Are Investors Still Flipping?
Real Estate Agent · Nashville, TN · Member since 2026 · 10 posts · 8 votes
Are Investors Still Flipping?
Most Popular Reply
Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes
3moHey Hailey,
Middle Tennessee, especially around Nashville and the surrounding counties, experienced massive appreciation from roughly 2020 through 2023. During that period, flippers could often buy a property with thinner margins because the market was moving up while they were rehabbing it. Today, appreciation has slowed considerably, so investors can't rely on the market to bail them out if they're wrong on their numbers.
At the same time, costs have gone up across the board. Labor is more expensive, insurance costs have increased, property taxes are higher, and holding costs are significantly higher because of interest rates. A flip that looked like a $50,000 profit a few years ago may now only produce $20,000-$30,000 after everything is accounted for, and many investors don't think that's enough reward for the risk.
Another factor is buyer affordability. End buyers are much more payment-sensitive than they were a few years ago. Even if home prices haven't dropped dramatically, higher mortgage rates have increased monthly payments, which can slow resale timelines and create uncertainty for flippers.
Ironically, funding isn't really the issue. There is a tremendous amount of capital available for investors right now. Hard money lenders, DSCR lenders, debt funds, and institutional capital providers are all competing for deals. Wall Street has poured billions into the investor lending and non-QM space because they're looking for yield.
What is the feedback you are receiving from your buyer's list?
18 Replies
- Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes3mo
Hey Hailey,
Middle Tennessee, especially around Nashville and the surrounding counties, experienced massive appreciation from roughly 2020 through 2023. During that period, flippers could often buy a property with thinner margins because the market was moving up while they were rehabbing it. Today, appreciation has slowed considerably, so investors can't rely on the market to bail them out if they're wrong on their numbers.
At the same time, costs have gone up across the board. Labor is more expensive, insurance costs have increased, property taxes are higher, and holding costs are significantly higher because of interest rates. A flip that looked like a $50,000 profit a few years ago may now only produce $20,000-$30,000 after everything is accounted for, and many investors don't think that's enough reward for the risk.
Another factor is buyer affordability. End buyers are much more payment-sensitive than they were a few years ago. Even if home prices haven't dropped dramatically, higher mortgage rates have increased monthly payments, which can slow resale timelines and create uncertainty for flippers.
Ironically, funding isn't really the issue. There is a tremendous amount of capital available for investors right now. Hard money lenders, DSCR lenders, debt funds, and institutional capital providers are all competing for deals. Wall Street has poured billions into the investor lending and non-QM space because they're looking for yield.
What is the feedback you are receiving from your buyer's list?
- Real Estate Agent · Nashville, TN · Member since 2026 · 10 posts · 8 votes3mo
Quote from @Travis Main:
Hey Hailey,
Middle Tennessee, especially around Nashville and the surrounding counties, experienced massive appreciation from roughly 2020 through 2023. During that period, flippers could often buy a property with thinner margins because the market was moving up while they were rehabbing it. Today, appreciation has slowed considerably, so investors can't rely on the market to bail them out if they're wrong on their numbers.
At the same time, costs have gone up across the board. Labor is more expensive, insurance costs have increased, property taxes are higher, and holding costs are significantly higher because of interest rates. A flip that looked like a $50,000 profit a few years ago may now only produce $20,000-$30,000 after everything is accounted for, and many investors don't think that's enough reward for the risk.
Another factor is buyer affordability. End buyers are much more payment-sensitive than they were a few years ago. Even if home prices haven't dropped dramatically, higher mortgage rates have increased monthly payments, which can slow resale timelines and create uncertainty for flippers.
Ironically, funding isn't really the issue. There is a tremendous amount of capital available for investors right now. Hard money lenders, DSCR lenders, debt funds, and institutional capital providers are all competing for deals. Wall Street has poured billions into the investor lending and non-QM space because they're looking for yield.
What is the feedback you are receiving from your buyer's list?
Hey Travis! Thanks for the response.
The feedback is a mix of wanting a 6 figure profit and being worried about the current market. I had a deal that would have easily profited $80k and my investor agreed. However, he said that he wanted something that profited $100k+. I'm constantly getting 70% deals and it seems like those aren't even good enough for a lot of investors at the moment. Others say they just don't feel good about flipping right now. I guess they are worried about how long something will sit on the market on the back end. Even though my comps prove that properties are still selling.
That's where my confusion comes from and why I asked my original question. I'm just wondering if others are getting this same feedback or something different!
- Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes3moI've noticed is that many investors are underwriting for a market that may be weaker six months from now, not the market we're in today. Even if the comps support the numbers, they're asking themselves what happens if rates stay elevated or buyer demand softens. I think that's why you're seeing some people pass on deals that would have been no-brainers a few years ago. The capital is there and investors still want to buy, but they're looking for a wider margin of safety than they used to.
Quote from @Hailey Hubbell:
Quote from @Travis Main:
Hey Hailey,
Middle Tennessee, especially around Nashville and the surrounding counties, experienced massive appreciation from roughly 2020 through 2023. During that period, flippers could often buy a property with thinner margins because the market was moving up while they were rehabbing it. Today, appreciation has slowed considerably, so investors can't rely on the market to bail them out if they're wrong on their numbers.
At the same time, costs have gone up across the board. Labor is more expensive, insurance costs have increased, property taxes are higher, and holding costs are significantly higher because of interest rates. A flip that looked like a $50,000 profit a few years ago may now only produce $20,000-$30,000 after everything is accounted for, and many investors don't think that's enough reward for the risk.
Another factor is buyer affordability. End buyers are much more payment-sensitive than they were a few years ago. Even if home prices haven't dropped dramatically, higher mortgage rates have increased monthly payments, which can slow resale timelines and create uncertainty for flippers.
Ironically, funding isn't really the issue. There is a tremendous amount of capital available for investors right now. Hard money lenders, DSCR lenders, debt funds, and institutional capital providers are all competing for deals. Wall Street has poured billions into the investor lending and non-QM space because they're looking for yield.
What is the feedback you are receiving from your buyer's list?
Hey Travis! Thanks for the response.
The feedback is a mix of wanting a 6 figure profit and being worried about the current market. I had a deal that would have easily profited $80k and my investor agreed. However, he said that he wanted something that profited $100k+. I'm constantly getting 70% deals and it seems like those aren't even good enough for a lot of investors at the moment. Others say they just don't feel good about flipping right now. I guess they are worried about how long something will sit on the market on the back end. Even though my comps prove that properties are still selling.
That's where my confusion comes from and why I asked my original question. I'm just wondering if others are getting this same feedback or something different!
- 3moDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
Quote from @Hailey Hubbell:
Quote from @Travis Main:
Hey Hailey,
Middle Tennessee, especially around Nashville and the surrounding counties, experienced massive appreciation from roughly 2020 through 2023. During that period, flippers could often buy a property with thinner margins because the market was moving up while they were rehabbing it. Today, appreciation has slowed considerably, so investors can't rely on the market to bail them out if they're wrong on their numbers.
At the same time, costs have gone up across the board. Labor is more expensive, insurance costs have increased, property taxes are higher, and holding costs are significantly higher because of interest rates. A flip that looked like a $50,000 profit a few years ago may now only produce $20,000-$30,000 after everything is accounted for, and many investors don't think that's enough reward for the risk.
Another factor is buyer affordability. End buyers are much more payment-sensitive than they were a few years ago. Even if home prices haven't dropped dramatically, higher mortgage rates have increased monthly payments, which can slow resale timelines and create uncertainty for flippers.
Ironically, funding isn't really the issue. There is a tremendous amount of capital available for investors right now. Hard money lenders, DSCR lenders, debt funds, and institutional capital providers are all competing for deals. Wall Street has poured billions into the investor lending and non-QM space because they're looking for yield.
What is the feedback you are receiving from your buyer's list?
Hey Travis! Thanks for the response.
The feedback is a mix of wanting a 6 figure profit and being worried about the current market. I had a deal that would have easily profited $80k and my investor agreed. However, he said that he wanted something that profited $100k+. I'm constantly getting 70% deals and it seems like those aren't even good enough for a lot of investors at the moment. Others say they just don't feel good about flipping right now. I guess they are worried about how long something will sit on the market on the back end. Even though my comps prove that properties are still selling.
That's where my confusion comes from and why I asked my original question. I'm just wondering if others are getting this same feedback or something different!
>I'm constantly getting 70% deals and it seems like those aren't even good enough for a lot of investors at the moment.
The usual rule is purchase and rehab of s 70% of ARV, not just the purchase price.
However let's assume prior to rate increases of q2 2022 that purchase price 70% of ARV could work for some buyers, their holding costs have nearly doubled and their rehab costs have increased significantly. Appreciation that helped many purchases is significantly less likely to help going forward.
>Even though my comps prove that properties are still selling.properties selling does not mean they are selling fast. What is your average DOM compared to 2021? Realize this increased DOM is also likely to raise holding costs. It is the double whammy in monthly holding costs have nearly doubled and the duration of being on market has more than doubled in many markets.
It is not surprising that there are not many people who want to purchase at 70% of ARV. I would highly recommend against these purchases in most markets.
Good luck
- Member since 2026 · 23 posts · 12 votes3mo
I would be interested in seeing some of your deals. I am in CA but have some projets in Nashville and want to do more, I have crews and funding setup up.
I get stuff from Canvas and netwoth all the time but don't fully trust their numbers as their rep turnover is high. My agents also invest and get things with 80k spreads ...even a 1M$ spread but it was too big for me.
I flipped a 2/1 last fall in in North Nashville and it didnt move at all for almost 90 days. I had to make it a mid term rental.
I am about to finish an HPR in a few weeks and will be listing it.....the market seems to be more favorable to the tall and skinny.....so we will see. if the same thing happens on that thing it would make me very skeptical.
Someone just called me the other day on an R6 lot but I want to see how this HPR goes before I start another one....so interested in a SFR flip in the mean time.(*note....just noticed you're with canvas ha)
- Real Estate Agent · Nashville, TN · Member since 2026 · 10 posts · 8 votes3mo
Quote from @James Flores:
I would be interested in seeing some of your deals. I am in CA but have some projets in Nashville and want to do more, I have crews and funding setup up.
I get stuff from Canvas and netwoth all the time but don't fully trust their numbers as their rep turnover is high. My agents also invest and get things with 80k spreads ...even a 1M$ spread but it was too big for me.
I flipped a 2/1 last fall in in North Nashville and it didnt move at all for almost 90 days. I had to make it a mid term rental.
I am about to finish an HPR in a few weeks and will be listing it.....the market seems to be more favorable to the tall and skinny.....so we will see. if the same thing happens on that thing it would make me very skeptical.
Someone just called me the other day on an R6 lot but I want to see how this HPR goes before I start another one....so interested in a SFR flip in the mean time.(*note....just noticed you're with canvas ha)
Yes, I am with Canvas Forum! I don't think our rep turnover is high, but sales agents do move into acquisitions quite frequently so that could be why you feel that way.
- 3moJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
@Travis Main "which can slow resale timelines and create uncertainty for flippers" - We got into this when we flipped our first property last year (listed in late summer).
On top of that the pool of buyers were qualified but cash-poor. It was stressful and difficult but we remained profitable. I'll never do a deal that thin again especially in 2026.
- Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes3mo
Quote from @Jaron Walling:
@Travis Main "which can slow resale timelines and create uncertainty for flippers" - We got into this when we flipped our first property last year (listed in late summer).
On top of that the pool of buyers were qualified but cash-poor. It was stressful and difficult but we remained profitable. I'll never do a deal that thin again especially in 2026.
I think that's exactly what a lot of investors are running into right now. The buyers are out there, but many of them are stretching to make the monthly payment work, which makes them much more cautious throughout the process. A few years ago, a thin deal could still work because the market was moving up while you were rehabbing and marketing the property. Today, that margin for error is a lot smaller.
The fact that you still came out profitable is a win, but I completely understand why you'd be hesitant to do another one with that little cushion. It only takes a few extra months of holding costs, a price reduction, or a repair request during inspection to eat through a lot of profit. That's been one of the biggest themes I've been hearing from investors lately. Most aren't necessarily buying fewer deals, they're just requiring a much larger margin of safety before they're willing to pull the trigger.
- 3moJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
@Travis Main Exactly! And there's rumors floating that the FED may actually increase rates again regardless of what the big orange head wants. If that happens it hurts market sentiment and hurts list pricing for flippers.
I'd rather get into a BRRRR deal, hold it as a rental, and put less pressure on the refinance.
- Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes3mo
Quote from @Jaron Walling:
@Travis Main Exactly! And there's rumors floating that the FED may actually increase rates again regardless of what the big orange head wants. If that happens it hurts market sentiment and hurts list pricing for flippers.
I'd rather get into a BRRRR deal, hold it as a rental, and put less pressure on the refinance.
That's actually one of the reasons I've become a big believer in underwriting flips as rentals before I buy them. If the market stays strong, great, I'll take the flip profit. But if rates move higher, buyer demand softens, or the property sits longer than expected, I want to know I have a viable backup plan.
A lot of investors got away from that mindset during the appreciation boom because almost everything sold quickly. Today, I think having the ability to hold and rent the property gives you much more flexibility. Even if the refinance isn't perfect, you're not forced to sell into a weaker market. You can let the property cash flow, wait for better conditions, and make the exit decision on your timeline instead of the market's timeline. That's a much more comfortable position to be in when there's uncertainty around rates and where the economy is headed.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes3moYour comment "My deals make sense and have large enough margins, that's not the issue"
Quote from @Hailey Hubbell:
I feel like I've noticed a decline in investors looking for flips in the middle Tennessee area recently. Some just seem too hesitant to buy anything at the moment. I'm constantly getting single family homes under contract but I'm having a hard time finding serious buyers. My deals make sense and have large enough margins, that's not the issue. I can deliver exactly what the buyer is asking for but when it comes time to actually purchase, they get cold feet. And when I try to find new buyers, no one seems to be looking for off market property in this area right now. Is it the market currently holding people back? Or have investors just found other strategies that are working better than flipping right now?
Apparently it IS an issue. - 3moShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
Yes. people are still flipping. In fact, a lot of people stopped flipping over the past couple of years so the people that are still flipping right now seem to be the people who are good at it. I currently have 7 flips going on right now.
- Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes3mo
Listen to your buyers. If the deal is not selling, you are not finding good deals. And with all the perceived risk in the market today, marginal deals don't work.
So yes, flippers are out there. But, since we are the one taking all the risk, we are generally not willing to put hundreds of thousands of dollars at risk because you think we can make $80k.
- Real Estate Agent · Nashville, TN · Member since 2026 · 10 posts · 8 votes3mo
Quote from @Evan Polaski:
Listen to your buyers. If the deal is not selling, you are not finding good deals. And with all the perceived risk in the market today, marginal deals don't work.
So yes, flippers are out there. But, since we are the one taking all the risk, we are generally not willing to put hundreds of thousands of dollars at risk because you think we can make $80k.
The deals are selling! I guess I didn't explain properly in my original post. My brokerage has the properties under contract and any agent within our brokerage can bring a buyer to the table. Other buyers are loving these deals so I'm wondering why my buyers don't. I'm sorry for the confusion.
- Lender · United States · Member since 2026 · 14 posts · 6 votes3mo
Flipping is still happening, it's just that the margin of safety people need has gone way up.
Travis nailed it. The 2020-2023 market trained a lot of investors to accept thinner margins because appreciation was doing half the work. That's gone now. So what used to feel like a solid deal feels risky when you actually stress test it.
A few things I see killing deals at the finish line right now:
**The $100K threshold is real but mostly psychological.** Investors who want $100K+ on a flip aren't necessarily being unreasonable, they're pricing in the things that can go wrong. An extra 60 days on market, a price reduction, a surprise inspection repair request. On a $20-30K profit deal any one of those wipes you out. On an $80-100K deal you can absorb it.
**Days on market is the hidden number.** Your comps proving properties are selling is good. But what's the average DOM compared to 2 years ago? If it's gone from 18 days to 55 days that's an extra 5-6 weeks of hard money interest, insurance, taxes and utilities that wasn't in anyone's original underwrite.
**The capital side is often the hidden blocker.** A lot of investors sitting on the fence aren't just scared of the market, they're quietly running out of runway. If their down payment and rehab float is coming from personal savings or expensive revolving credit, every week of uncertainty costs them real money. When the capital structure is tight, hesitation makes total sense.
Jaron's point about underwriting flips as rentals first is the right move in this environment. If the deal only works as a flip it's a fragile deal. If it works as a rental too you've got options, and options give you the confidence to actually pull the trigger.
- 3moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 122 votes
Quote from @Hailey Hubbell:
I feel like I've noticed a decline in investors looking for flips in the middle Tennessee area recently. Some just seem too hesitant to buy anything at the moment. I'm constantly getting single family homes under contract but I'm having a hard time finding serious buyers. My deals make sense and have large enough margins, that's not the issue. I can deliver exactly what the buyer is asking for but when it comes time to actually purchase, they get cold feet. And when I try to find new buyers, no one seems to be looking for off market property in this area right now. Is it the market currently holding people back? Or have investors just found other strategies that are working better than flipping right now?
@Hailey Hubbell
I think there are still plenty of investors flipping, but many are being much more selective than they were a few years ago. Higher financing costs, tighter margins, and slower resale timelines mean buyers are scrutinizing deals more carefully. I've also noticed some investors shifting toward BRRRR strategies where the long-term cash flow helps offset market uncertainty. - Flipper/Rehabber · Member since 2026 · 10 posts · 3 votes3moIts tough right now with the rates not coming down for BRRRR. we're only doing a lot less this year compared to last year
- Member since 2026 · 5 posts · 5 votes2mo
Hey Hailey,
I truly believe that investors want to continue to flip houses but are seeing slim margins especially in the middle Tennessee area. As agents I think it is our job to lead our investors in the right direction while being 100% transparent. We have a ton of new investors trying the market who need to experience their first flip.
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