The surprising math behind “lipstick flips”

Itay Simchi stumbled onto a faster way to flip by accident.

The Cincinnati investor at Proven House Buyers had planned a full three-month rehab on a run-down property. But before the crew could begin, a buyer made an enticing offer—if Simchi could wrap up a few cosmetic updates in three weeks.

“I ran the numbers,” he says. A full rehab would’ve earned $10,000 to $15,000 more. But selling early meant less time, less risk, and a lot less work.

He took the deal, closing in 21 days for $21,000 in profit.

“It was the easiest flip we’d ever done,” he says. “It made me rethink everything.”

Now, Simchi aims to finish most projects in about three weeks, netting 70% to 80% of the usual profit in a third of the time. “We stopped trying to make every house perfect,” he says. “Instead, we focused on things that truly make a difference: paint, roof, curb appeal, kitchen. Less renovation, more ROI really works.”

The new way to flip

Cosmetic makeovers, aka “lipstick remodels,” used to get a bad rap. But today’s flippers face a different market: Returns that once hovered between 40% and 60% have shrunk. By late 2025, average flip profits had fallen to 23.1%, according to ATTOM—the slimmest margins since 2008. With renovation costs high and resale prices under pressure, investors started trimming timelines and skipping the biggest renovation bottlenecks to make the math add up.

“Major remodels often involve permits, multiple contractors, and months of delays,” says Derek Shewmon of HOMEstretch. That’s why he lives by what he calls the “90% rule,” focusing on features with the most square footage (walls and floors), which allow him to wrap up renovations in just five to seven days.

Others are scaling back upgrades to keep homes affordable for cash-strapped buyers. Austin Glanzer at 717 Home Buyers recently purchased a house in Pennsylvania for $172,000 and “intentionally chose a lighter rehab instead of an overhaul to not push the price beyond what today’s buyers can afford.”

Some flippers have gone even leaner with “wholetailing,” a mashup of wholesaling and flipping where they buy distressed properties off-market, make minimal repairs, and resell quickly to retail buyers looking for a cheap fixer-upper. “There is a market for lower acquisition points,” says Mitch Coluzzi, a real estate investor in Des Moines, IA. “Many DIY buyers want something they can improve themselves.”

Still, lipstick flips can sometimes shine a little too brightly. Buyers may fall in love during the showing—only to get cold feet when inspections reveal issues like an aging roof or an old boiler.

This is why Simchi lists fast flips “as is” and prices them below what a fully renovated home would command.

“Fast flips only work if buyers know exactly what they’re getting,” he says. If concerns crop up, Simchi will often offer a repair credit, sacrificing a bit of cash to gain something more valuable: time.