A major drawback to flipping a house is that you won't be able to turn a significant (or any) profit if something goes wrong. Buying an undervalued home increases your chances of turning a profit, but fixer uppers and foreclosed homes may end up having expensive problems like foundation, structural, electrical, or plumbing issues. These unexpected issues can eat into your budget and shrink your profit margin, potentially to a point where the flip wasn't actually worthwhile.