Real estate investors must stay ahead of market trends to succeed in fix-and-flip projects. These nine insights, based on a survey of 244 U.S. home flippers conducted by LendingOne and ResiClub, reveal key trends for 2025.
1. Likelihood of Taking on a Fix-and-Flip Project
More investors are evaluating whether fix-and-flip projects make sense in 2025.
According to the survey, 79% of home flippers in the Southwest reported plans to take on a fix-and-flip project this year. The chart highlights very likely, somewhat likely, and very unlikely in engaging in a new project. This indicates that most real estate investors still see fix-and-flip opportunities as a way to generate profit.
Investors must assess their financial capacity and market conditions before committing.
2. Average Number of Homes Flipped Per Year
Successful investors track their annual flip volume to set realistic goals.
According to the survey, 62% of Southwest investors flip 1-3 homes per year. The chart highlights units flipped ranging from 1-3, 4-6, 7-9, and 10 or more. This suggests most investors can focus on only a few properties within a calendar year to purchase, fix then flip.
Understanding market volume helps investors refine their strategies.
3. Typical Timeline to Flip a Home
Time management is critical for maximizing profit.
According to the survey, 54% of home flippers in the Southwest take an average of 4-6 months to complete a project. The chart highlights quick flips in less than 3 months, most averaging between 4-6 months with just a few taking 7+ months.] This suggests, once a property is purchased, to have the resources to complete the project within half a year to stay competitive.
Investors must streamline their processes to improve turnaround time.
4. Renovations That Produce the Best ROI
Not all renovations yield the same return on investment.
According to the survey, 56% of investors report that kitchen upgrades provide the highest ROI. The chart highlights cosmetic updates, 18% exterior improvements, 2% structural updates, 7% flooring & painting, 11% bathroom remodels, 6% kitchen upgrades, 56%. This suggests focusing on the top 2-3 upgrades to improve your overall profit.
Focusing on high-ROI renovations maximizes profitability.
5. Home Flippers Who Own Single-Family Investment Properties
Many fix-and-flip investors also hold long-term assets.
According to the survey, 62% of Southwest flippers own single-family rentals. The chart highlights owning 1-10 homes, 11-25 homes, 25+ homes, or none. This suggests a single-family home brings the highest and best use when it comes to a fix-and-flip project.
Balancing flipping with rental investments can create long-term wealth.
6. Investors Planning to Hold and Rent Properties
Some investors are shifting from flipping to holding.
According to the survey, 48% of Southwest investors plan to hold their properties as rentals instead of selling them immediately. The chart highlights holding times of 1-5 years, 6-10 years, 11-20 years, or none. This suggests that with affordability being strained and interest rates not showing signs of dropping soon, fixing up a property and putting it in the rental pool could be a strategy in the short run.
Understanding rental demand can influence exit strategies.
7. Demand for Fix-and-Flips in the Primary Market
Market demand determines profitability.
According to the survey, 17% of Southwest investors see strong demand for fix-and-flips. The chart highlights very strong to very weak. This suggests not all areas of the county are considered a healthy market for fix and flip projects. Make sure to understand the supply and demand of the market you consider investing in.
Investors must align their strategies with local demand.
8. Biggest Challenges Investors Expect to Face
Every market presents obstacles.
According to the survey, 21% of Southwest investors identified interest rates as their biggest concern. The chart highlights interest rates, competition for properties, housing inventory, labor and material costs, and others. This suggests until interest rates relax and supply improves, investors might need to wait until the landscape improves.
Recognizing challenges early helps investors develop solutions.
9. Average Budget to Flip a Home
Costs are rising, making budgeting essential.
According to the survey, 55% of Southwest investors budget an average of $50K-$100K per flip. The chart highlights renovation costs ranging from less than $50K to the high side of $200K. This suggests with material and labor costs still rising, a real estate investor needs to take into consideration what will need to be fixed and if it still makes sense to commit to the project. In some cases, one might need to walk away to stay profitable.
Accurate budgeting ensures profitability in a fluctuating market.
Investing in fix-and-flips requires data-driven decision-making.
If you’d like to receive our investment report to analyze the math behind real estate investments and refine your strategy for 2025, email, text, or call me, I’ll be happy to send it your way.
