Investor Playbook: Step-by-Step Guide to Buy, Fix & Profit (or Hold) in Today’s Market
Audience: 1 - 4 unit investors in Los Angeles & beyond
Goal: Pick the right deal, control costs, choose the right loan (Bridge/Hard Money/DSCR/Conventional), and exit for profit - flip or hold.
Why now: Flip spreads are thinner, rents are steady in many submarkets, and financing strategy is the profit lever. Elixir Mortgage Lending simplifies each step.
Step 1 - Set Your Investment Target (Flip vs. Hold)
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Flip when: light cosmetic scope, quick turn, strong comps within 0.5 - 1.0 mile.
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Hold (DSCR) when: rent demand is durable, cash flow pencils, upside via ADU or unit mix.
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Rule of thumb: If projected flip margin looks thin, plan a backup hold with DSCR.
Verify my mortgage eligibility (Oct 24th, 2025)
Quick tool:
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Target DSCR: ≥ 1.15 - 1.25 on realistic market rent
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DSCR formula: DSCR = (Monthly Rent - OpEx) / PITIA
Verify my mortgage eligibility (Oct 24th, 2025)
Step 2 - Screen Deals Fast (48-Hour Filter)
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Address & photos (Google/MLS/Zillow).
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As-is comps (last 90 - 180 days, similar bed/bath, within 10 - 15% sqft).
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ARV comps (renovated equivalents).
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Rent check (Zillow/HotPads/Rentometer + local property managers).
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Red flags: foundation, unpermitted additions, septic, severe slope/erosion, fire/insurance issues.
Pass if: ARV spread covers purchase + rehab + closing + carry + 10 - 15% margin.
Verify my mortgage eligibility (Oct 24th, 2025)Step 3 - Budget the Rehab (and Protect the Spread)
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Write a line-item scope (paint, floors, kitchens, baths, roof, systems).
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Get 2 - 3 contractor bids.
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Add +10% contingency (minimum) for 1 - 4 units.
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Time is money: plan 8 - 12 weeks for light cosmetic; longer for permits.
Flip math (quick):
Gross Profit = ARV - (Purchase + Rehab + Closing + Carry + Selling Costs)
Step 4 - Choose the Right Funding Path
A) Bridge / Hard Money (Speed & Flexibility)
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Use for: fast closings, rehab draws, credit or doc complexity.
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Pros: speed, asset-based underwriting, rehab funds released in draws.
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Exit: sell or refi to DSCR/conventional.
B) DSCR Loan (Cash-Flow Hold)
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Use for: rentals where income qualifies the deal.
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Pros: qualifies on property cash flow, not tax returns; LLC-friendly.
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Key: DSCR ≥ 1.15 - 1.25, realistic rent, stabilized expenses.
C) Conventional Take-Out
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Use for: strong credit/income and stabilized property.
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Pros: lowest long-term rates.
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Plan: bridge → conventional refi once rehab complete and rented.
Unsure which to pick? We'll run side-by-side terms and payments for you.
Verify my mortgage eligibility (Oct 24th, 2025)Step 5 - Underwrite Conservatively
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Comps: use the lowest of your top three ARV comps.
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Days on Market: add buffer vs. last quarter's avg.
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Costs: include carry (interest, taxes, insurance, utilities) + selling costs (commissions + closing).
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Insurance: confirm bindability early (wildfire/brush scores can kill deals late).
Step 6 - Lock the Capital Stack
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Purchase LTC/LTV targets (e.g., up to 80 - 85% LTC on some bridge programs).
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Down payment + rehab sources documented.
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Title/escrow opened; entity docs (LLC/operating agreement) ready for DSCR or bridge.
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Order as-is and (if required) subject-to appraisal early to avoid delays.
Step 7 - Execute the Rehab Like a Pro
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Draw schedule tied to milestones; require before/after photos.
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Weekly punch lists; pay for completed work, not promises.
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Keep receipts/invoices for the refi appraisal (value support).
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Inspect permit close-outs before listing or DSCR refi.
Verify my mortgage eligibility (Oct 24th, 2025)
Step 8 - Pick the Exit (Flip vs. Refi)
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If offers are soft: pivot to rent & refi (DSCR), then sell later.
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If offers are strong: sell and recycle capital.
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Break-even check (refi):
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Payment drop vs. projected rent
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Refi costs / monthly savings = months to break even
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Step 9 - Protect Returns with Risk Controls
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Run worst-case with flat prices, +10% rehab, +30 days DOM.
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Keep 3 - 6 months of carry reserves.
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Get fixed bids where possible; cap change orders.
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Maintain lender/agent updates to avoid last-mile surprises.
Verify my mortgage eligibility (Oct 24th, 2025)
Step 10 - Repeat with Systems
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Save a deal folder template (scope, comps, bids, photos, rent data).
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Track KPI per project: spread at offer, actual rehab vs. bid, hold time, ROI/IRR.
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Build your vendor bench (GC, PM, PM for leasing, insurance broker).
Verify my mortgage eligibility (Oct 24th, 2025)
Where Elixir Mortgage Lending Fits In (Your Financing Partner)
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Bridge & Hard Money (Los Angeles & CA): Speed, draws, clear timelines.
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DSCR Loans (Nationwide for Non-Owner Occupied): Qualify on cash flow; LLC/trust friendly.
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Conventional Take-Out: Shop best terms once stabilized.
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Strategy Calls: Flip-vs-Hold and Bridge-to-Perm roadmaps tailored to your deal.
Quick Start Checklist (Copy/Paste)
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☐ Target: Flip / Hold (DSCR) / Bridge-to-Perm
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☐ 48-hr screen: as-is comps, ARV comps, rent data, red flags
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☐ Rehab scope + 2 - 3 bids (+10% contingency)
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☐ Funding path: Bridge/Hard Money | DSCR | Conventional
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☐ Insurance bindability (brush/wildfire check)
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☐ Appraisal ordered (as-is / subject-to)
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☐ Draw schedule + contractor agreement
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☐ Exit plan A/B: Sell or Refi & Hold
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☐ Reserve plan (3 - 6 months carry)
Let's Run Your Numbers (Free side-by-side)
Email us an address, purchase price, and rehab estimate. We'll return:
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Flip net sheet (conservative ARV)
Verify my mortgage eligibility (Oct 24th, 2025) -
DSCR hold pro-forma (rent, expenses, DSCR, payment)
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Bridge-to-perm timeline with projected rate/terms
Elixir Mortgage Lending - local precision, investor speed.
📞 800-558-0496 | 🌐 ElixirMortgageLending.com
NMLS #1704105 | BRE #01901050
Smarter Lending. Better Living.