The biggest headwinds right now are heightened construction costs largely driven by more expensive MEP’s, introduction of more complexed building codes, higher interest rates and opex costs impacting debt coverage which directly impact refinance options.

I think most buy attracted to the cash flow and price point (based on the capital they have available), but over time investors realize they are harder to manage, have higher turnover/expenses, as well as lower appreciation.

Every investor knows — the faster you close and renovate, the higher your ROI. 

Low inventory, inbound migration from higher-cost metros, and cheap financing created the perfect storm: sellers held all the leverage, buyers fought over anything that had a roof, and investors—especially those trying to scale—had to move fast or lose out.But over the past 12 months, something interesting has been happening under the surface: the market is easing.

Interest rates are not high-they are about average (higher than the last 10 years where they were extremely low). 

Opportunity to use 1031 equity for higher income potential.Cons:All units are park-owned, which increases management and repair exposure. 

Hey everyone,Curious how others in the fix-and-flip space are adapting to today’s higher-rate environment.

BUT The points they charge and interest are both way higher than normal, on some deals I ran numbers the points and interest were going to be 20k on properties where the ARV is 100k so you have to get properties at such a low price to make it work that it is so hard.

Between higher rehab costs and tighter inventories, I’ve seen a noticeable uptick in small-scale new builds replacing flips.

That sets up a good cash flow/future higher rents, and able to refinance pull cash out on the ARV.