House flipping in 2025: margins tighter, opportunities smarter?

Question

Hey Everyone,

Curious how everyone’s approaching flips in this market. Recent data shows U.S. home flipping volume has dropped to the lowest level since 2018, even though flips still make up about 7–8% of all home sales. Typical gross profits are hovering around the mid–$60Ks with ~25% ROI before expenses, and average hold times are roughly 5–6 months. At the same time, reports point out that the best percentage returns are often in Midwest and Northeast markets, while some Southeast metros and parts of Georgia are leading in flip activity.​

Given tighter margins and longer days to complete a project, how are you all adjusting?

• Focusing on certain regions or price bands?
• Doing lighter value-add vs heavy rehabs?
• Changing your buy box or target ROI?

Would love to hear what’s actually working for you on the ground in 2025

Peter Mckernan · Answer

I agree with Joe, the mobile homes are great and have become a focus of a lot of flippers to add in an extra project while flipping to make sure their crews are working or making a little extra profit.

That being said, the 2017-2019 markets resemble a lot of this market with inventory, rates (fluctuating) and everything else. The 2018 Q3-Q4 had rates for from about 4.25%-5.5% in a rapid rate and the market froze for a little bit. Also, properties sat on the market for longer and sometimes only got one offer, or sometimes none for months. The numbers you run if you want to use a baseline off the 70% rule should really now be more like the 50% rule to add in longer hold times, lower ARV, increased inventory and all the other conditions people are experiences across the US.

Chris Seveney · Answer

its because real estate is not appreciating in a crazy manner and its harder to make money. Between finding decent contractors (good luck), getting deals (harder too) and then borrowing has increased, we are back to a more "normal" business cycle in my opinion. There is still plenty of opportunity out there.

Joe Homs · Answer

@Andy Gonzales flipping has always been a numbers game. I have added mobile home flips these past few years to my game plan. Less money to aquire, less money to rehab, but about the same or more profit on the flip.

Good Investing...

Andy Gonzales · Answer

That's smart portfolio diversification, mobile home flips really do hit that sweet spot with lower acquisition/rehab costs while keeping (or boosting) the profit margins.​ Love hearing how you're adapting the numbers game to work even harder for you

House flipping in 2025: margins tighter, opportunities smarter?

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