How is the market where you are?

Investor · Jacksonville, FL · Member since 2025 · 30 posts · 13 votes

I've heard from so many investors that they have put a pause on their flipping business. Simply because rates are higher, homes are not selling, and deals do not work. Are you seeing the same thing in your market? Are you still successfully flipping right now?

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Robert EllisBusiness Member

Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes

got out of flipping to new construction in our market in columbus ohio. licensed general contractor. when interest rates got high single family existing went down by 30% new builds sold at a 6% increase that year which demonstrated the desire and premium that new construction commands. never looking back. total control, rinse and repeat. we can get permits in 28 days. we can buy land cash in 21 days. we can build in 120 days to 140 days and keep moving. super scalable and easy and no risk. we build the same 2-3 Floorplans

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Jared Smith
Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes
1y
My wife and I thought we had an easy opportunity for a double (baseball analogy) with a flip home in Lakeland, TN we were able to get well below market this past summer. Unfortunately, timing was about 2 months late and the market went dormant for larger homes in our area around late August when we had the home finished. Under contract but these buyers are getting a great home, great location, for a good price. Extra 4 months of carrying costs are up most of the margin. So, with that being said, market cooled off for sure the last few months in our area.
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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
I've noticed end of 2024 to heat up and seeing that as 2025 starts. We did get a nasty snowstorm and the artic blast so Jan was calm due to that. I think it'll pick up as we get into Feb. I don' expect it to be a crazy market but better then 2023/2024
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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
1y
I am still helping investors flip, find deals, and get them on the market.. We did a couple recent ones that were on market, fixed them up and got them to market after the remodel with a profit. I am also still buying flips/LTR.. The deal has to make sense and you really need to know the comps to make sure your investment is going to actually make money. Some situations where they (the projects) do not go the way of making the profit as you wanted, but there are still deals out there to be had..
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John Lasher
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Investor · Jacksonville, FL · Member since 2025 · 30 posts · 13 votes
1y
Quote from @Caleb Brown:

I've noticed end of 2024 to heat up and seeing that as 2025 starts. We did get a nasty snowstorm and the artic blast so Jan was calm due to that. I think it'll pick up as we get into Feb. I don' expect it to be a crazy market but better then 2023/2024

Are you actively flipping properties?
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Alan F.
Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
1y
Quote from @John Lasher:

I've heard from so many investors that they have put a pause on their flipping business. Simply because rates are higher, homes are not selling, and deals do not work. Are you seeing the same thing in your market? Are you still successfully flipping right now?

I'm still flipping but I do live ins so only 1 every couple years, mostly San Jose. Margins are high, DOM is exceptionally low but finding them is really hard. Very neighborhood specific.
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Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
1y
got out of flipping to new construction in our market in columbus ohio. licensed general contractor. when interest rates got high single family existing went down by 30% new builds sold at a 6% increase that year which demonstrated the desire and premium that new construction commands. never looking back. total control, rinse and repeat. we can get permits in 28 days. we can buy land cash in 21 days. we can build in 120 days to 140 days and keep moving. super scalable and easy and no risk. we build the same 2-3 Floorplans
[email protected]786-494-6766
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Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
1y
I wouldnt say that Im paused (meaning that Im deliberately waiting), but I have not seen hardly anything in the past year that makes sense. Im still running workups on stuff, but I have not seen any deals that work for me.
Lending as a whole is doing well, but there is definitely more risk in the lending ecosystem right now as borrowers stretch their numbers and get aggressive on margins to keep turning deals. I would definitely say that I'm much more cautious now than a few years ago.
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Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
1y
Quote from @John Lasher:

I've heard from so many investors that they have put a pause on their flipping business. Simply because rates are higher, homes are not selling, and deals do not work. Are you seeing the same thing in your market? Are you still successfully flipping right now?

In Greater Cincinnati, I haven't had a buyer flip a property in 2 years. I don't see numbers work too often, pretty rare, with the exception to sellers circumstances
[email protected]859-443-4952
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1y
Quote from @John Lasher:

I've heard from so many investors that they have put a pause on their flipping business. Simply because rates are higher, homes are not selling, and deals do not work. Are you seeing the same thing in your market? Are you still successfully flipping right now?
I never recommend flipping - something as a slight change in the interest rate markets can completely turn your flip upside down. Financial freedom is all about buying and hold properties for the rest of your life - that's how you get appreciation, cash flow, principal paydown, and depreciation.
[email protected]614-300-7535
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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
1y
We had our first child so we have been on the sidelines for a hot minute. Haven't bought anything since April, 2023.

Starting looking for opportunities last Fall and so far it's been terrible. We have had success buying in the winter, but this time it feels different. Our buy [box] is small but dang it's tough out there. Can't find any low hanging fruit. Haven't found a deal that works for BRRRR. Off market FB leads, MLS, wholesaler doesn't matter. What were doing isn't working.

We're going to start attending local meet-ups again and stay active. We need to build more relationships.
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Zachary DealPro Member
Lender · Member since 2023 · 464 posts · 425 votes
1y
@John Lasher Have you considered the BRRRR strategy? We are seeing a lot of investors have success with this strategy with plans to hold the properties they are rehabbing as rentals for several years before selling. Depending on the ARV some are even able to get out all the funds they used to quickly rinse and repeat
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Quote from @Jared Smith:

My wife and I thought we had an easy opportunity for a double (baseball analogy) with a flip home in Lakeland, TN we were able to get well below market this past summer. Unfortunately, timing was about 2 months late and the market went dormant for larger homes in our area around late August when we had the home finished. Under contract but these buyers are getting a great home, great location, for a good price. Extra 4 months of carrying costs are up most of the margin. So, with that being said, market cooled off for sure the last few months in our area.

You bought a falling knife. Most people have the last 30 months.

It's going to take the pain of another 12 or so months on & off, before people realizing flipping, unless it's in scarce, high value areas just won't work as easily.

Or you'll have to do really costly renovations with proper permitting-- i.e take a 3/1 to a 4/3 to a neighborhood that seeks such size.

Best to keep some cash in it, and own the property as a rental.
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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
1y
@V.G Jason Are you finding it difficult to estimate ARV right now?

Prices are up in our market but the discrepancy between prices, similar specs, and actively listed is weird. It's $15-30k in our target areas. There's either a lot of clueless sellers or my sold comps are too narrow. There's a lot DOM also but I expect during the winter.

As rates have gone up we tightened my sold comps. It's making it hard to find anything worth chasing. Driving by a property today to see if makes sense to walk. It's down the street from our rental which we BRRRR'd two years ago. Asking $89k, probably a $40-50k rehab.
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Quote from @Jaron Walling:

@V.G Jason Are you finding it difficult to estimate ARV right now?

Prices are up in our market but the discrepancy between prices, similar specs, and actively listed is weird. It's $15-30k in our target areas. There's either a lot of clueless sellers or my sold comps are too narrow. There's a lot DOM also but I expect during the winter.

As rates have gone up we tightened my sold comps. It's making it hard to find anything worth chasing. Driving by a property today to see if makes sense to walk. It's down the street from our rental which we BRRRR'd two years ago. Asking $89k, probably a $40-50k rehab.

I keep it conservative, therefore my ARV really isn't that far off. Comps to me no longer play the only role because of rates, seasonality, etc., it definitely fights the arguments on re-fis with the appraiser but I'm noticing there's just a liquidity issue that is skewing things.

I try to essentially start at the floor and work my way up on the ARV as opposed to seeing the highs and working it down.
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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
1y
@V.G Jason That makes sense. I should probably focus less on the highs and lows and aim for that average ARV per location and what buyers/renters are looking for.

I checked out that house. Total disaster. I was able to walk right in. Every room was wrecked, windows broken, HVAC stolen, and the garage was just as bad. Only redeeming quality is location, layout, size of rooms, and vaulted ceilings. Actually checked 3 houses and they were all disasters.

You ever buy and remodel house like that? Seems like a big risk given our experience.

Previous owner bought it for $71k in 2022 (OOS LLC), asking $89k, ARV $135-150k.
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Quote from @Jaron Walling:

@V.G Jason That makes sense. I should probably focus less on the highs and lows and aim for that average ARV per location and what buyers/renters are looking for.

I checked out that house. Total disaster. I was able to walk right in. Every room was wrecked, windows broken, HVAC stolen, and the garage was just as bad. Only redeeming quality is location, layout, size of rooms, and vaulted ceilings. Actually checked 3 houses and they were all disasters.

You ever buy and remodel house like that? Seems like a big risk given our experience.

Previous owner bought it for $71k in 2022 (OOS LLC), asking $89k, ARV $135-150k.

Location is a redeeming enough quality. I have bought 2 of those, offered on plenty. I buy deep though, and don't seem to care to budge on my bid given the scope. Reality is the seller is likely okay with breaking even, but I don't even offer that.
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