FIX AND FLIP HOUSE BASICS TO GETTING STARTED

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At its core, the fix and flip and flip strategy is quite simple. But the devil is in the details. Spending less on the rehab, hold, financing, than the value created is easier said than done.

Why Listen To Me?

I have flipped over 30 houses in the last 4 years. During this time I have executed on a wide variety of strategies, with most of the flips being extensive renovations.

The Framework

A very popular rule in the fix and flip industry is called the 70% rule. It is defined as: ARV * .7 > Purchase Price + Renovation Costs

The Flip Profitability Formula

It makes more sense to include more precise estimated costs for as many items as you can possibly project such as: real estate agent fees and transfer taxes when selling as the transaction costs.

Fix and Flip Overview

The process of fixing and flipping is broken down into 3 high level parts. These are the purchase, renovation, and sale.

Buying a Distressed Property

What is a distressed property? A distressed property, is a property that requires work to get it to the optimum sale state.

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