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What is house flipping?

House flipping is a real estate investment strategy where someone:


  1. Buys a property (usually undervalued or distressed)
  2. Renovates or improves it (cosmetically or structurally)
  3. Sells it quickly for a profit


The goal is to buy low, fix it up, and sell high, often within a short period (a few months to a year).


Example:

An investor might buy an old house for $200,000, spend $50,000 on renovations, and sell it for $300,000 — making a potential profit (before taxes and fees) of $30K profit after $50k rehab and $20k in Fees & Holding Costs.


Common traits of a house flip:
  • Short holding period
  • Renovations to increase value
  • Fast resale to maximize return


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