Fix And Flip

Breaking down house hacking in the District of Columbia

Nov 09, 2025

Proceed With Caution

Section: Investor Intel
Author: Susan Isaacs, Washington DC Real Estate Strategist

Is house flipping a good investment strategy?
Flipping houses is a high-risk strategy for building wealth. Those experienced in renovation, permitting, project management, market knowledge and property evaluation expertise have an increased chance of success. The strategy also requires a working knowledge of financing options, and the funding and credit required to execute the first flip.

What Is The Fix And Flip Strategy?

‘BRRRR’ is an acronym for Buy Rehab Rent Refinance Repeat, a long-established real estate investment strategy. It was branded with the acronym by Brandon Turner of BiggerPockets.

The strategy involves purchasing a property in need of rehab at under-market value, renovating, renting it and effecting a cash-out refinance in order to purchase another property, and repeating the process.

What does ‘Fix And Flip’ Mean?

“Fix and flip” is the most common form of house flipping (the other is purchase in a rapidly inflating sub-market, hold through the escalation cycle, then resell). An investor buys a property requiring updates and repairs, complete renovation, or remodeling, makes the necessary adjustments, and resells at a profit, usually within 30 days to 6 months, depending on the extent of work.

Success depends on the market for the renovated home and the price the investor pays for the un-renovated property. The 70% rule states that the investor should pay at most 70% of ARV (after-repair value) for a home, less the cost of improvements. Keep in mind that some improvements are more valuable on resale than others–so investors need to know where their cash will go before making these calculations.

Why Choose Fix & Flip As An Investment Strategy?

Flipping houses can be very profitable if you know what you’re doing.

If you’ve never flipped successfully, think about starting off with a partner experienced in flipping.

While you don’t need to be a contractor or real estate agent to flip houses, your chances or making (and not losing) money are much greater if you:

Have access to reliable, capable and licensed contractors
Understand renovation: the process, costs and pitfalls
Understand current market trends and values for interior and exterior design elements
Understand neighborhood values and the market for the type and location of the home you plan to flip
Work with a real estate agent experienced with investing to help identify beneficial property values and resale potential, provide a network of pros to bid improvement costs, uncover needed repairs and improvements, and walk you through the buying and reselling processes.

Financing Keys

Fix-and-flip loans often take a significantly shorter time to get approved than other real estate loans, so your offers can close quickly.

Fix-and-flip loans can also offer more flexible loan terms with fewer regulatory inclusions.

There are tax breaks to be had if you hold your Fix & Flip in an LLC. According to SmartAsset.com, they include:

Home improvement costs on sold properties
Interest on real estate loans
Property taxes on investment properties
Building permit costs
Real estate commissions
Travel expenses
Office supplies
All off-site office expenses, like rent, internet, utilities, etc.
Legal and accounting fees

Which Property Types Make Profitable Fix & Flips?

Condos | Co-Ops

Condos and cooperatives might seem a good entree into fixing and flipping, but consider:
Shared plumbing, electrical and HVAC components can limit ability to improve and increase time needed to improve
Association restrictions and architectural review boards can add time, expense and restrictions to your improvement plans
The profit on condos is generally much lower than on other home types

Single Family

Attached or detached single family homes are excellent candidates for fix & flip. The key to higher profits on SFH is buying properties without structural issues, at the right price.

Research historic preservation in neighborhoods you’re considering and understand the restrictions that apply.

Obtain thorough inspections performed pre-purchase whenever possible, by:
General home inspector
Structural Engineer
Roof Inspector
Consider a sewer scoping inspection to determine the longevity of your sewer line.

Research zoning restrictions, flood zones, DC lead pipe map, and crime maps. These can impact your project and resale value.

Multifamily

Multifamily dwellings can be great candidates for fix & flips, depending on whether or not the units are tenanted. In the District, tenant laws can make it difficult to keep to a renovation schedule that brings a project in on budget.

Remember that your renovation costs will multiply for many fixtures and finishes. Factor that into your cost assessment.

Obtain thorough inspections performed pre-purchase whenever possible, by:

General home inspector
Structural Engineer
Roof Inspector

Take advantage of vacancies by making needed plumbing and electrical repairs and replacements when it is easy to access components through floors and ceilings.

Other Types Of Investment Properties In DC

House Hacking

Buy And Hold (can be a house hack)

Zuzu Notes:

Timing and planning your house hack often involves scaling. Many property owners initially begin with a basement rental in the home they occupy, later lease the upper floor, then expand to other methods. Or simply repeat!
Start With The Basics
Whether you’re investing in DC real estate as a side hustle or full-time business, understanding the local real estate market and fundamentals is key.
How I Help
Guidance and education
Off-market opportunities
Skill, experience and resources
Assembling A Team
Having a team of professionals in place will ease acquisition and management of your investment portfolio.
Your Realtor, lenders, property manager, contractors and vendors functioning as a team can identify opportunities, speed transitions, address issues, and increase profitability.