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 process of fixing and flipping is broken down into 3 high level parts. These are the purchase, renovation, and sale.
What is a distressed property? A distressed property, is a property that requires work to get it to the optimum sale state. Typically, the house is distressed because the owner is in some sort of hardship and wants cash quick.
Fixing the house is definitively a majority of the work in a flipping business. Mistakes here can easily tank proper execution of every other step in the process.
This is where you have to know what the competition is, and how you can provide a product that is competitive in a cost-effective manner. This is important so you can provide an accurate description of what is expected of each subcontractor.