Fix-and-flip investing can generate substantial profits—successful flippers often earn $40,000-$80,000 per project. However, 65% of first-time flippers lose money due to preventable mistakes.
The 70% Rule
Maximum purchase price should not exceed 70% of after-repair value minus renovation costs. If ARV is $300,000 and renovations cost $50,000, your maximum purchase price is $160,000.
Building a Winning Strategy
Start with cosmetic fixer-uppers requiring paint, flooring, and kitchen/bathroom updates rather than structural work. Track detailed metrics on every project to refine your underwriting.