Fix and Flip
Also called: flipping houses, house flipping, flip
Fix and flip is buying a property, renovating it and reselling quickly for profit. The margin is consumed by four things people underestimate: transaction costs at both ends, holding costs while work drags on, renovation overruns, and short-term capital gains taxed as ordinary income. The 70% rule — pay no more than 70% of after-repair value minus repair costs — exists to build in the buffer.