‘What did I get myself into?’: He paid $45,000 for a derelict Baltimore home to flip it for $300,000 — but these risks could sink any profits

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.

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“Foundation issues, water damage, an aging roof, outdated electrical or plumbing, mold and asbestos can quickly turn a promising flip into a money pit,” Fairweather said.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.”

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.”

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.