Ideal timing for flips

[Isa G.]

I was listening to the Bigger Pockets Podcast show 306 and at around the 14-minute mark, they start talking about the importance of flipping in the right part of the market cycle. Brandon mentions it is ideal to flip "on the incline". I assume by "incline" he means when sale costs are starting to rise but before finding deals becomes really difficult. 

My question is two-fold: 

1) Is my understanding of this correct? What else factors into the ideal "market timing" for flipping? 

2) What other local market conditions should I look for to determine if an area is ideal for flipping? 

Thanks!

[J Scott]

Yes, there are parts of the market cycle that are conducive to flipping and parts of the cycle where you are likely setting yourself up for failure.  For any type of transaction real estate strategies, the best times are when value are appreciating and the worst times are when values are dropping.  That said, there are certainly tactics you can (and should) be implementing at different parts of the cycle -- and at the inflection points -- to maximize profits on transactional deals and minimize risk.

For more details, BP has a book on the topic (I'm the author):

https://www.biggerpockets.com/...

And I also did a couple BP podcasts on the topic last year:

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...