Is flipping houses still profitable?

How flip profit is measured

Gross profit is the resale price minus the purchase price. ATTOM divides it by the purchase price to get the gross margin, 21.5% in Q2 2026.

Net profit is what you keep after the renovation and the loan, holding and selling costs. The estimated ROI in our search is the estimated profit as a share of the total project cost. 4 inputs decide it.

• Purchase price: what you pay, set by your offer.
• Estimated ARV: the value after renovation, set by recent sales of renovated homes nearby.
• Estimated renovation cost: the work the condition score points to, plus a contingency.
• Holding and selling costs: loan interest, tax and insurance each month, then agent and closing fees.

A real example from a Homesage.ai search

We counted active single-family houses in Cleveland, Ohio, listed at $100,000 to $200,000. Each had a condition score of Outdated or Poor. Investment Property Search found 56 of them on 2026-10-03. Cleveland had the highest flipping rate of any US metro over 1 million people in Q2 2026, at 10.4% of home sales.

Each count is the same search with one more filter. The estimated ROI is the estimated profit on a flip as a share of its total project cost. That cost includes the estimated renovation plus loan, holding and selling costs.

Only 6 of the 56 houses break even or better at their list prices. Just 2 reach 15%, and none reach 25%. Those cutoffs match the investment potential grades in the search, where Medium covers 15% to 25% and High covers 25% to 35%.

The best of the 56 is a single-family house in Cleveland, Ohio. It is listed at $139,000.

The house is listed $19,635 below its estimated current value. It still fails the 70% rule before any renovation. BiggerPockets' guide to house flipping costs sets the maximum offer at 70% of the after-repair value minus repair costs.

Here 70% of the estimated ARV is $137,366, which is $1,634 below the asking price. The full numbers still show an estimated ROI of 21.4%. Use the 70% rule as a first filter and the estimated ROI as the second check.

Only 2 of 56 Cleveland houses in Outdated or Poor condition clear an estimated ROI of 15% at their list prices.

How to check a flip's profit

1. Start with the estimated ARV. Recent sales of renovated homes nearby set the ceiling. See our guide to AI tools for house flippers.
2. Price the renovation for the house's condition score. Add a contingency for problems the photos do not show.
3. Apply the 70% rule as a first filter. Multiply the estimated ARV by 0.7, then subtract the renovation to get your maximum offer.
4. Add loan, holding and selling costs. Our guide to what it costs to flip a house prices each line on one example.
5. Set a floor for the estimated ROI and skip every deal below it. A search count shows the number of listings in your area that clear it.

What makes flipping houses profitable

Margins are shrinking nationwide. ATTOM's typical gross profit fell from $71,000 in Q2 2025 to $60,526 in Q2 2026. Flips also made up 6.2% of home sales, down from 7.3% a year earlier.

Your metro matters more than the national figure. Among metros over 1 million people, ATTOM's Q2 2026 flipping report found typical margins from 81.5% in Pittsburgh to a 0.3% loss in San Antonio. Dallas posted 1.8% and Austin 2.8%.

The price band moves the margin as well. Homes bought for $100,000 to $200,000 earned typical margins of 28%. The $200,000 to $300,000 band earned 26%, and the $300,000 to $400,000 band earned 20%.

All of these margins are gross. ATTOM notes that flipping veterans put rehab and other expenses at 20% to 33% of the after-repair value. Those costs come out of the gross profit, so a deal needs a wide gap between price and estimated ARV.

Common flipping mistakes to avoid

• Reading gross profit as your profit: ATTOM's typical $60,526 comes before renovation and holding costs. Flipping veterans put those costs at 20% to 33% of the after-repair value, so subtract them first.
• Buying because the price sits below value: Our Cleveland example is listed $19,635 below its estimated current value. It still costs $1,634 more than 70% of its estimated ARV before any renovation, so run the 70% rule first.
• Pricing the renovation from photos alone: A condition score comes from property photos, which cannot show wiring, plumbing or a cracked foundation. Add a contingency and get an inspection before you close.
• Leaving out the months you hold the house: The typical Q2 2026 flip took 161 days from purchase to resale. Price each of those months of loan interest, tax and insurance into your offer.

Estimated values. Not investment advice. Data as of 2026-10-03.

Frequently asked questions