Home prices are rising at a fast clip, and for-sale listings are still very low. That makes flipping a house more competitive than ever today, but it also mean potentially record returns for investors.
Read MoreHouse flippers seeing record returns
If you're ready to put in the work, there is certainly good money to be made. Just be smart, as emotion-free as possible and get ready for a real estate ride like no other. And no, it's not as easy as it looks on TV.
1. Do the math
Figure out what you can spend on both the house and the renovation, down to the last dollar, and include how much risk you are prepared to take. Price out the cost of carrying a short-term loan (if you need one), taxes, utilities and maintenance on the home for up to a year. Price out your material costs and labor. Look at comparable sales in the market to see what the likely sale price will be and don't expect a penny over. Once you have a financial plan in front of you, with a reasonable margin for risk, begin shopping for homes that meet that budget. Don't let a huge fixer-upper with potentially larger returns muddle your math.