What kind of projects are you taking on right now?

Question

Been walking a lot of properties around Middle Tennessee lately, and there’s been an interesting mix of potential flip opportunities. Some have great bones, others need a full gut job, but it’s always fun seeing what’s out there.

For those of you actively flipping right now, what kinds of projects are you enjoying the most? Are you leaning toward quick cosmetic turns or still taking on the bigger rehabs when the numbers make sense? I’m always curious what other investors are gravitating toward in this market.

And for anyone who isn’t flipping at the moment, I’d love to hear what you’re focusing on instead. Always interesting to see how people shift strategies as the market moves.

I love hearing what other people are working on!

Cody Waller · Answer

Still doing the same thing I've been doing for 22 flips in Texas. Cosmetic to moderate rehabs on 3/2 and 4/2 homes in the 150-190K purchase range. Kitchens, baths, flooring, paint, sometimes HVAC or a panel swap if the numbers still work. I stay away from anything structural or foundation, learned that lesson a few flips in.

Right now I've got two going, one in DFW and one in Houston. Both are pretty standard cosmetic scopes, 40-50K in rehab each. SA has been my home base but I've been pushing more into DFW the last couple years because the margins got tighter in San Antonio with too many flippers chasing the same stuff.

I've done a few bigger rehabs where the scope was 60-65K and honestly those are the ones where timelines slip and carrying costs eat the profit. The quick cosmetics where you're in and out in 3 months are where the money actually is for me. Anything over 4 months on hard money and you start watching your ROI shrink in real time.

Bo Smith · Answer

Cody nailed it on the cosmetic sweet spot. I'm in a similar boat -- the 3-4 month flip where you're doing kitchens, baths, flooring, and maybe some mechanical work is where the unit economics actually work right now. Bigger rehabs sound better on paper until you're 5 months in on hard money eating 1.5-2% a month in carrying costs.

Right now I'm focused on deals with solid bones where the rehab is about refresh, not rescue. The projects that take 60+ days past original timeline are the ones that kill profit -- and it's always something unexpected. A permit delay, an inspector failing something you thought was signed off. Any deal where timeline risk is high, I'm passing unless the spread is so good it's worth the pain.

The other thing nobody talks about is which projects actually close. In this market, easier flips move faster because they attract more buyer types. A fully cosmetic 3/2 in good condition sells to owner-occupants, investors, and everyone else. A gut job with systems work only sells to specific buyers. What's the typical holding time you're seeing on your cosmetics right now in Texas?

Bo Smith · Answer

Cosmetic and light-moderate rehabs are where the real money is right now. Cody nailed it -- anything over 60K in scope or 4+ months timeline kills margin on hard money. The carrying costs are the invisible margin eater that new flippers don't account for until they're three months deep and bleeding.

The trick is knowing your market well enough to find properties that fit that 40-50K sweet spot. In Middle Tennessee you've got solid entry points, but you have to be selective. Too many flippers chase the great

Bo Smith · Answer

Middle Tennessee is a solid market right now. I'm gravitating toward whatever has the best spread, honestly. Sometimes that's a quick cosmetic flip, sometimes it's a gut job if the bones are worth it. The numbers have to be clean before the project type matters.

What I'm seeing across markets is that quick cosmetics don't move like they used to. Buyer expectations have shifted. You can't just paint, carpet, and countertops and call it a day unless the market is really weak. Most flips need at least one solid system upgraded -- HVAC, electrical, plumbing, roof -- or a real kitchen/bath refresh. That adds time and cost, but it's the reality of selling in this market.

The bigger play is finding properties where the seller just needs it gone. Those deals don't look pretty on paper, but if you can move them, the margin is usually there. The projects that sit are the ones where you're competing on condition with 20 other rehabbers. The projects that sell are the ones where you own the deal cheap.

Are you finding that the properties with great bones in your area are moving slow, or is the whole market slow right now? And what's your typical hold time on a flip in that market?

Dominic Magallanez · Answer

Typically we search for those SFH 700-1700sqft, 3/1+, ARV of around $225k.

At the realty group i work for we usually rent them of sell them to the end buyer

What kind of projects are you taking on right now?

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