Q3 flipping activity hit 6.8% of U.S. home sales (lowest since 2018), gross profits $60,437 (-7.5% YoY), ROI 23.1% weakest since 2008 from higher acquisition/rehab costs. Volume down 11% QoQ, but Midwest/South flippers hitting 30%+ ROI on undervalued + tight scopes.
Flippers adapting successfully:
Buying 20-30% below market
Over-budgeting rehab 15-20%
Shorter timelines, smaller scopes
How are you adjusting buy boxes/timelines in this environment? What's your market/ROI looking like?
Lender · Boston, MA · Member since 2021 · 125 posts · 64 votes
8mo
For me the primary comp must be very close proximity and very recently sold (<3mo) and then I will find other supporting comps, but staying hyper local and making sure the neighborhood has somewhat low DOM helps. There are lots of areas where stuff is still moving quickly.