Fix & Flip vs. Build & Flip

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Hello All,

Does anyone on here prefer to build and flip the new construction?

The market where I live has become extremely tight, I started flipping homes and slowly had to shift my business to buying spot lots to build new homes on. Now I'm finding even single building lots aren't leaving much room for profit so I'm considering multi-lot developments. Seems to be a big gamble in this market, especially with the road costs between 500 and 800 a foot. 

I was lucky to find a decent 1978 home to flip for my next project, but I'm going to have to consider larger tracts of land in the near future and was curious what other investors are doing in tight markets where good deals are hard to find. Has the build and flip strategy worked for others and has anyone been able to scale it up to larger developments?

Any advice would be greatly appreciated!

- Luke

[Emmanuel Y.]

I understand your concerns about the tight market conditions and the need to adapt your business strategy. Building and flipping new construction can be a viable approach in such situations. However, with single building lots offering limited profit potential, exploring multi-lot developments may be a worthwhile consideration, despite the inherent risks, including the high costs of road development.

It's great that you found a suitable 1978 home for your next flip project. As you plan for the future, larger tracts of land might be necessary. In tight markets where good deals are hard to find, other investors have pursued various strategies. Some have successfully implemented the build and flip strategy, while others have expanded into larger developments.

To gain insights from fellow investors, I recommend reaching out to local real estate investment groups, attending industry events, or joining online forums specific to your market. Engaging with experienced professionals can provide valuable advice and guidance based on their firsthand experiences. Additionally, consulting with real estate professionals, such as agents, developers, or lenders, who specialize in your target market, can offer valuable market-specific insights.