This article was written by our expert who is surveying the industry and constantly updating the business plan for a house flipper.
In October 2025, house flipping remains viable, but margins are tighter and vary strongly by location.
Returns concentrate in specific Midwest and Northeast markets, timelines average just over five months, and financing costs are the key swing factor for profitability.
If you want to dig deeper and learn more, you can download our business plan for a house flipper. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our house flipping financial forecast.
National gross ROI averages about 27–30% in 2025, but top metros exceed 80–100% while several Sun Belt and Mountain West markets hover near breakeven. Typical hold time sits near 166 days, and higher rates plus elevated holding costs compress margins to multi-year lows.
Your edge as a new house flipper comes from disciplined acquisitions, accurate repair estimates, contingency planning for labor/material delays, and local knowledge of permit rules and buyer preferences.
| Metric | 2025 Snapshot (Oct) | What it means for a house flipper |
|---|---|---|
| Average gross ROI | ~27–30% nationally | Underwriting must target higher spreads to cover financing, holding, and overruns. |
| Top-ROI metros | Pittsburgh, Scranton, Buffalo, select Michigan/Maryland markets (80–100%+) | Prioritize secondary metros with affordable entry prices and strong end-buyer demand. |
| Low-ROI markets | Parts of TX; MT near 1–5% | Deals require below-market buys or creative exit (flip-to-rent) to pencil. |
| Timeline | ~166 days purchase→resale | Schedule buffers for permitting, inspections, and contractor availability. |
| Median gross profit | $66k–$73k per flip | Net profit shrinks with higher rates/insurance/taxes; watch margin, not dollars. |
| Inventory trend | Fewer distressed/undervalued listings vs. last year | Expect more competition; expand search radius or move up the rehab curve. |
| Rate environment | Mortgage and hard-money costs elevated | Shorter holds and faster rehabs protect IRR; rate buydowns can aid exit. |
What is the average ROI for house flipping by region right now?
Average gross ROI is ~27–30% nationwide, with wide regional dispersion.
Top ROI markets (e.g., Pittsburgh, Scranton, Buffalo, select Michigan/Maryland metros) commonly post 80–100%+ gross returns on purchase-to-resale spreads. By contrast, parts of Texas and Montana show 1–5% ROI, reflecting higher acquisition pricing and softer resale deltas.
| Region / Market | Typical Gross ROI | Notes for a house flipper |
|---|---|---|
| National (U.S.) | ~27–30% | Baseline after a multi-year compression in margins; underwriting must be strict. |
| Pittsburgh, PA | ~100%+ (e.g., 106.8%) | Strong spreads on older housing stock; confirm ARV with conservative comps. |
| Scranton, PA | ~100%+ | Affordable entry prices enable larger value-add; watch days-on-market in winter. |
| Buffalo, NY | ~90%+ | High ROI but seasonal listing patterns affect exit timing. |
| Select MI / MD metros | ~80%+ | Neighborhood selection is critical; school zones move comps. |
| Texas (some submarkets) | Low single digits | New-build competition and insurance/tax burdens compress spreads. |
| Montana | ~1–5% | Sparse comps and high carrying costs; consider hold-to-rent contingency. |
Which markets showed the fastest growth in flipped values over the last 12 months?
Secondary and smaller metros led value growth for flipped homes in the past year.
Rockford, IL and Blytheville, AR posted ~9% overall home price growth, while select ZIP codes like Monticello, LA recorded jumps up to ~43% year-over-year; top flip ROI cities included Pittsburgh, Shreveport, Scranton, and Buffalo.
| Market | YoY Price/Flip Value Trend | Why it matters for a house flipper |
|---|---|---|
| Rockford, IL | ~+9% home values | Rising ARVs support thicker spreads if purchase discounts are secured. |
| Blytheville, AR | ~+9% home values | Entry prices remain low; depth of buyer pool must be tested. |
| Monticello, LA (ZIP-level) | Up to ~+43% YoY | Exceptional local surge; verify sustainability and appraiser acceptance. |
| Pittsburgh, PA | Top-tier flip ROI | Older stock + strong buyer demand = repeatable value-add plays. |
| Shreveport, LA | ~104% ROI | Attractive spreads; confirm resale velocity and insurance costs. |
| Scranton, PA | ~104% ROI | ARV validation critical due to block-by-block variability. |
| Buffalo, NY | ~91% ROI | High gross margins; winter listing strategy is key. |
How long does a flip take from purchase to resale today?
Typical end-to-end time is about 166 days (≈5.5 months).
Expect 1–2 months for acquisition/closing and scopes, 1–3 months for renovation, and 1–2 months for marketing, appraisal, and closing; pre-ordering materials and locking contractors can shave weeks.
| Stage | Typical Duration | Execution tips for a house flipper |
|---|---|---|
| Deal sourcing & underwriting | 2–4 weeks | Use strict ARV rules and repair cushions before making offers. |
| Closing & permits | 2–4 weeks | Start permit packs during escrow to compress day-1 start. |
| Renovation | 4–12 weeks | Lock trades early; sequence demo-rough-finish to avoid idle days. |
| Staging & listing | 1–2 weeks | Photography and pricing strategy aligned to comps and seasonality. |
| Negotiation & escrow | 3–5 weeks | Pre-clear inspection items; consider rate buydowns to widen buyer pool. |
| Total typical | ~166 days | Add buffers for inspections, appraisals, and supply delays. |
| Accelerators | — | Material pre-buy, reliable GC bench, clear scope, and weekly cadence. |
How have mortgage and hard-money costs changed profitability in the last year?
Higher borrowing and holding costs pushed profit margins to multi-year lows despite steady dollar profits.
Median gross profit sits around $66k–$73k per flip, but percentage margins are at a ~17-year low because rates, insurance, taxes, and days-on-market increased; heavily leveraged projects feel the squeeze most.
| Cost Driver | 2024 → 2025 Trend | Implication for a house flipper |
|---|---|---|
| 30-yr mortgage rates | Elevated/volatile | Exit buyers face affordability friction; consider buydowns/credits. |
| Hard-money rates & points | Higher on average | Shorter hold and faster rehab protect IRR; avoid scope creep. |
| Carrying costs (tax/ins/HOA) | Up | Budget extra 1–2 months of carry in base case. |
| Median gross profit | $66k–$73k | Dollar profit can mislead; track margin % and IRR per day. |
| Gross margin % | ~17-year low | Demand deeper discounts at purchase or reduce rehab scope. |
| Refi/bridge options | Tighter | Pre-approve back-up financing; plan flip-to-rent if exit slows. |
| Cash buyer share | Stable to up | Cash reduces interest drag; partner or syndicate where sensible. |
What renovation budgets work best, and which upgrades add the most value?
Profitable flips typically allocate $30k–$60k to renovations, scaled by market and scope.
Kitchens, bathrooms, energy efficiency, curb appeal, and light floor-plan fixes rank highest for resale impact; cosmetic refreshes beat heavy structural reworks in today’s tighter spread environment.
- Kitchen: mid-range refresh (cabinets, counters, lighting) with durable finishes.
- Bathrooms: modern tile, efficient fixtures, clean glass enclosures.
- Energy upgrades: HVAC tune/replace, smart thermostat, efficient appliances.
- Curb appeal: paint, landscaping, mailbox/door hardware, exterior lighting.
- Layout: remove non-load-bearing walls to open living/kitchen sightlines.
You’ll find detailed market insights in our house flipping business plan, updated every quarter.
How does the supply of distressed or undervalued homes compare to last year?
Inventory of distressed/undervalued deals is tighter than last year.
Competition rose as more investors pursued the same properties, pushing flippers toward smaller metros, older stock, and heavier rehabs to find spreads.
| Inventory Aspect | 2025 vs. 2024 | Operational takeaway for a house flipper |
|---|---|---|
| REO/foreclosure pipeline | Lower availability | Build direct-to-seller channels and agent relationships. |
| Off-market leads | More competition | Use targeted mailers, driving-for-dollars apps, and local wholesalers. |
| As-is listings on MLS | Lean | Automate alerts for price drops; act quickly with pre-approved terms. |
| Light-rehab deals | Scarcer | Be ready for medium rehabs where spreads remain. |
| Heavy-rehab opportunities | More common | Require stronger crews and contingency (10–15%+ of budget). |
| Competition intensity | Higher | Widen search radius; consider tertiary neighborhoods with improving stats. |
| Exit liquidity | Market-dependent | Stage well and price to comps to preserve velocity. |
Which current regulations or zoning changes affect house flipping opportunities?
More cities are tightening rules on rapid resales, permits, and fees.
Some jurisdictions introduced anti-flipping taxes, minimum hold periods, stricter inspection/permit steps, or caps on resale markups; diligence on local code timelines is now a prerequisite for any acquisition.
We cover this exact topic in the house flipping business plan.
Align scopes to what your local permitting desk clears fastest.
Maintain a compliance checklist for each municipality you target.
Who is buying flipped homes right now?
Millennials, young families, and remote workers lead demand for turnkey flips.
First-time buyers priced out of new builds prefer renovated, energy-efficient homes with predictable near-term maintenance; suburban and close-in secondary markets attract the broadest buyer pools.
- Millennial/Gen-Z first-time buyers wanting move-in-ready finishes.
- Families trading up for space and school districts.
- Remote and hybrid workers prioritizing home offices and connectivity.
- Downsizers seeking efficient, low-maintenance layouts.
- Relocators to affordable secondary metros with strong job bases.
How are labor shortages and material costs affecting timelines and margins?
Labor scarcity and cost volatility still stretch schedules and squeeze spreads.
Lumber, roofing, and HVAC have seen fluctuating prices, while skilled trades remain capacity-constrained; reliable GC relationships and pre-buying key materials shorten the critical path.
This is one of the strategies explained in our house flipping business plan.
Protect margin with 10–15% contingency, clear specs, and weekly site walks.
Sequence trades tightly and avoid scope creep to control carry.
What risks increased most recently, and how do experienced flippers mitigate them?
The biggest rising risks are margin compression, exit delays, and policy shifts.
Seasoned house flippers counter with conservative ARV assumptions, wider repair cushions, faster scopes, and flexible exit plans (flip-to-rent when DOM extends).
- Underwrite with lower ARV and higher carry (stress-test +2 months).
- Lock financing and contractors before close; keep a back-up crew.
- Stage professionally and price to comps to shorten DOM.
- Use inspection pre-lists to pre-empt retrades and repair credits.
- Have DSCR/bridge options to convert to rental if exit stalls.
Which technology and data sources work best to find profitable flips?
Deal flow now depends on data automation and targeted outreach.
MLS scraping/alerts, AI-assisted valuation, and investor tools like DealMachine, PropStream, and Roofstock help identify motivated sellers and price trends; pairing digital leads with local agent intel raises hit rates.
It’s a key part of what we outline in the house flipping business plan.
Track days-on-market by micro-neighborhood and set instant alerts for price drops.
Standardize ARV and rehab calculators across your pipeline.
How do macro indicators (inflation, housing starts, jobs) shape near- and long-term prospects?
High inflation and soft housing starts temper short-term flips, while stable employment supports the buyer base.
Near term, rates and affordability keep margins tight; long term, migration to affordable secondary markets sustains opportunity for disciplined house flippers.
| Indicator | 2025 Read (Qualitative) | Flip impact and strategy |
|---|---|---|
| Inflation | Elevated vs. pre-2020 | Costs and mortgage rates remain sticky; demand deeper buy-side discounts. |
| Housing starts | Plateaued / cooler | Less new-build competition in some markets; focus on dated resales. |
| Employment | Stable but mixed by sector | Local job trends drive micro-market exits; watch employer announcements. |
| Rates & credit | Tight and volatile | Shorter cycles, smaller scopes, and rate-buydown exit tactics. |
| Migration | Toward affordability | Secondary/tertiary cities with amenities outperform on DOM and ARV. |
| Consumer confidence | Range-bound | Stage quality and price precisely to comps to maintain velocity. |
| Local policy | Tighter in some cities | Budget time/fees; avoid areas adding anti-flipping taxes unless spreads are exceptional. |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Starting a house flipping business requires tight underwriting, repeatable renovation playbooks, and local regulatory awareness.
Use the tables above to benchmark ROI, timelines, and costs, and adapt your strategy to the specific dynamics of each submarket.
Sources
- FairFigure — House Flipping Statistics
- National Mortgage Professional — Margins Hit 17-Year Low (Q2 2025)
- Realtor.com — Most Profitable Cities for Flippers
- Realtor.com — Top Markets for Home Flippers
- DealMachine — House Flipping Timeframes
- REsimpli — House Flipping in Real Estate (2025)
- Yahoo Finance — Flipping Margins at 17-Year Low
- Lima One — ROI in Fix-and-Flip
- SparkRental — Hottest Real Estate Markets
- Real Estate Skills — Best Places to Flip Houses
-House Flipping Startup Costs: What to Budget First
-Holding Costs in House Flipping: A Complete Guide
-How to Finance a House Flip in 2025
-Is House Flipping Still Profitable?
-Is House Flipping Worth It for Beginners?