12/10/2025
All Dunn Investments Group Inc
Real Estate Investment Business Plan
Executive Summary
This business plan outlines a dual-strategy real estate investment company focused on both fix-and-flip properties for short-term profits and buy-and-hold rental properties for long-term wealth building and cash flow. By leveraging both strategies, the business will create multiple revenue streams while building equity and passive income over time.
Business Overview
Business Model: Hybrid real estate investment strategy combining property flipping and rental portfolio development
Core Strategies:
* Fix-and-Flip: Purchase undervalued properties, renovate, and sell for profit (30-40% of deals)
* Buy-and-Hold Rentals: Acquire cash-flowing properties for long-term appreciation and passive income (60-70% of deals)
Value Proposition: Generate immediate cash flow through flips while building long-term wealth through rental income and property appreciation.
Market Analysis
Target Markets:
* Emerging neighborhoods with strong fundamentals (job growth, infrastructure development)
* Areas with below-market pricing due to property condition
* Markets with strong rental demand and appreciation potential
Target Properties:
* Single-family homes (3-4 bedrooms)
* Small multifamily properties (2-4 units)
* Distressed properties 20-40% below market value
* Properties requiring $20K-$50K in renovations
Competitive Advantages:
* Dual strategy reduces risk through diversification
* Flip profits fund rental acquisitions
* Local market expertise and established contractor relationships
* Fast decision-making and financing capabilities
Investment Criteria
Fix-and-Flip Criteria:
* Purchase price allows for 70% ARV (After Repair Value) rule minimum
* Renovation timeline: 60-90 days
* Target profit margin: $30K-$50K+ per flip
* Exit strategy: Retail sale within 6 months of purchase
Buy-and-Hold Rental Criteria:
* Minimum 1% rule (monthly rent = 1% of total investment)
* Cash-on-cash return: 8%+ annually
* Strong neighborhood fundamentals
* Cap rate: 7%+ in target markets
* Property condition: Rent-ready or requiring minor repairs only
Operations Plan
Property Acquisition:
* Source deals through MLS, wholesalers, direct mail campaigns, auctions
* Network with real estate agents, wholesalers, and other investors
* Utilize off-market deal finding strategies
* Conduct thorough due diligence (inspections, title review, comparable analysis)
Renovation Management:
* Build reliable contractor network with vetted professionals
* Standardized scope of work and budget templates
* Weekly site inspections during renovations
* Focus on high-ROI improvements (kitchens, bathrooms, curb appeal)
Property Management:
* Professional property management for rentals (8-10% of gross rents)
* Tenant screening criteria: credit score 620+, income 3x rent, background check
* Standardized lease agreements and maintenance protocols
* Quarterly property inspections
Sales Process (Flips):
* Partner with experienced listing agents
* Professional staging and photography
* Price competitively based on current comps
* Target 30-45 days on market
Financial Plan
Startup Capital Requirements:
* Initial investment fund: $500,000-$1,000,000
* Emergency reserve: $100,000-$200,000
* Operating expenses: $10,000-$15,000
Funding Sources:
* Personal capital
* Private money lenders (8-12% interest)
* Hard money loans for flips (10-15% interest, points)
* Conventional financing for rentals (20-25% down payment)
* Home equity lines of credit (HELOC)
* Partnerships with other investors
Year 1 Goals:
* Complete 3-4 fix-and-flip projects
* Acquire 2-3 rental properties
* Average flip profit: $35,000-$40,000
* Rental portfolio cash flow: $500-$800/month per property
5-Year Financial Goals:
* Rental portfolio: 10-15 properties generating $6,000-$10,000/month
* Complete 15-20 total flips with $500K+ in cumulative profits
* Total portfolio value: $2-3 million
* Net worth increase: $750K-$1.5 million
Key Expenses:
* Acquisition costs (closing, inspections, due diligence): 2-3% of purchase price
* Renovation costs: Variable by project ($20K-$60K typical)
* Holding costs (utilities, insurance, taxes, loan payments): $1,500-$3,000/month per flip
* Property management: 8-10% of gross rents
* Marketing and lead generation: $500-$1,000/month
* Legal and accounting: $3,000-$5,000/year
* Insurance (general liability, property): $2,000-$4,000/year
Risk Management
Key Risks and Mitigation Strategies:
Market Risk: Property values decline or rental demand softens
* Mitigation: Buy below market, focus on strong markets, maintain cash reserves
Renovation Overruns: Projects exceed budget or timeline
* Mitigation: 20% contingency buffer, detailed scope of work, vetted contractors
Financing Risk: Inability to secure funding or refinance
* Mitigation: Multiple lending relationships, maintain good credit, conservative leverage
Vacancy Risk: Rental properties sit vacant
* Mitigation: Competitive pricing, professional management, location selection
Regulatory Risk: Zoning or permit issues
* Mitigation: Thorough due diligence, work with experienced professionals
Insurance Coverage:
* General liability insurance
* Property insurance for all holdings
* Builder's risk insurance during renovations
* Umbrella policy for additional liability protection
Marketing and Deal Flow
Lead Generation:
* Direct mail campaigns to distressed property owners
* Relationships with wholesalers and other investors
* MLS alerts for new listings meeting criteria
* Networking at local real estate investor meetups
* Online marketing (Facebook, Google Ads targeting motivated sellers)
* Door knocking and driving for dollars in target neighborhoods
Brand Building:
* Professional website showcasing past projects
* Social media presence documenting renovation progress
* Testimonials from past sellers and tenants
* Local market presence and reputation
Performance Metrics
Key Performance Indicators (KPIs):
For Flips:
* Average days from purchase to sale (target: 120-150 days)
* Average profit per flip (target: $35K+)
* Renovation cost per square foot
* Return on investment (ROI) percentage
For Rentals:
* Occupancy rate (target: 95%+)
* Cash-on-cash return (target: 8%+)
* Average rent growth year-over-year
* Maintenance costs as % of gross rent
* Net operating income (NOI)
Overall Business:
* Number of deals analyzed monthly (target: 20-30)
* Number of offers submitted (target: 5-10)
* Conversion rate (offers to closings)
* Total portfolio value
* Equity position across all properties
Team and Resources
Core Team:
* Lead Investor/Owner: Deal analysis, strategy, financing
* Real Estate Agent: Property sourcing, sales representation
* General Contractor: Renovation management
* Property Manager: Tenant relations, maintenance coordination
* Accountant/Bookkeeper: Financial tracking, tax planning
* Real Estate Attorney: Contracts, closings, legal compliance
Professional Network:
* Hard money and private lenders
* Home inspector
* Title company
* Insurance agent
* Plumber, electrician, HVAC specialists
* Appraiser
Exit Strategy
Individual Property Exits:
* Flips: Sold at completion to retail buyers
* Rentals: Hold 5-10+ years, sell when significant equity accumulated or 1031 exchange into larger properties
Business Exit Options:
* Build portfolio to generate $10K+/month passive income and transition to part-time management
* Sell rental portfolio as package to institutional investor
* Pass business to family members
* Continue scaling indefinitely as ongoing enterprise
Next Steps (First 90 Days)
2. Weeks 1-4: Secure initial financing, establish LLC, open business bank account, build contractor network
4. Weeks 5-8: Begin marketing for deals, analyze 20-30 properties, submit offers, close on first property
6. Weeks 9-12: Begin first renovation or rent out first rental, refine systems, continue deal pipeline
Conclusion
This hybrid real estate investment strategy provides both immediate income through flips and long-term wealth building through rentals. By maintaining disciplined investment criteria, strong operational systems, and conservative financial management, the business is positioned to generate significant returns while managing risk effectively. The key to success lies in consistent deal flow, efficient ex*****on, and continuous learning and adaptation to market conditions.
