Additions for Flip Houses

[Andrew K.]

Do flippers on here try and avoid houses that would benefit from additions to get maximum profit? I'm a contractor, so I understand all the costs and time that adds to the project, but I was just curious what people's take on them were as a strategy for a flip.

I live in the DC metro area and with the high price of housing inventory and overall steady home sales, I've found the competition to be very high for desirable properties. Many times I see people actually overpaying for properties that actually hit the MLS. Even off market properties have sellers who can demand a premium.

I know speed is generally the name of the game in flipping, and additions will increase your construction/holding time, but are there any pro/con feelings one way or another?

My thought is being able to add value through an addition (either master suite addition, bumpout for bigger kitchen, raising the roof, etc.) would allow me to potentially pay a little closer to "market value" on the house under the guise of adding much more value (not only in desirability of the end product to a buyer but profits as well) to match larger property comps.

Again, I know it ultimately comes down to the numbers in any project and each is unique. I was just curious to hear if most people say no way to additions in general on flips or whether they don't mind taking them on.