Is Home Flipping Making a Comeback? Let's Discuss!

[Michael Calvey]

I just read an interesting article on Business Insider about the potential resurgence of home flipping and the BRRRR method. I'd love to hear your thoughts on this!

Key Points from the Article:
Our very own @DavidMeyer, our housing market expert, and host of the BiggerPockets Real Estate Show believes home flipping and BRRRR are due for a comeback.

Reasons for optimism:
1. Expected Fed rate cuts could lower borrowing costs
2. Bifurcated home price appreciation (renovated homes seeing more upside)
3. Increased profit margins for flippers since early 2023
4. Higher ROI on renovations in 2024 (75%) compared to 2023 (60%)

Potential challenges:
1. Rising labor and material costs
2. Need for conservative underwriting and careful forecasting

Questions for Discussion:
1. Are you seeing these trends in your local market? Any uptick in flipping activity?
2. With the possibility of interest rate cuts, how might this affect your investing strategy?
3. For those actively flipping or using BRRRR, how are you managing increased labor and material costs?
4. What's your take on the risk vs. reward of flipping in the current market compared to other strategies?
5. Looking ahead, do you think we're entering a "golden age" for flipping and BRRRR, or are there still significant headwinds?