What's Killing Your Fix & Flip Deals Right Now?

[Victoria OHare]

Hey BP community, 

I've been talking with a lot of flippers lately and I'm noticing some recurring themes about what's making deals harder to pencil in 2025. With acquisition costs at all-time highs and profit margins tighter than they've been since 2008, it feels like the old playbook isn't working the way it used to. I'm curious what's hitting your bottom line the hardest right now.

Is it finding deals in the first place? Are you struggling with financing terms that don't pencil? Maybe it's holding costs eating into margins because projects are taking longer? Or labor and material costs that keep creeping up mid-project?

For those of you still actively flipping and staying profitable—what's your secret? Are you sourcing deals differently? Financing creatively? Cutting timelines? I'd love to hear what's working (and what's not) so we can all learn from each other.

Drop your biggest challenge below and let's talk through solutions. 👇

[Andy Sabisch]

For one thing, what is the desired profit that you are looking for.  I know different areas net different amounts but I see people saying they wold not even get out of bed for a $20K deal . . in our book, that is a "do every time" type of deal.  Sure, a $100K home run is great but as things tighten up, that equation may not be as easy as it once was.  If there is money to be made, we take a good look at the deal and making $20,000 rather than waiting for that killer deal to come along works for us.

Deals are still there.  We have found properties that have been on the market for 30+ days that need a good cleanout followed by cosmetics and some focused renos that turn a profit.  Not sure why they sat - often poor pictures, poor listing, unresponsive agent . . . but they are out there.

Permits have been the issue in our area.  It seems that they are taking longer which impacts the projected timeline and hence carrying costs.  Make sure they are factored in and have float built into that time frame.