FIX-N-FLIPS!  Buying homes at wholesale prices, making repairs and selling retail.   Income can be generated and some can make a comfortable living just doing Fix-N-Flips.  Good strategy for the retired wanting a part time job, investor needed to add additional cash annually.  Can only be done successfully in certain markets at certain times.  Extreme caution must be exercised and knowledge and experience is critical.  Good returns can be obtained but losses can also occur.  We have been involved in over 100 Fix-N-Flips from $60,000 purchase price to $600,000 purchase price.  Some have made incredible returns and some have lost money.  No profits are guaranteed. 

As with most investments, the value is in the buy.  Buy low enough below market value, it is easier to make a profit.  It is recommended to stay in lower price ranges (more buyers) until comfortable with the process before branching into higher price homes.

The Fix-N-Flip expenses include Acquisition Costs, Rehab Costs, Holding Costs and Selling Costs.  Rough rule of thumb is 7% Acquisition Costs, 3% Holding Costs, 10% Selling Costs and 10%profit and $10,000 Rehab.  Any of these areas, if not handled correctly, can cost you the profit of an entire deal, in addition to market shifts during the process.  Timeline is 4-6 months.  With the occasional exception.  Sept of 2010 we did the fastest one so far.  Purchased from Foreclosure Auction on Thursday and sold over the weekend for a fast $20,000 profit.  If a person can do any of the above jobs themselves, (buy themselves, rehab themselves or sell themselves)  they can double dip on many fronts, which is why this can be a very lucrative business for the entrepreneur or small partnership.