A successful fix-and-flip investment requires more than finding an older home and completing attractive renovations. Investors must acquire the property at a supportable price, accurately estimate construction and carrying costs, understand local buyer demand, and complete the project within a realistic timeline.
Market selection remains an important part of that analysis, but the most active market is not necessarily the most profitable. A high number of flips can indicate strong demand while also signaling greater competition for properties, contractors, and buyers.
The national market illustrates that tension. According to ATTOM’s first-quarter 2026 Home Flipping Report:
Those profit and return figures are calculated before renovation, financing, property taxes, insurance, utilities, brokerage commissions, and other expenses. Actual net returns may be considerably lower.
Based on current flipping activity, gross margins, affordability, resale demand, and broader housing-market forecasts, the following markets are worth monitoring in 2026. They are presented in no particular order and should not be interpreted as a guarantee that an individual investment will be profitable.
Pittsburgh recorded the highest typical gross flipping margin among metropolitan areas with populations above one million in the first quarter of 2026. ATTOM reported a gross margin of 85.9%.
The market combines relatively affordable acquisition prices with an established supply of older homes that may benefit from modernization. Employment in healthcare, education, technology, financial services, and advanced manufacturing helps support a diverse buyer base.
Pittsburgh also appeared among Realtor.com’s top housing markets for 2026, which projected growth in both sales and prices.
Older properties may require extensive structural, electrical, plumbing, roofing, or foundation work. Values can also vary considerably among neighborhoods and municipalities within the metro area.
Investors should confirm local permit requirements, municipal inspections, property taxes, and comparable renovated sales before determining an after-repair value.
Buffalo produced the second-highest typical gross flipping margin among large metropolitan areas in ATTOM’s first-quarter analysis, at 84%.
The area’s older housing stock can create opportunities to reposition dated single-family residences and two- to four-unit properties. Entry prices may also be lower than in many larger Northeastern markets.
Winter weather can slow exterior work and increase heating, snow-removal, and property-protection costs. Older homes may also contain outdated mechanical systems, deferred maintenance, lead-based paint, or water-related damage.
Buffalo had one of the country’s highest shares of cash-financed flips during the quarter, suggesting that competition from investors able to close without a traditional financing contingency may be significant.
Virginia Beach generated a typical gross flipping margin of 74.9% in the first quarter of 2026, placing it among the strongest large metropolitan markets measured by ATTOM.
Demand may be supported by the region’s military installations, government employment, tourism, healthcare sector, and proximity to other communities within Hampton Roads. The market includes established neighborhoods where updated homes can appeal to relocating households and local buyers.
Coastal exposure can increase flood, wind, and property-insurance costs. Investors should review flood-zone information, insurance availability, drainage, storm history, and elevation before purchasing.
Military-related relocation can support housing demand, but project timing, location, and price point remain important. A property should be evaluated using neighborhood-level sales rather than metro-wide averages.
Baltimore posted a typical gross flipping margin of 65.9% among large metropolitan areas in the first quarter of 2026.
The city has a substantial inventory of older rowhomes and detached properties that may offer a meaningful difference between their as-is and renovated values. Its employment base, healthcare institutions, universities, transportation network, and proximity to Washington, D.C., can support demand in selected neighborhoods.
Baltimore is highly localized, with property values and buyer demand changing from one block to the next. Investors should carefully review comparable sales, title, permits, code violations, property taxes, ground-rent obligations, and renovation requirements.
Older rowhomes may also have shared structural components or water-intrusion issues that extend beyond the subject property.
Philadelphia generated a typical gross flipping margin of 62% in ATTOM’s first-quarter 2026 report.
The city offers a large supply of older rowhomes and small residential properties, creating opportunities for investors who understand neighborhood-level pricing and renovation requirements. Philadelphia’s employment base, universities, healthcare systems, transportation access, and relative affordability compared with other major Northeastern cities can support resale demand.
Property values can differ materially across short distances. Investors should evaluate the specific block, competing inventory, buyer price point, tax history, rental or resale demand, permits, and construction costs.
Renovations involving older electrical, plumbing, roofing, masonry, or structural systems may cost considerably more than cosmetic upgrades alone.
Cleveland had a first-quarter flipping rate of 12.1%, one of the highest among metropolitan areas with populations above one million.
Ohio also ranked near the top nationally for overall flipping activity. At the state level, ATTOM reported a first-quarter gross flipping return of 35.2%.
Cleveland’s older housing stock and relatively accessible acquisition prices may create opportunities for investors who can renovate properties for owner-occupants or reposition them as rentals.
A high flipping rate can mean substantial competition for viable properties. Investors should distinguish between homes that need manageable renovations and properties with extensive deferred maintenance, title problems, or limited resale demand.
Property taxes, municipal inspection requirements, code compliance, and neighborhood-level vacancy should be incorporated into the underwriting.
Atlanta recorded a 12.3% flipping rate during the first quarter of 2026, making it one of the most active large metropolitan markets in the country. Georgia led all states with an 11.1% flipping rate.
Atlanta’s large employment base, transportation infrastructure, population scale, and extensive suburban market continue to support a broad range of housing demand.
High activity does not necessarily translate into high profit margins. Georgia’s statewide gross flipping return was 23.7%, below several Northeastern and Midwestern markets.
Investors should pay close attention to acquisition basis, competing new construction, days on market, insurance, property taxes, permitting timelines, and the supply of renovated homes at the proposed resale price.
Memphis had an 11.2% flipping rate in the first quarter of 2026, placing it among the country’s most active large markets. Tennessee’s statewide typical gross return was 49.6%, although that figure was lower than a year earlier.
The market’s lower entry prices, established housing stock, logistics economy, healthcare sector, and large rental market can support multiple exit strategies.
Resale demand, rents, vacancy, insurance expenses, and property condition can differ considerably among neighborhoods. Investors should avoid relying on citywide averages or assuming that a property suitable for rental ownership will also appeal to an owner-occupant buyer.
Older properties may require additional reserves for roofing, HVAC, plumbing, electrical, drainage, or foundation work.
Toledo combines a comparatively low entry price with favorable broader housing-market expectations. Realtor.com ranked it fourth among its top markets for 2026 and projected strong price growth, although actual results may differ from the forecast.
Ohio’s high flipping activity and older housing supply may provide opportunities for investors who can deliver move-in-ready homes at attainable price points.
A lower acquisition price does not automatically create a larger return. ATTOM found that properties purchased for less than $50,000 produced a typical gross loss nationally during the first quarter, while homes purchased between $100,000 and $200,000 generated the strongest typical gross margins.
Investors should determine whether a low-priced property needs disproportionately expensive structural or mechanical work and avoid improving the home beyond what local buyers will support.
Grand Rapids was included among Realtor.com’s top housing markets for 2026, with projected growth in both existing-home sales and median prices.
Michigan also produced a statewide gross flipping return of 59.3% in the first quarter, according to ATTOM. Grand Rapids benefits from a diverse employment base and relatively limited housing supply compared with many faster-building Sun Belt markets.
Tight inventory can support resale demand but also make acquisition opportunities more competitive. Investors should avoid overpaying for the project based on expected appreciation.
Seasonal construction conditions, labor availability, older building systems, taxes, and holding costs should be reflected in the renovation schedule and budget.
Some cities may have high flipping activity but relatively narrow gross margins. ATTOM reported that several large Texas markets had among the lowest typical gross returns in the first quarter of 2026:
These figures do not mean profitable transactions are unavailable. They demonstrate that active markets can still present difficult acquisition economics. Greater inventory and seller price reductions may create opportunities, but investors should require a sufficient margin between the total project cost and a conservatively supported resale value.
High-cost West Coast markets may also generate substantial gross dollar profits while producing lower percentage returns. Expensive acquisition prices, labor, permits, insurance, financing, and longer timelines can increase the amount of capital at risk.
A market-level ranking should be treated as a starting point. Before purchasing a specific property, investors should evaluate:
Gross flipping data do not include the complete cost of completing and selling the project. Investors should calculate the expected net return after acquisition, renovation, financing, carrying, and disposition expenses.
The analysis should also include downside scenarios involving a lower resale price, a larger renovation budget, or a longer holding period.
Financing should support the project’s purchase price, renovation scope, schedule, and exit strategy.
CoreVest’s Fix-and-Flip Loan provides business-purpose financing for eligible single-family residences, condos, townhomes, and small multifamily properties. Current published features include:
Experienced investors pursuing multiple properties may also consider CoreVest’s Line of Credit, which establishes borrowing capacity for eligible acquisitions, renovations, refinances, and property aggregation.
Financing availability does not make a marginal project viable. Investors should understand the loan’s interest rate, fees, draw requirements, equity contribution, extension provisions, and total projected carrying cost before closing.
The 2026 fix-and-flip market is highly localized. National profit margins improved modestly during the first quarter, but they remain below year-ago levels, and projects are taking slightly longer to complete.
Several Northeastern and Midwestern markets currently combine stronger gross margins with older housing stock and attainable resale prices. Other markets offer high transaction activity but narrower margins and greater competition.
Regardless of location, successful flipping depends on buying at a supportable basis, controlling renovation and financing costs, understanding the target buyer, and maintaining enough reserves to manage delays or unexpected repairs.
CoreVest provides business-purpose financing for residential real estate investors, including fix-and-flip loans, bridge loans, and lines of credit. Contact our team to discuss an upcoming acquisition or renovation project.
This article is provided for informational purposes only and does not constitute legal, tax, accounting, investment, financial, real estate, construction, or lending advice. Market data and forecasts may change and do not guarantee the performance of any property or investment strategy. Gross flipping returns do not account for renovation, financing, holding, or transaction costs. All loans are subject to underwriting, credit approval, eligibility requirements, and applicable terms and conditions.
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