Successful fix-and-flip investing starts with disciplined deal selection. Acquisition price, resale demand, renovation costs, financing expenses, property taxes, insurance, and project duration can all affect whether a promising opportunity produces an acceptable return.
Market selection matters, too. The difference between acquisition and resale prices can vary significantly from one metro area to another—even before considering neighborhood-level conditions.
According to ATTOM’s latest available home-flipping report, 64,348 single-family homes and condominiums were flipped nationwide during the first quarter of 2026. Flips represented 8% of all home sales during the quarter.
The typical flip generated a gross profit of $66,000 and a gross return on investment of 25.4%, a modest improvement from the prior quarter. However, the typical property took 165 days to move from acquisition to resale, and returns remained below their year-earlier level.
Against that backdrop, several markets produced substantially higher gross margins.
The following markets had the highest gross flipping returns in ATTOM’s Q1 2026 analysis among metros with:
ATTOM’s gross ROI figures compare the median acquisition price with the median resale price. They do not represent net returns and do not deduct renovation expenses, financing costs, property taxes, insurance, utilities, broker commissions, closing costs, or other project expenses.
These markets should therefore be viewed as places for further research—not as a guarantee that an individual property will be profitable.
Spartanburg recorded the highest gross flipping margin among the qualifying metros in ATTOM’s Q1 2026 analysis.
The sizable difference between the median acquisition and resale prices may provide investors with room to absorb renovation and holding costs. However, the actual opportunity will vary considerably by neighborhood, property condition, and exit price.
Before pursuing a Spartanburg project, investors should analyze recent renovated comparable sales rather than rely on broad metro-level appreciation. Contractor capacity, permit timelines, renovation scope, and the depth of the buyer pool at the projected resale price should also be confirmed.
Flint produced the second-highest gross return in the Q1 2026 rankings.
Flint’s percentage return was driven partly by its low median acquisition price. That lower basis may make projects accessible with less initial capital, but investors should not evaluate the opportunity on percentage return alone.
The median gross dollar spread was significantly smaller than in several other markets on the list. Major structural work, environmental remediation, mechanical replacements, delinquent taxes, title problems, or an extended holding period could consume a substantial portion of that spread.
Property-level inspections and conservative repair budgets are especially important when evaluating lower-priced homes.
Shreveport ranked third among the qualifying metros.
The market’s relatively low acquisition price and six-figure resale price created a sizable gross percentage return during the quarter.
Investors should still evaluate the local buyer pool at the intended resale price and account for property insurance, flood exposure, taxes, utilities, security, and seasonal maintenance. Older or distressed properties may also require more extensive electrical, plumbing, roofing, or foundation work than an initial cosmetic estimate suggests.
A strong gross margin can provide a useful starting point, but the renovation scope and projected days to resale ultimately determine whether the deal works.
Reading generated one of the largest gross dollar spreads among the top-ranked markets.
The combination of a moderate acquisition price and significantly higher resale price may create opportunities for investors who can accurately identify the improvements buyers value.
Older housing stock can also introduce uncertainty. Investors should carefully evaluate roofs, foundations, plumbing, electrical systems, environmental conditions, permitting requirements, and previous renovations.
Exit values can shift meaningfully between neighborhoods and property types, making recent, property-specific comparable sales essential.
Lancaster reported the largest gross dollar spread among the seven markets highlighted in this article.
The higher resale price may provide more room for renovation and transaction costs, but it can also require a larger acquisition budget and more capital at risk.
Investors should confirm that the finished design, features, and price point align with current buyer demand. Over-improving a property can reduce returns if the neighborhood does not support the projected resale value.
Local contractor availability, municipal approvals, material costs, and realistic marketing time should all be included in the project plan.
Pittsburgh ranked sixth among metros with populations above 200,000 and produced the highest gross margin among metros with populations exceeding one million.
Pittsburgh’s results may appeal to investors seeking a larger market while maintaining a comparatively low acquisition basis.
A metro-wide result does not mean every neighborhood offers the same opportunity. Property values, buyer demand, housing condition, taxes, and resale timelines can vary substantially across the region.
Investors should use block-level comparable sales, realistic repair estimates, and a conservative resale timeline when underwriting a Pittsburgh project.
Pensacola was the only Florida metro among the seven highest-margin markets in ATTOM’s Q1 2026 ranking.
The gross spread may offer room for improvements, but Florida projects require careful attention to insurance and property-level risk.
Investors should evaluate:
Insurance premiums and coverage availability can materially change the economics of a project, even when the acquisition-to-resale spread appears attractive.
Investors who prefer larger metropolitan areas may also want to examine the leading markets with populations above one million.
ATTOM reported the following Q1 2026 gross flipping margins:
Larger markets may offer deeper buyer pools, more comparable sales, and greater transaction volume. They may also involve higher acquisition costs, greater competition, neighborhood-level pricing differences, and more complex permitting or regulatory environments.
The latest data presents a mixed picture.
The typical national gross flipping return increased from 24.7% in Q4 2025 to 25.4% in Q1 2026. This was the first improvement after several quarters of declining returns.
However, the Q1 2026 margin remained below the 29.6% return recorded one year earlier.
The 64,348 completed flips in Q1 2026 were down from:
Although flips represented a larger share of total sales than in the previous quarter, the number of completed projects declined.
The typical flip took 165 days from acquisition to resale, up from 160 days in the previous quarter.
Longer project timelines can increase:
Approximately 38.9% of flipped homes acquired in Q1 2026 were purchased with financing, up slightly from 38.6% in the prior quarter.
The financing structure can materially affect a project’s net return. Investors should model interest, origination costs, third-party fees, draw timing, extension provisions, and the financial impact of possible delays.
A market with a high gross ROI does not automatically offer a high net return.
Consider a property purchased for $150,000 and sold for $270,000. The $120,000 difference represents an 80% gross return on the purchase price. But that calculation does not account for:
If those costs total $90,000, the investor’s profit before income taxes would be substantially lower than the headline gross return suggests.
Gross ROI is useful for comparing markets, but every prospective project requires a complete sources-and-uses analysis.
Before entering a new market, investors should examine more than recent returns.
Determine whether distressed or value-add properties are available at prices that support the intended renovation and resale strategy.
Use recent sales of properties with similar locations, sizes, layouts, conditions, and features. Active listings show current competition but do not establish completed sale values.
Review sales volume, days on market, price reductions, contract cancellations, inventory, and the availability of financing for likely buyers.
Obtain local contractor estimates and include contingency reserves. Labor and material costs can vary significantly between markets.
Research municipal requirements, permit costs, inspection schedules, licensing rules, and whether previous work was completed without approval.
Calculate the actual carrying cost. In some markets, insurance premiums, flood coverage, tax reassessments, or vacant-property policies can materially affect the budget.
Model multiple scenarios, including delays in permitting, construction, inspection, appraisal, and resale.
A high projected resale value means little if few qualified buyers are active at that price point. Investors should evaluate the depth of demand, not simply the highest nearby sale.
Before acquiring a flip, the budget should include:
Investors should also stress-test the project by considering:
A project that only works under the most optimistic assumptions may offer insufficient protection against normal execution risk.
Spartanburg, Flint, Shreveport, Reading, Lancaster, Pittsburgh, and Pensacola produced the highest gross flipping returns among qualifying metros in ATTOM’s Q1 2026 analysis.
These figures show where acquisition-to-resale spreads were strongest during one quarter. They do not predict future performance or establish that every property in those markets will be profitable.
Successful fix-and-flip investing still depends on buying at the right basis, accurately estimating renovation costs, managing the project efficiently, selecting an appropriate financing structure, and maintaining a realistic exit strategy.
CoreVest offers business-purpose fix-and-flip financing for residential real estate investors. Our programs can support eligible property acquisitions and renovations, with loan structures designed around the project and investment strategy. Contact our team to discuss your next opportunity.
This article is provided for informational purposes only and does not constitute legal, tax, investment, financial, real estate, construction, insurance, or lending advice. Market data reflects reported results for prior periods and does not guarantee current or future performance. Gross flipping profits and returns do not account for renovation, financing, holding, selling, or other transaction costs. Every investment involves risk. All CoreVest loans are for business purposes only and are subject to underwriting, credit approval, property eligibility, program requirements, and applicable terms and conditions.
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