Properties acquired to build, rehab, fix-up, and then sell are held for sale like inventory in a real estate business and do not qualify for 1031 Exchange treatment. 

Obviously low inventory and low interest rates are a big factor in this.  

Houston Housing Stats October, 2020Houston Real Estate Highlights in October, 2020:• Single-family home sales increased for a fifth consecutive month, surging 29.2 percent year-over-year with 9,287 units sold;• The Days on Market (DOM) figure for single-family homes lowered from 59 to 47 days;• Total property sales shot up 31.5 percent with 11,232 units sold;• Total dollar volume jumped 46.1 percent to $3.5 billion;• The single-family home median price climbed 11.1 percent to $266,685 – the highest median price for an October; • The single-family home average price increased 12.4 percent to $334,996 – the highest average price for an October; • Single-family homes months of inventory registered a 2.4-months supply, down from 3.8 months last October and below the national inventory level of 2.7 months.

At the moment, we're having a horrible inventory crunch.

By the time you are ready to buy in July, it's possible that our inventory might inch higher as people decide that selling is their best option.

There is just no inventory and a HUGE demand for rehabbed owner occupied properties.  

If this trend continues then there is going to be a surplus of inventory because people wont be able to afford the homes and simple economics state that when there is an increase in inventory, prices will come down. 

Our inventory is extremely low (about 2 months worth), so deals are difficult to find and you have to be careful.

This is a question for seasoned flippers and agents out there.Lately, in my market (San Antonio, TX) I have been seeing flippers (my clients and others) getting well above the projected ARV on their flip projects due to the shortage of inventory we have right now, however, appraisals have been coming in significantly below the contracted sales price due to comparables not being as high.What can the flipper or list agent do in these types of situations to prepare the buyer and have a better chance of keeping the sale together?

Given the inventory situation with houses selling way over listing price, what are some current buy formulas you as an investor have adjusted to in order to get offers accepted?