House Flip Information

Renovation + ADU

Single-family homes
6–12 months
Build-to-sell

Investing in House Flips

Single-family house flips present a lucrative opportunity for investors seeking quick turnaround and high returns, requiring a low minimum investment amount. The aim of our flip investments is to swiftly enhance the property's value and sell it immediately, maximizing annualized returns for investors.

Our approach involves comprehensive interior and exterior renovations of the main house, often complemented by the construction of a brand new ADU (Additional Dwelling Unit) adjacent to the primary residence. This strategic addition transforms the single-family property into a dual-home property, significantly boosting its value compared to traditional house flip projects.

We specialize in flipping distressed, low-end homes situated in up-and-coming areas. These properties typically offer higher profit margins, greater transformation potential, and increased buyer demand, maximizing investor returns.

Single-family flips represent our quickest projects, typically completed within 10-14 months. This short timeframe makes them an ideal choice for investors seeking short-term investment opportunities with the potential for substantial returns.

The Benefits of Investing in House Flips

Short Terms

Investing in single-family flips offers the advantage of a relatively short investment timeline, with projects typically lasting 10-14 months on average. This allows investors to deploy their capital without committing it for extended periods, offering flexibility and liquidity.

Flips provide an excellent opportunity to diversify investment portfolios with different timelines, complementing longer-term holdings such as rental properties or stocks. By diversifying across various investment horizons, investors can manage risk more effectively while potentially maximizing overall returns.

Impressive value-add potential with ADUs.

Constructing a new dwelling unit on the lot instantly enhances the property's value and increases buyer demand significantly.

Low minimum investment amounts.

Investors have the opportunity to participate in fixer-upper deals for as little as $10,000.

Deal by Deal Control

Our projects are structured on a deal-by-deal basis, granting investors access to comprehensive property details. This allows investors to select specific properties in which they wish to invest, tailoring their investment portfolio according to their preferences and objectives.

Passive Real Estate Own

With Hezekiah, you have the opportunity to invest in equity rather than just debt. This means you acquire an ownership stake in the underlying real estate without having to contribute any sweat equity to the project.

Our ADU (Additional Dwelling Unit) strategy

Hezekiah's house flip strategy often includes building an ADU (Additional Dwelling Unit) on the property to capitalize on the growing demand for properties with ADUs, especially in urban markets like Miami facing housing shortages. This approach allows us to add significant value to the property within a short timeframe.

Constructing a new structure on the property creates two separate housing units, addressing the housing shortage while also enhancing the property's marketability. This strategy not only meets the needs of buyers seeking additional living space or rental income but also makes the property more attractive for resale.

Investors should understand the potential of our ADU strategy as a key component of our house flip projects.

An Accessory Dwelling Unit (ADU) is an additional residential unit built on a single-family property, typically located adjacent to the primary house. ADUs may also be referred to as guest homes, in-law suites, or casitas.

Homes with ADUs are highly coveted by various groups:

Buyers seeking to live in one unit while offsetting a portion of their mortgage through rental income from the ADU.
Parents of young adults desiring a separate living space for their grown children.
Multi-generational households seeking to provide aging parents with some independence while residing on the same property.
Buyers new to the area who wish to have a guest house readily available for out-of-town visitors.
Private investors recognizing the potential for multiple income streams and substantial appreciation on this type of residential property.

Properties featuring an ADU are highly sought after due to their versatility. Homebuyers can utilize the ADU to accommodate family members or guests, or even generate passive income by renting out the unit. In Florida, the median rental rate for an ADU is $2,000 per month, but in premium markets like Southwest Florida, it can reach as high as $4,000 per month. This rental potential appeals to buyers seeking to offset their mortgage costs with rental income.

In a single-family flip, investors acquire both the house and the lot. By constructing a second unit on the same lot, investors essentially gain an additional dwelling with the benefit of "free" land. This not only maximizes the property's value but also enhances buyer demand due to the added options and income potential provided by the ADU.

The Process of a House Flip Investment

Choosing the Right Property

A flip investment begins with sourcing the right property, a process involving various considerations such as purchase price, transformation potential, and suitability for accommodating an Accessory Dwelling Unit (ADU).

Leveraging Hezekiah's extensive industry connections, we secure deals that individual investors might not have access to. Our investment properties are sourced through relationships with numerous local brokers and nontraditional channels, including off-market properties, foreclosures, probate courts, and auctions. Additionally, we collaborate with developers nationwide to offer investors diverse opportunities and market exposure.

Hezekiah prioritizes quality over quantity, targeting deals with the highest profitability potential. Our rigorous due diligence process involves analyzing numerous properties to identify those meeting our stringent standards. This process is designed to mitigate risk and ensure optimal returns for investors.

Key aspects of our due diligence process include:

Surveying the neighborhood to assess the surrounding area's suitability.
Conducting comparative market analyses to establish fair market value relative to recent sales
Reviewing rental income and vacancy rates to gauge income potential.
Researching zoning codes to determine allowable construction.
Projecting transformation and value-add potential.
Estimating construction costs and expected return on investment.

Securing the Property

After our offer on a property is accepted, our experts conduct a final round of due diligence to ensure all necessary checks are completed. This involves confirming the property's title is clear, verifying the absence of permit restrictions, and inspecting for any structural defects.

Once our real estate experts are confident in the property's suitability for our investors, we proceed to establish the LLC for the property, secure any required financing, complete all title and escrow documentation, and successfully close the deal. This meticulous process ensures a smooth transition of ownership and sets the stage for the project's execution.

Renovating the Existing House

Hezekiah assumes full responsibility for managing the renovation and building process from inception to completion. This entails conducting extensive interior and exterior renovations on the main house, which often involves stripping the property down to the studs and commencing anew to achieve a fresh, modern appearance.

As each house is unique, we tailor our approach to maximize value based on the property's specific requirements. This may include reconfiguring the layout to enhance functionality and appeal, as well as upgrading landscaping and hardscaping to improve curb appeal and overall aesthetics. Our goal is to transform each property into a highly desirable and marketable home.

Building the ADU

Hezekiah collaborates with experienced architects to craft unique designs for each ADU, tailored to suit the specific characteristics of each lot. We consider factors such as the style of the existing home and the layout and size of the lot to maximize living space while maintaining harmony with the surroundings. Additionally, we ensure that gas and electricity are metered separately from the main house, facilitating the use of the ADU as a rental unit.

Once the ADU design plans are finalized, we submit them to the city for permitting. While awaiting approval, we focus on completing extensive renovations on the primary house, ensuring that we are ready to commence construction of the ADU as soon as permits are granted.

Our streamlined process allows us to complete builds efficiently, thanks to our proven system and experience. Additionally, our ability to undertake multiple projects enables us to negotiate favorable labor and material costs, further optimizing the profitability of our endeavors.

Selling the Property

Upon completion of construction, we capture final photos of the property and proceed to list it on the market for sale. Leveraging targeted advertising strategies, we actively promote the property to qualified buyers, ensuring maximum visibility and interest.

Timeframe

Hezekiah's house flip projects typically span 10-14 months from start to finish. The timeline commences upon opening escrow for the purchase of the property, followed by the processes of acquisition, design and permitting, renovation and construction, and finally, advertising the property for sale. The timeline concludes upon closing escrow on the sale of the home. Following the sale and escrow closure, disbursements to investors are typically sent within 10 business days, ensuring a timely return on investment.

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