ROI on Why Fix & Flippers have switched to Ground-up Construction

There's a good reason why flipping homes for profit has become passe. Why bother with a 3-5% cap rate when you can get 17-32% cap rates from ground-up construction.

And you can net even more if you sell off the ADUs compared to renting.

That's because the rough cost of buying a home in Coastal California averages $800 per square foot. If you get a deal at less cost, that's typically because the property requires rehab which bring the cost back up.

By contrast, the cost of construction starts at $150 per square foot on a large project and $400-500 sfqt. on a smaller project. So you're building a brand-new, maintenance-free energy efficient dream home for the fraction of the cost of buying a ratty old home.

But no need to trust me because math tells the truth. Watch this video to see how my clients are making serious money in real estate investing again.