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Fix-and-flip businesses are capital-intensive from day one, and the most common mistake new investors make is underestimating renovation costs and holding time. A home that takes two extra months to sell keeps tying up capital and adding carrying costs.
This sample plan shows how a fix-and-flip business models its purchase and renovation costs, prices finished homes for resale, and manages cash flow while properties are being renovated and marketed.
Work through how Anchor Wharf plans its property pipeline and projects three years of revenue. Our Business Plan Toolkit gives you the same financial framework.
Executive Summary
Anchor Wharf offers quality, remodeled residential properties to homebuyers. By revitalizing underperforming properties, we provide move-in-ready homes that combine modern comfort with unique, existing architectural features. In many areas, the housing market has a significant amount of outdated or neglected properties. For many potential homebuyers, the prospect of renovating these properties themselves is daunting, both in terms of time and cost. Anchor Wharf addresses this problem by purchasing underperforming properties, conducting high-quality renovations, and then selling these homes to buyers who desire move-in-ready properties. Our primary target market is the pool of homebuyers who are looking for quality, renovated, move-in-ready homes. This includes first-time buyers, people relocating, and investors looking for rental properties. Our competition comes from other fix-and-flip property developers, new construction homes and private sellers offering as-is properties. Anchor Wharf stands out due to our focus on quality renovations and excellent customer service. We provide transparency in our renovation process, ensuring potential buyers are aware of every upgrade made to the home.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $2,180,000 | $3,342,000 | $3,985,000 |
| Gross margin | 17% | 18% | 19% |
| Net profit / (loss) | $128,300 | $237,000 | $276,400 |
Company Overview
Anchor Wharf is a fix-and-flip business operating in Portland, Oregon. The business was established to serve a growing demand for quality, specialist services in this sector, where many customers are underserved by larger, less responsive providers.
Mission: To deliver consistent, high-quality service to every client, building long-term relationships based on trust and results.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, build an initial pipeline of properties and buyers, reach monthly break-even |
| Year 2 | Grow revenue by 50 to 60 percent, expand service capacity, hire additional staff |
| Year 3 | Consolidate market position, target new customer segments, achieve strong net margins |
Market & Customer Analysis
Industry context
When we last checked (October 2026), real estate, rental and leasing added $4.23 trillion to US GDP in 2025 (US Bureau of Economic Analysis).
Profit on a flip is the resale price less purchase, renovation, holding and selling costs. Many flippers work to the 70 percent rule of thumb: pay no more than 70 percent of the after-repair value, minus the cost of repairs, so about 30 percent of the sale price is left for holding, selling and profit.
Anchor Wharf runs tighter than that. In year one, property costs of $1,809,400 take 83% of $2,180,000 in sales, leaving a 17% gross margin, and the plan does not say why it accepts the thinner spread. By year three the cost share eases to 81% of $3,985,000.
That thin spread makes holding time the risk to watch. The $20,200 of monthly fixed costs needs $118,800 of sales a month to cover at a 17% margin, and each extra month a house sits unsold adds finance and insurance on top. Net profit of $128,300 is 6% of year-one revenue.
Target customer profile
Anchor Wharf's primary customers are homebuyers in the Portland, Oregon area, including first-time buyers, people relocating and investors seeking rental properties, who want a quality, move-in-ready home. These buyers prioritise quality and reliability over lowest price and are willing to pay a moderate premium for a well-renovated home.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Other local fix-and-flip developers | Established brand, wide market reach | Higher price point, less personalised service |
| New construction home builders | Strong national marketing presence | Generic offering, less specialist focus |
| Private sellers of as-is homes | Competitive pricing at entry level | Standardised, less tailored service |
Anchor Wharf's advantage: Specialist focus, personal service, and deep knowledge of the target customer segment are the primary competitive differentiators.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong service quality; clear target market positioning | Weaknesses: Limited brand recognition at launch; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing target market; underserved customer segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic conditions affecting discretionary spend; potential new market entrants |
Sales & Marketing Plan
Anchor Wharf reaches its target customers through a combination of digital marketing, referral programmes, and direct outreach. The primary acquisition channels are local search (Google Maps and organic SEO), word-of-mouth referral from satisfied clients, and targeted paid advertising on social media platforms where the target customer is active.
Pricing approach: Renovated homes are priced at a modest premium to comparable unrenovated homes nearby, reflecting the quality of the renovation work. Each listing sets out the renovation work completed, so buyers know exactly what they are paying for.
Sales process:
- Renovated home listed for sale and marketed online and through local agents
- Buyer enquiries answered and viewings arranged within 24 hours
- Offers reviewed and negotiated within 48 hours
- Purchase agreement signed; earnest money deposit collected
- Sale closed; follow-up contact made with the buyer within one week of move-in
Operating Plan
Anchor Wharf operates from Portland, Oregon with a lean team focused on service delivery quality over volume. Standard operating procedures cover property sourcing, renovation scoping, contractor management, quality review, and sale.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Founder / Managing Director | 1 | 1 | 1 |
| Renovation project managers | 1 | 1 | 2 |
| Administration / support | 0 | 1 | 1 |
Key suppliers and partnerships: Anchor Wharf maintains relationships with a small number of trusted suppliers and subcontractors to ensure consistent service quality and the ability to manage periods of high demand.
Management Team
The founding team of Anchor Wharf brings relevant industry experience and a clear understanding of the target market. The founder has held senior roles in residential property renovation prior to starting the business and brings both technical expertise and commercial knowledge to the leadership of the organisation.
Hiring plan: As the business grows, the priority is to hire people who share the company's commitment to quality and client service. The business will promote from within where possible and invest in staff development to reduce turnover.
Financial Plan
3-year profit and loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $2,180,000 | $3,342,000 | $3,985,000 |
| Property maintenance and management | $1,809,400 | $2,740,400 | $3,227,800 |
| Gross profit | $370,600 | $601,600 | $757,200 |
| Gross margin | 17% | 18% | 19% |
| Salaries and wages | $71,200 | $118,500 | $192,300 |
| Marketing and advertising | $22,400 | $31,800 | $36,900 |
| Other operating costs | $148,700 | $214,300 | $251,600 |
| Total operating expenses | $242,300 | $364,600 | $480,800 |
| Net profit / (loss) | $128,300 | $237,000 | $276,400 |
Break-even analysis:
- Estimated monthly fixed costs: $20,200
- Monthly revenue required to break even: $118,800
- Break-even is projected within the first year of trading.
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