What are Fix and Flip Value Add Properties

[Coral Hernandez]

What are Fix and Flip/Value-Add Properties:

Property Types:

• S.F.H. (Single Family Home)
• Multi-Family Units & Condos
• Commercial Units

Value-Add properties commonly require a major upgrade or repair, that once completed would increase its Value and/or Rental Income.

In most situations these properties are what we call “Distressed Properties”, and/or possibly “Off-Market Deals”, (which we will go into more depth in our other posts). This is where you purchase the property at a price that is low enough, that after repairs and other costs, you are able to make a decent profit(>35%) for the work put in.

After you increase its value and/or income earning potential, you deploy the Flip part of the Flip & Fix Strategy and place it on the Market. Now, that you made the house worth more, this is where you earn your profit.

If you did your homework right, you would have calculated your “Rehab Cost” correctly, making sure to account for the unexpected when it comes to repairs. Thus, your Listing Price should be in line with the current Market so that you are able to sell quick.

Knowing you Math is extremely important when completing a successful Fix & Flip Strategy such as the one above. Know your numbers and plan conservatively and you will cash out each time…