What market would you NOT flip in again?

Question

Been researching markets and I'm curious which cities have you tried flipping in that just didn't pan out?

We all hear about the hot markets where everyone's crushing it, but I want to know where you wouldn't go back. Slow sales? Rehab surprises? Permits taking forever? ARVs that looked good on paper but fell apart?What made you tap out? too much competition, thin margins, holding costs eating you alive?

Trying to learn from the trenches before I pick my next spot. Where would you personally avoid and why?

Cody Waller · Answer

SA is getting there for me. Five years ago I was the only offer on half the deals I looked at, now I'm competing with 10 other flippers on every decent property under 200K. I still close there but I've been shifting more deals to DFW and Houston where the spread is better and stuff actually moves. Permitting is real too, some of the older SA neighborhoods will hit you with historic overlay reviews that add weeks to your timeline.

Bo Smith · Answer

I've walked away from oversaturated flip markets where every investor is competing on the same handful of properties. When there are 15 flippers bidding on one estate sale and comps are moving at k/sq ft, margins disappear. You're not losing margin, you're losing money slower than everyone else.

Slow sales markets are brutal too. A property that should sell in 60-90 days sitting for 150+ days because the buyer pool is thin or the neighborhood is in transition. Holding costs eat everything. I got burned bad on an older neighborhood flip where the area hadn't appreciated in a decade. Beautiful rehab, but ARV wouldn't support the cost I had in it. That's a market I won't touch again -- appreciation is zero, buyers are scarce, and DOM climbs fast.

The other one: markets with aggressive permitting departments. If every renovation requires re-inspections and timeline slippage is standard, your carrying costs double. You can't plan or budget when the city moves at its own pace. Some markets are like that by design.

Cold markets with strong hold-and-rent mentality work better as rentals, not flips. The buy-and-hold crowd is willing to carry a property longer than the flip crowd, so seller expectations are different and exit strategy shifts.

What markets have you been looking at, and what's your biggest concern on the decision?

Warren Ifergane · Answer

From what we’ve seen on the lending side, the markets that tend to cause the most headaches aren’t necessarily the slow ones — it’s usually the highly regulated markets where timelines get unpredictable.

Places where permitting drags out for months, inspections are slow, or there are heavy renovation restrictions can really stretch a flip beyond what most investors underwrite for. When a project that should be a 5–6 month rehab turns into 10–12 months, holding costs can wipe out the margin pretty quickly.

We’ve also seen some challenges in markets where insurance costs, taxes, or HOA complications (especially with condos) start creeping up and eating into the deal after purchase.

Interestingly, a lot of investors we work with have shifted toward secondary markets or suburbs where permitting is more straightforward and timelines are easier to control. The spreads might look slightly smaller on paper, but the predictability of the project tends to make the returns more consistent.

Ken M. · Answer

I'd avoid Seattle. Things have changed, a lot.

Govt intervention.

What market would you NOT flip in again?

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