What is a “Lux” Fix and Flip
Location mixed with potential!
The standard fix and flip is a great way to improve a distressed property and improve its resale value. A great way to get started real estate investing is start smaller with lower cost fix and flips, often focusing around lower cost homes or properties in lower prosperity areas. The advantage lies in being able to increase the cost and rehab a property that may fall to pieces without fear of breaking the bank. You can find more information HERE (Link to Fix And Flip Article)
A luxury fix and flip is expanding on this idea by focusing on a higher tier market.
Often you can find an older home, or a destressed property mixed in with the modern Mc-mansions or in more affluent neighborhoods. This property may be smaller or just in need of some TLC but the location is often be what drives up its value. Sometimes a simple addition or adding an additional level to a property can make it worth two to three times what you paid! The goal is finding the lowest quality smallest house in the rich part of town, and make it on par with the rest of the neighborhood around it.
Why these properties exist
Sometimes these can be homes owned by an elderly couple who are content with what they have, regardless of the surrounds changing over the course of their home ownership. The great part about this, is you often with just a little more work, you can add an extra zero or two to your profit!
