What is the practice commonly known as "fix and flip" in real estate?

The practice known as "fix and flip" in real estate refers specifically to the process of buying a property, performing renovations or improvements to increase its value, and then selling it for a profit. This strategy is often employed by real estate investors who are looking to capitalize on undervalued properties. The key elements of this practice involve identifying properties that require updates or repairs, investing time and money into those renovations, and ultimately selling the enhanced property at a higher price than the total investment.

The focus of "fix and flip" is on the short-term gain achieved through value-added improvements, distinguishing it from other real estate strategies such as acquiring properties to rent out or making long-term investments. Each of those strategies has different goals and timelines compared to the quicker turnaround typically associated with "fix and flip" ventures.