Thread by @housing_alex

We @JBREC just surveyed 400+ flippers about #fixandflip conditions in partnership with Flatiron Realty Capital and @SundaeHQ.
Key takeaway: There is a TON of competition for deals right now.
MARKET COMMENTARY THREAD 🧵 ->

#LasVegas flipper: “Market is oversaturated with inexperienced investors due to an increase of “gurus.” Supply is low, demand is high, and prices are inflated 20%+ over ARV. Not sustainable.”

#Phoenix flipper: “Phoenix is a very active market with home prices on the rise. The competition is aggressive.”

#SaltLakeCity flipper: “Everyone wants to buy homes to fix and flip, so they offer a good amount of money.”

#Denver flipper: “Challenging to find homes that are affordable for a flip. Different investors are bidding up houses and holding or renting.”

#FortCollins flipper: “The biggest impact I see is the over-estimating of value by Zillow, Realtor, etc. It's tougher in these markets with a higher price point to explain to people how much work needs to go in to get top dollar.”

#Raleigh flipper: “The biggest challenge is there are no desperate sellers. Everyone knows the market is hot so everyone’s pushing for top dollar. Hedge funds will overpay and first-time investors will overpay.”

#Miami flipper: “Homes are way overpriced, especially when repairs are needed, giving sellers a false sense of security. They are insulted whenever an offer is made below list price.”

#Dallas flipper: “The houses that are available through wholesalers are way overpriced, and most are junk. It’s hard to find a good fix-and-flip home for sale by owner that is in a good enough neighborhood or that is priced to make a profit after the rehab.

#SanAntonio flipper: “I’ve been taking a break. While sales prices are good, it’s hard to acquire a property for the price I need to be able to make a profit.

#Seattle flipper: “Super tight inventory for sales. Some investors are moving toward buy and hold as well, simply due to market growth.”

#OlympiaWA flipper: “Our project was hampered by delays in materials and difficulty scheduling sub-contractors. A remodel that should have taken 5 months took 8-9.”

#EastBayArea flipper: “Fixers are selling for the same price as finished properties.”

#Sacramento flipper: “Fixers are selling for little under the price of finished homes.”

#SanDiego flipper: “I’ve flipped 32 homes in the last five years, but seller price expectations and low inventory have reduced my ability to buy to the point that I’m out of the market now.”

#Chicago flipper: “At these prices, we need to flip quickly so that if the market changes, we don’t get left holding the bag.”

#KansasCity flipper: “It’s a good market for cash flow properties. Houses are in high demand, so if you can find a good deal and fix it fast, it’s a good fix-and-flip market.”

#Baltimore flipper: “Houses are too hard to find, and their values are too high and too close to ARV, so you have a small budget for the repairs.”

#NewYorkCity flipper: “The market is very competitive. Many banks are trying to sell with an existing tenant, which is unacceptable to me.”

#Newark flipper: “The lack of and costs of material plus the prices of houses are destroying our business.”

#WashingtonDC flipper: “Acquisition side is competitive as many new investors have joined. Sales side is pretty solid but not as good as spring 2021 (you could sell properties in one weekend).” END