@Jay Hinrichs Agreed, the price of lumber is definitely having an impact on the profit margin for new builds.

This has been great advice.Here are the general themes I am taking away: -Houston Market is unbelievably HOT, due to various factors, margins and cash flow are being squeezed, and even veteran investors are moving cautiously - with that said there are deals to be had, requires patience, diligence, but also speed to action To add to that: My general observation is that, low rates and hedges against inflation is flooding the market with cash, increasing the cost of assets but the rents have not caught up.With that I can see why it will be difficult to BRRR, but shouldn’t the flipping strategy still be effective in this environment, assuming you can cover your purchase premium paid via your charging a premium at your exit.Should Investors be looking to Flip and hold cash for when the market allows buy/hold deals to pencil?

It had good margins where even if the deal went bad I can still come out on top.

( profit margins )Class a and b areas pricing for new construction ranging $450,000 to $700,000Few rough estimatesNew construction ranch styles $450,000 plusNew construction 2 levels styles $530,000 plus additional optional finish basements for new construction $ 20,000 to $40,000 

Margins are thin enough without me making a 10K or 20K underestimation.

Or you wait out the lumber market with the hopes it retreats  thats a big if to.. supply demand is going to keep lumber high.On the 90 home community I am currently building in Oregon we were able to do just that my 2000 sq ft home that was 550k is now 600k and we sold them all.. so its trading dollars and the hyper inflation has been pushed to the buyer we are still making our margins which are not as high as you state pretty tough for us to get that high but we get close.. 

I’m concerned because the margins are slim and it’s at the very top of my budget.

Real quickly your expected profit margin can go away with those types of fixes.  

@Ethan Snyder, a BRRRR is a flip, with much tighter margins.

Been getting 18-22% margin on each build.