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Real Estate Flipping: How to Earn 15% to 40% in Dollars with One-Time Renovations - Ambito Finaciero
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www.ambito.com
July 23, 2025
By José Luis Cieri
A young woman applies a coat of paint to her bedroom: simple aesthetic changes can improve the perceived value of a used property. Pexels
Real estate flipping — the purchase of a used property, its renovation, and subsequent sale within a short period of time—has regained prominence in the Argentine market. In a context where units are still available below replacement cost, especially those over 30 years old, this option represents a dollarized, dynamic, and profitable option, albeit one that is subject to risks.
The renovation stage is key in flipping: it must add real value without exceeding costs. The two most common mistakes are under-remodeling—failing to improve enough—and over-remodeling—investing excessively in improvements that the market doesn't value—which reduces profitability, industry sources warned.
For his part, Ezequiel Wierzba , CEO of Click, agreed that flipping has gained momentum again: "Several investors are taking advantage of older, well-located but poorly presented units to enhance their value and sell them at a competitive price. It's not just about renovating, but about identifying specific opportunities where a smart improvement can truly change the perception and value of the property."
Profit margins are wide, but variable. Álvaro Gallo Kaplan , director of Lanven, stated: “Today, according to some market data, profits of between 20% and 40% can be reported on the initial investment. But there are also risks such as construction costs , structural issues, and the inflation we have in our country, which carries greater risk in the market with overvaluation of properties and delayed sales.”
The duration of each operation depends on the type of improvement and the original condition of the property. The quickest ones are completed in three months; others can take up to a year. In all cases, market knowledge and cost forecasting make the difference.
Wierzba added another warning: “Construction costs are constantly rising, and if not calculated correctly, they can eat into a significant portion of the profit margin. That's why flipping works for those who know the market, have patience, and do the math with their feet on the ground.”
The first step is to find properties with potential. García highlighted location as a key factor, followed by the property's overall condition and the ability to negotiate an attractive price. "You have to understand the real estate market cycle to predict marketing times. Furthermore, entry and exit costs can represent up to 12%, and the renovation cost is around US$1,000 per square meter, depending on the depth of the work."
Wierzba emphasized the need to "look for real opportunities, not illusions." He recommended analyzing the difference between the purchase price and the resale value, taking into account all associated costs, including the deed, taxes, fees, and renovations.
One aspect often overlooked by investors is the quality of the installations. Maximiliano Olmi , of Arquitecto x Hora, emphasized: “Renovating a kitchen without replacing old plumbing can lead buyers to perceive the renovation as a mere cosmetic change. If the pipes are still made of 70-year-old lead, buyers know they'll have problems at some point. In those cases, the investment isn't recovered, and it can even be a factor in a downward negotiation,” he said.
Therefore, he recommended seeking advice before making improvements and prioritizing those that truly add value to the property.
Francisco Altgelt , president of Altgelt Negocios Inmobiliarios, maintained that analyzing the cost per square meter of purchase and improvement is crucial in any flipping transaction. "That calculation is the key to profitability. If the acquisition value plus the investment exceeds the market price of a finished property, there's no business," he explained.
Furthermore, Altgelt warned about the difficulties that renovations can present: “It's difficult to predict the total cost and establish a specific timeframe for a project. Unforeseen events always arise, from structural issues to delays in the delivery of materials. Investors must be prepared to make quick decisions and adjust on the fly without losing control of the budget.”
The most common renovations include the kitchen, bathroom, and living room. Renovating these three spaces simultaneously can require a minimum investment of $18 million, although some banks offer loans of up to $100 million, and businesses in the sector finance purchases for up to $40 million.
Updating a standard kitchen costs between $8 and $12 million, depending on materials and finishes. Bathrooms range from $6 to $8 million. Upgrading a living room—with paint, lighting, and flooring—costs between $2 and $3 million.
Regarding the impact on resale value, improvements can increase the property's value by 10% to 15%, provided they do not involve major structural interventions.
A couple chooses over-the-sink tiles: improving the backsplash design adds aesthetic value without requiring large investments.
A 45-year-old two-bedroom apartment in Almagro sold 90 days ago for $90,000. After renovations to the bathrooms, kitchen, and balcony, it's now listed for $110,000. In another case, a townhouse in Villa Pueyrredón, purchased for $102,000 six months ago, appreciated 20% after remodeling the bathroom, kitchen, and floors. It's currently listed for $122,400.
Counteroffers are common in the Argentine market and range between 5% and 6%. Therefore, the resale price must include a reasonable margin to avoid affecting expected profitability.
While the rationale for flipping is geared toward selling, some investors consider holding onto the property and renting it out. Wierzba noted that refurbished units rent well, quickly, and in dollars. "Depending on the area, they can provide a significant monthly rent, maintaining the capital in the property and with the option of appreciation."
Gallo Kaplan, on the other hand, believed that the objective should remain the sale. "If the sale is quick, the return typically exceeds 20% and allows for immediate capital recovery."
Olmi added that successful projects are based on rational decisions. “It's not enough to have good taste or a desire to renovate. You have to understand the type of buyer you're targeting, the construction timescales, and the market rules.”
This strategy isn't designed for traditional savers or those seeking passive income. It requires active management, project oversight, and precise decisions in the event of unforeseen events.
The best results come from strategic vision and market insight. Restructuring allows for value and profitability in dollars in short periods of time.
“Good profitability doesn't depend solely on buying low and selling high, but on making smart decisions at every stage of the process,” Wierzba concluded.
www.buysellba.com
Source:
Flipping inmobiliario: cómo ganar entre 15% y 40% en dólares con refacciones puntuales
Esta estrategia de inversión resurge con fuerza. Cómo identificar oportunidades, calcular márgenes, evitar errores y lograr ventas rápidas con mejoras clave.
www.ambito.com
July 23, 2025
By José Luis Cieri
A young woman applies a coat of paint to her bedroom: simple aesthetic changes can improve the perceived value of a used property. Pexels
Real estate flipping — the purchase of a used property, its renovation, and subsequent sale within a short period of time—has regained prominence in the Argentine market. In a context where units are still available below replacement cost, especially those over 30 years old, this option represents a dollarized, dynamic, and profitable option, albeit one that is subject to risks.
The renovation stage is key in flipping: it must add real value without exceeding costs. The two most common mistakes are under-remodeling—failing to improve enough—and over-remodeling—investing excessively in improvements that the market doesn't value—which reduces profitability, industry sources warned.
Mateo García , residential director at Toribio Achával, defined it as "an interesting option for achieving profitability in the sector. It involves buying properties at a low price, making improvements, and reselling them at a higher price. But in a country like ours, where economic periods greatly affect the market, timing is everything."For his part, Ezequiel Wierzba , CEO of Click, agreed that flipping has gained momentum again: "Several investors are taking advantage of older, well-located but poorly presented units to enhance their value and sell them at a competitive price. It's not just about renovating, but about identifying specific opportunities where a smart improvement can truly change the perception and value of the property."
Profitability in dollars: how much is it?
Profit margins are wide, but variable. Álvaro Gallo Kaplan , director of Lanven, stated: “Today, according to some market data, profits of between 20% and 40% can be reported on the initial investment. But there are also risks such as construction costs , structural issues, and the inflation we have in our country, which carries greater risk in the market with overvaluation of properties and delayed sales.”
The duration of each operation depends on the type of improvement and the original condition of the property. The quickest ones are completed in three months; others can take up to a year. In all cases, market knowledge and cost forecasting make the difference.
Wierzba added another warning: “Construction costs are constantly rising, and if not calculated correctly, they can eat into a significant portion of the profit margin. That's why flipping works for those who know the market, have patience, and do the math with their feet on the ground.”
Which properties to choose and how to spot opportunities
The first step is to find properties with potential. García highlighted location as a key factor, followed by the property's overall condition and the ability to negotiate an attractive price. "You have to understand the real estate market cycle to predict marketing times. Furthermore, entry and exit costs can represent up to 12%, and the renovation cost is around US$1,000 per square meter, depending on the depth of the work."
Wierzba emphasized the need to "look for real opportunities, not illusions." He recommended analyzing the difference between the purchase price and the resale value, taking into account all associated costs, including the deed, taxes, fees, and renovations.
One aspect often overlooked by investors is the quality of the installations. Maximiliano Olmi , of Arquitecto x Hora, emphasized: “Renovating a kitchen without replacing old plumbing can lead buyers to perceive the renovation as a mere cosmetic change. If the pipes are still made of 70-year-old lead, buyers know they'll have problems at some point. In those cases, the investment isn't recovered, and it can even be a factor in a downward negotiation,” he said.
Therefore, he recommended seeking advice before making improvements and prioritizing those that truly add value to the property.
Analysis
Francisco Altgelt , president of Altgelt Negocios Inmobiliarios, maintained that analyzing the cost per square meter of purchase and improvement is crucial in any flipping transaction. "That calculation is the key to profitability. If the acquisition value plus the investment exceeds the market price of a finished property, there's no business," he explained.
Furthermore, Altgelt warned about the difficulties that renovations can present: “It's difficult to predict the total cost and establish a specific timeframe for a project. Unforeseen events always arise, from structural issues to delays in the delivery of materials. Investors must be prepared to make quick decisions and adjust on the fly without losing control of the budget.”
Construction costs and real examples
The most common renovations include the kitchen, bathroom, and living room. Renovating these three spaces simultaneously can require a minimum investment of $18 million, although some banks offer loans of up to $100 million, and businesses in the sector finance purchases for up to $40 million.
Updating a standard kitchen costs between $8 and $12 million, depending on materials and finishes. Bathrooms range from $6 to $8 million. Upgrading a living room—with paint, lighting, and flooring—costs between $2 and $3 million.
Regarding the impact on resale value, improvements can increase the property's value by 10% to 15%, provided they do not involve major structural interventions.
A couple chooses over-the-sink tiles: improving the backsplash design adds aesthetic value without requiring large investments.
A 45-year-old two-bedroom apartment in Almagro sold 90 days ago for $90,000. After renovations to the bathrooms, kitchen, and balcony, it's now listed for $110,000. In another case, a townhouse in Villa Pueyrredón, purchased for $102,000 six months ago, appreciated 20% after remodeling the bathroom, kitchen, and floors. It's currently listed for $122,400.
Counteroffers are common in the Argentine market and range between 5% and 6%. Therefore, the resale price must include a reasonable margin to avoid affecting expected profitability.
Sell or rent after the renovation?
While the rationale for flipping is geared toward selling, some investors consider holding onto the property and renting it out. Wierzba noted that refurbished units rent well, quickly, and in dollars. "Depending on the area, they can provide a significant monthly rent, maintaining the capital in the property and with the option of appreciation."
Gallo Kaplan, on the other hand, believed that the objective should remain the sale. "If the sale is quick, the return typically exceeds 20% and allows for immediate capital recovery."
Olmi added that successful projects are based on rational decisions. “It's not enough to have good taste or a desire to renovate. You have to understand the type of buyer you're targeting, the construction timescales, and the market rules.”
The investor profile
This strategy isn't designed for traditional savers or those seeking passive income. It requires active management, project oversight, and precise decisions in the event of unforeseen events.
The best results come from strategic vision and market insight. Restructuring allows for value and profitability in dollars in short periods of time.
“Good profitability doesn't depend solely on buying low and selling high, but on making smart decisions at every stage of the process,” Wierzba concluded.
www.buysellba.com
