundation problems that can cost you between a few thousand dollars and “more than $100,000.”
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How the flip fits into the wider community can also influence the success of the investment, with Realtor.com senior economist Hannah Jones advising Moneywise to “make sure local market dynamics support the effort and that you won’t end up spending more time or money than the flip will pay back.”
Then, of course, there are the elements that a flipper can’t control.
Recent analytics from real estate data firm ATTOM show that single-family home and condo flips totalled 64,348 units between January and March of this year, with profit margins hitting 25.4% and a “typical gross profit” of $66,000. While that’s a slight increase from the previous quarter, it’s down year-over-year from 29.6% and $74,172.
And even a strong flip in the wrong market could yield fewer returns. A 2025 Realtor.com analysis found high mortgage rates hit sales of flipped homes harder because they “tend to be smaller, carry a higher price per square foot and are more likely to be located in urban areas.”
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What to look for when buying a flipped house
The “flip” side of the issue, so to speak, is the risk in purchasing a flipped home. These homes aren’t necessarily a bad investment but, like with any real estate purchase, due diligence is key.
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“If you’re buying a flipped home, ask for the receipts,” Jones said. “A flipper should have pulled permits with the city for any major structural work and be able to show you evidence of it. Beyond that, get an independent inspection to confirm the flip was done well and won’t leave you with expensive headaches down the road.”
Clark added that flipped homes “often contain major systems near the end of their useful life, and a brand-new kitchen does not necessarily offset the risk of a 25-year-old roof, an aging furnace or ungrounded wiring.”
He said to ensure such systems have been updated and also “look closely for surface-level fixes” like “new luxury vinyl plank flooring laid directly over unlevel or sagging subfloors” or “fresh drywall that could be hiding leaks,” among other potential issues.
To that end, Clark advised hiring “independent specialists, such as a sewer scope technician to inspect the main lateral line, licensed electricians or plumbers to assess those systems or a structural engineer to evaluate moved walls and unlevel foundations.”
When hiring an inspector, Gromicko notes that a “certified master inspector” is the highest professional designation in the industry.
“Hire the best inspector in your neighborhood,” he noted bluntly, “to make sure you aren’t buying a pig with lipstick.”
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Mike Crisolago is a Sr. Staff Reporter at Moneywise with nearly 20 years of experience working as a journalist, editor, content strategist and podcast host. He specializes in personal finance writing related to the 50-plus demographic and retirement, as well as politics and lifestyle content.
