2026 Flip Volume Is Up. Margins Are the Tightest in a Decade.
- jfennimore
- 5 days ago
- 1 min read
Here’s a stat worth paying attention to: the leading fix-and-flip market sentiment index just posted its largest quarterly gain in three years, and 71% of flippers say they plan to buy more properties in 2026 than they did last year.
At the same time, ATTOM data shows gross flipping returns have compressed to some of their tightest levels in more than a decade.
More deals are getting done. But the easy money isn’t there anymore.
That combination could make 2026 a year that separates investors chasing volume from those who know how to protect their margins. A few things we’re seeing make a difference:
Flexible Draw Schedules Draw schedules that reflect real-world contractor timelines can help keep projects moving, especially while material costs and labor challenges continue to put pressure on renovation budgets.
Strategic Property Upgrades Energy-efficient and marketable improvements can strengthen a property’s appeal to buyers and potentially support a faster, more competitive resale.
Tax & Financing Strategy Depreciation, the 20% QBI deduction, and potentially deductible financing costs can affect your after-tax return. The key is making sure your financing and tax strategy work together. Always consult your tax professional regarding your specific situation.
In a tighter-margin market, the numbers you protect can matter just as much as the deals you close.
If you’re underwriting a deal right now and want a second set of eyes on the numbers—draw schedule, exit assumptions, or financing structure—reply to this email or grab 15 minutes on my calendar.
No obligation. Just a gut check before you commit capital.
Talk soon,
Jarrod Fennimore
Managing Partner
First Funding Loans
📞 +1 732-991-5216
Comments