You just said it, your criteria can not be dictated by another's. Basic math will tell you if the ROI is worth the effort. Will it sell in less than 30 days at that price and will that price cover your carrying & repair costs, plus profit? You will never profit as much on the first one as the fifth one, and so on, as you need to learn from your mistakes. I see way too many people over improve as if they'll be the ones living in the home. Use a CAP-Rate analysis to determine much of your decision to buy and you'll need to have a trusted contractor for estimated repair & improvement costs. I'm a Buy & Hold guy, so I do the same thing when determining my After Repair Rents and when I'll be profitable based on those rents.

estimate what is needed for repairs and updates to bring it to a marketable condition....decide what the top value would be for the property.... deduct the repairs from the top figure...minus profit....closing costs including commission.... and that's an approximate of what it's worth....very rough .... but it will give you an idea when you look at it....the builder will do accurate numbers including a "margin of error"....

kmow your market, if a property is low for a reason dressing it up wont help.

you can polish a turd but its still a turd.

you make the money on buy side, not sale; if you buy right and have a handle on your budget you should be fine.

An entry level way to get started may be to team up with someone with experience to split risk and reward.

If it were easy I suspect tons of people would be doing this. There are so many issues to consider, including financial, and going about it on your own is pretty risky and not a sound investment. I think Kenneth J. Jones and some others have very sound advice. The location will be key - buying and flipping won't necessarily work everywhere, and the costs will vary tremendously

If it was easy everyone would be doing it.  Most deals never hit mls.  You need to start networking with investors,  wholesalers, and hard money lenders in your market. 

There is no easy way to invest in real estate investments.  Learn everything you can about the market before you make that first investment.

I dont know about "easy", but I do see most drastically underestimating what it will take, and even the tv shows with the supposed professionals fail to show many of the hidden costs to holding and rehabing a home.

As far as actual numbers goes, it will vary with each property and each market.  I have bought some for 1/3 of the assessed value and thought I paid far too much by the time I was done.  Yet there were others that I paid more for and did very well.

The best suggestion is to do your best estimate and then add a HUGE cushion for the extras, time, and carrying costs.

Allen M. - so many good answers - specially Thomas J. Nelson, Realtor and Barbara Todaro ...

Come to my market and I will advise you on the good fix and flippers. 

The best way is to wait until it is a Buyers market, otherwise you may be wasting a lot of time.

Each property and market is different

Unfortunately not in the strong sellers' market that we are currently experiencing. IMHO

There is no easy way anywhere otherwise everyone would be doing it.

Allen M. It depends on the area, and investors.

Cash would be good. Most investor/flippers pay roughly 65% of fair market value for fixer uppers, but it depends on how much work is needed. many factors to consider, but it can be done.

It varies considerably.  You need to have a lot of cash and a lot of patience.  It is not easy, despite what the TV shows make you think.

Opportunities are everywhere although they may not be as obvious now(in my market) as they once were.  As others have answered -- know your market, know the numbers and know the risks.  Good luck.  

An "easy" way ... if it were easy more people would be doing it ... and doing it successfully.  Hard work. Planning. Knowing the market. No easy. 

Lots of home work has to be put in.  It is all in timing of a home to get it at a good price .

Suggest you buy a book for flip. It details steps.

The minimum I figure is an investor must pay 70% on the dollar to make a profit. This depends on estimation of the repairs on the home.

My husband and I did quite a few flips back in the 90's. I had a check list for all the potential expenses and factored in an extra $5000 for unexpected expenses. That was back in the day when we were able to purchase most homes for  $15,000, $24,000, $27,000, etc. We would have the entire interior painted, add a new stove and refrigerator and new carpet and vinyl. New landscaping out front too. I really enjoyed it. 

Allen M. Only a thorough analysis with a positive ROI will determine if a flip is profitable.

Allen,

Your approach is entirely wrong. (how much less than a comparable)

As an investor, you need to looking at PROFIT not expenses.

Until you turn your process around you will be outbid EVERY TIME.

Today's market sees fewer and fewer properties are are investor grade. The key to success is creating the inventory and bypassing the bid frenzy.

Then you need to know the 105% value of 'prom queen' house when it sells six months after acquisition. Profit is created by the resources available to you once you know the goal.

Be aware, anything less than $50,000 profit is not worth your time.

Take the average sales value of the subject area/property and work backwards deducting purchase price, repairs, commissions and expenses. For the risk involved, a return is expected. What rate of return do you want is the real question.

Richard Weeks sums it up well. Nothing is as easy as shown on TV!

     Politely I am saying, it is "easy" to get burned. I've seen people get in over their head, buy tear-downs, go way over budget, etc.

     You need to know the market.  You need to do the math (ROI).   You will also need cash to make strong offers, and either cash or credit for rehabbers, contractors, sub-contractors.

Without the help of an agent, money backers of some sort and know-how you're spinning your wheels.

I get so many calls a year by potential flippers - problem is? They don't want to work for the flip and think it's as easy as making a low ball offer and turning it around the same day of closing.. Um ok!

There is no easy way but there is a right way and a wrong way. First each home is different, there is no set percentage to say the home is worth renovating. Some need less, some need more, the Key is looking at what the home is worth fixed and then what you must pay to buy it plus how much it will cost to fix it. I list and sell many bank owned homes a year and work with a group of different cash buyers. If you are new, find someone experienced and partner with them so they can teach you

parked and reading...

It is easy to get into this market if you have the funds. Making a profit is a bigger challenge. Attend some of your local foreclosure sales to learn about the competition.

I do not know.

Allen it all depends on location, in Beverly Hills, CA vs in Malibu, CA it makes a huge difference what part of the country are you in??Endre