Article: "Home Flipping Rates and Profits Drop in Q1 2021"

[Peter Vander Valk]

I just read an interesting article about home flipping statistics: https://nationalmortgageprofes...

It seems that the rate of home flips as a percentage of all home sales, as well as the profit margin for flips, have both have decreased in Q1 this year, with the exception of a few metro areas. I would be interested to hear about the experience of any active flippers here who have noticed this trend in their own businesses, and if you have done anything to pivot your business. How are you finding deals, and what are you doing to extract the maximum profit from your flips?

My wife and I have set a goal to buy our first flip by 6/22/23, so we are still in the early stages of looking. We are looking to invest in Northern NJ. What recent lessons have you learned that would benefit someone who is looking to get into their first flip?

Thank you for taking the time to read and engage!

[Dennis Yosco]

Hey Pete ,

I would say the majority of flips are stopping right now because the deals are harder to find in nj. People want market price for a house that needs a total rehab. It’s getting tougher to find off market deals that fit a flip parameter.

In 2 years I think you’ll be better brrrring a property. We should be in a downturn that would allow you pick up a property cheaper. Fix it and rent it out. In 5-7 years well be back into a higher market again so then you can sell then. If your gonna do a flip do it with in the next 6 months. After that I would wait for a correction. 

To those who say there isn’t a correction coming, explain to me how 24% increase in home values in one year is healthy when the average is 3%.