When I talk with investors who are actively flipping, some are finding deals that work really well, while others are passing on properties that would've looked attractive a year or two ago.
And it's not always the purchase price.
Sometimes it's the rehab budget, the ARV, or simply how much cash they need to bring to closing.
What interests me is how differently experienced investors approach the same market. Some are getting more selective, while others are finding ways to structure deals that still make sense.
For those actively flipping in 2026, what's been the biggest challenge in getting a deal to pencil out?
Finding the right purchase price, keeping rehab costs under control, or getting financing that makes the numbers work?
Also curious what markets you're seeing the best opportunities in right now.
Great question, Frankie. I think financing is one of the biggest factors that can make or break a deal, especially when you factor in rehab costs, holding expenses, and unexpected repairs.
From the business funding side, I’ve noticed how important it is for investors to have access to capital before the right opportunity comes along. Having business lines of credit or other funding options available can provide flexibility without tying up all their cash reserves.
But at the end of the day, the numbers still have to make sense. Even great financing can’t turn a bad deal into a good one.
I’m curious, are you seeing more investors walk away from deals because the profit margins aren’t there, or because they can’t secure the financing they need?
I don't flip, so I'll answer this from the hold side, because that's where the numbers still work for me. In Memphis I buy single-family under $100K, put $30-40K into the rehab, and the ARV lands $180K-$265K. On a flip, that spread has to cover purchase, rehab, carrying costs, and selling costs, and then the profit has to justify six months of risk. On a hold, the same spread gets pulled out at a 70-80% DSCR refi and the house keeps paying. If the flip math is too thin in your market, run the same deal as a BRRRR hold and see which one actually pays you for the risk.
I think rehab costs and the ARV are two of the biggest factors right now. Even if the purchase price looks attractive, unexpected renovation expenses or a lower-than-expected resale value can quickly shrink the profit margin. Financing also plays a big role in how much flexibility an investor has to make the numbers work.
Are you finding that investors in your market are struggling more with acquisition costs or keeping the overall project budget on track?
The deals that still work tend to be ones where the rehab scope is clear before the offer, since purchase price is only part of the margin. Late or high contractor bids change the math fast. Are you seeing more investors pass because of rehab costs or because of resale prices?