Investors over-paying in a hot market. Is it worth jumping in?

[Robert Desmarais]

The Detroit metro market is hot. So hot, every potential flip has a scores of offers so high over asking price that the flip profit potential is minimal. Agents tell me flippers are putting out $100k just to make $15k on a flip. I just bid on a junker $40k BRRRR deal that had 60+ offers, 200 showings and the current offer was $80k on a property that needs $50k of work with ARV at $135k. I've been away from RE for while and looking to get back in. I have cash and I'm looking to build a portfolio of BRRRR rentals and can offer a higher price than flippers, but this market is nuts and it seems even finding 10% in a deal is tough. Zillow estimates 10% appreciation for this market in 2021, but does anyone believe that? One could say this feels like a top.

Is it time to get in, or better to wait until the market gets flooded with REOs and foreclosures to drive the prices down?  Can prices just keep going up? Do these flippers know something I don't, or is it just a market frenzy?  Seems like its either a very precarious time to jump in, or it's the absolute right time.  What do you think?