A fix-n-flip, pop-top, and teardown are three different real estate investment strategies, each defined by the degree of renovation or construction done on the property and the investor's goals.
Fix-n-Flip
A fix-n-flip involves purchasing a property that is undervalued or in poor condition, renovating it (ranging from cosmetic updates to major repairs), and then quickly reselling it for a profit, typically within a few months to a year. The investor's focus is on adding value through improvements and capturing gains on the sale, not holding the property long term.
Pop-Top
A pop-top is a specific type of structural remodel in which the investor or builder adds a new story (often a second floor) to an existing home, thereby increasing its square footage and value. The original structure is retained, and the construction "pops the top" off the house to build upward. This approach is often used in neighborhoods where space is limited or where zoning allows for vertical expansion.
Teardown
A teardown refers to the complete demolition of an existing structure. The investor buys the property primarily for the land, removes the current building, and constructs a brand new home or structure in its place. This strategy is common in high-demand neighborhoods where the existing house is outdated or the land is more valuable than the building itself. It offers a "blank canvas" and allows freedom in design and maximizing property value but requires significantly more time and capital.
