New Construction impacts on 'Flipping Market'

[Keith Burwell]

First off, I appreciate any input here. How will the market for flipping homes be affected by a hot market for new construction. I would like to begin flipping locally, close to the center of town where the older houses are; however, there is currently a VERY hot market going on within miles (in all directions) of new construction. Will this adversely affect my ability to net significant profit flipping homes? Or is it the same principles as anywhere, you make your money on the purchase.. OR should I simply focus on another area a little further away?

Once again - Newbie here and I appreciate the feedback! 

[Doug W.]

I am seeing more competition from builders who intend to tear down homes that I would intend to flip in their existing footprint. In this case they are willing to pay significantly more than me since they will be increasing the ARV significantly.