What’s Next After a Few Fix-and-Flips? Find Higher ROI Without Higher Risk
You’ve Flipped a Few Houses—Now What?
Once you’ve successfully completed a couple of fix-and-flips, the natural next question is: what’s the next level? More importantly, how do you get higher returns without taking on higher risk?
Go Vertical Instead of Bigger
Scaling doesn’t have to mean jumping into large apartment complexes or risky partnerships. Instead, focus on value-add strategies:
- BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat): Keep the property and extract equity while gaining rental income.
- Small Multifamily (2–4 Units): More income with residential financing still available.
- ADUs (Accessory Dwelling Units): Add a second unit to your lot and double income potential.
Boost ROI Through Operational Efficiency
It’s not just about the property—it’s also about how you run your business. Tighten your team, automate where possible, and rely on trusted data to make confident decisions.
Look for Niche Opportunities with High Upside
When you’re ready to experiment, consider these high-yield strategies:
- Short-term rentals in strong tourist markets.
- Student housing in cities with high enrollment universities.
- Direct-to-seller marketing for off-market deals with better spreads.
How to Avoid Fool’s Gold
Not all deals are as shiny as they seem. Here’s how to avoid the fake glitter:
- Too-good-to-be-true margins: Re-analyze rehab and ARV assumptions.
- Weak markets: Make sure there’s rental demand and liquidity.
- Over-leveraged deals: Multiple exit strategies are a must.
Ask Yourself Before You Scale
- Is this repeatable?
- Do I have the right team?
- What’s my worst-case scenario?
- Am I investing for cash flow, equity, or both?
Final Thoughts
The best investors scale with precision—not just ambition. Look for opportunities where you control the outcome more than the market does. ROI is important, but risk-adjusted ROI is the real gold.