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Investment Strategies

Fix & Flip

Fix & Flip

Buy undervalued properties, renovate them, and sell for a profit. An active, project-based investment strategy.

The Process

  1. Find distressed or undervalued property
  2. Estimate rehab costs and After-Repair Value (ARV)
  3. Purchase (often with hard money or cash)
  4. Complete renovations
  5. List and sell for profit

The 70% Rule

Maximum Offer = ARV × 0.70 - Rehab Costs

A $200,000 ARV property needing $30,000 in rehab: max offer is $110,000.

Typical Costs

  • Purchase price + closing costs
  • Rehab/renovation
  • Holding costs (insurance, taxes, utilities, loan interest)
  • Selling costs (agent commission, closing costs)

Target Returns

  • Minimum profit: $20,000-$30,000 per flip
  • ROI target: 15-25%
  • Timeline: 3-6 months