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Flipping houses: How investors are making profits in 2026

Flipping houses profitably in 2026 requires understanding current market conditions, maintaining financial discipline, and applying proven investment strategies. Real estate experts predict a favorable year for house flippers, as slower price growth is making properties more affordable and reduced competition is opening the door to stronger deals. The ROI of house flipping dropped below 25% […]

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Flipping houses profitably in 2026 requires understanding current market conditions, maintaining financial discipline, and applying proven investment strategies. Real estate experts predict a favorable year for house flippers, as slower price growth is making properties more affordable and reduced competition is opening the door to stronger deals.

The ROI of house flipping dropped below 25% in the third quarter of 2025, as per ATTOM. While these numbers don’t look promising, real estate experts are predicting that 2026 will be promising for those venturing into the housing market.

Houses are becoming more affordable due to slower price growth. You may also notice lower interest rates. With less competition from other house flippers, you can expect to find deals with good ROI if you have the right strategies.

What Does Flipping Houses Mean?

The process of flipping houses starts with buying and upgrading a property before you sell it for a profit. Here is what you need to do if you want to make a profit from renovations:

  • Buy a property at a low price
  • Add value to the property through renovations
  • Sell your property high

You should look for distressed properties that you can buy below market value. Most of these houses need a lot of renovations if you want to make a profit.

What Are the Common Mistakes in Flipping?

As you buy and sell homes through the flipping process, you need to be careful. You can make mistakes that cost you your profits. Here are common mistakes you should avoid in flipping:

Overpaying for Property

Some flippers pay the high price for distressed property. They buy them too high and have to cater for renovation costs as well.

When it comes to selling, they get stuck with their property. As time goes by, they have to sell their house at lower prices. If you don’t pay attention to real estate market trends, you’re likely to fall into this pitfall.

Making Excess Renovations

As a flipper, you may sometimes make many improvements to the house based on your own preferences. This situation makes you waste a lot of money; you may not recoup unless you overprice the sale. If you make renovations based on your own tastes, you may fail to appeal to a broader number of buyers in the area.

Poor Marketing

Failing to market your property is another mistake flippers make. First, they may underestimate how their house looks on the listing. Bad photography and staging will often chase buyers away.

How Are Investors Making Profits from Flipping Houses in 2026?

With the right real estate investment tips, house flipping can enhance your investment portfolio. Here are house flipping strategies you should implement if you want to make some money.

Accurate Budget Planning

When flipping your house, consider all the costs involved to avoid bad surprises later. Start with the buying price. It is your first biggest upfront expense.

Next, plan for renovation costs, including:

  • Labor
  • Materials
  • Unexpected expenses for repairs

In addition, don’t forget about holding costs like insurance and loan repayments. Additionally, budget for selling fees, like legal expenses and agent commissions.

Market Research

If you want to be a successful house flipper, do your research. It allows you to stay up-to-date with the real estate market trends. With the right information, you can make offers and counteroffers that reflect the current market conditions.

Evaluate Your Profit Potential

Buyers actively look for renovated, move-in-ready homes. This situation creates high demand for flippers who can deliver.

Use the 70% rule to ensure your flip is profitable. Calculate the amount you should pay for a house by taking 70% of its after-repair value and deducting the projected renovation costs. If you use this formula, you can protect your profit margin.

Get Permits and Approvals

Once you start renovations, pulling permits is necessary. You may need permits for:

  • Plumbing work
  • Roof replacements
  • Electrical upgrades
  • HVAC system replacement
  • Window or door replacements
  • Structural changes like moving walls

You have to get the permits to avoid getting fines. Permits also protect you from risks, such as structural failure.

Pay Attention to Capital Gains Tax

When you sell your assets for more than their cost, you get a capital gain. These gains are taxable. You will pay them depending on how long you hold the asset before selling.

If you hold your house for less than a year before selling, you have to pay for short-term capital gains taxes. Long-term capital gains taxes apply if you hold for more than a year. Don’t hold property if you want to make profits.

Avoid Hidden Costs

Hidden costs can eat into your profits if you aren’t careful. Unexpected repairs, such as structural issues, can show up after you start renovations.

These surprises can inflate your budget. If you see such issues, consider selling to We Buy Houses Memphis. They purchase properties in any condition, offering a fast, as-is sale that can help you recover your investment without additional repair costs.

Frequently Asked Questions

Will 2026 Be a Good Time to Sell?

Real estate markets move in cycles. 2026 may be a good year to sell if there is strong buyer demand and the prices are rising. A favorable sellers’ market makes selling easy.

How Long Does It Take to Flip a House?

It takes about 5-6 months to flip a house. However, the house flipping timeline may vary. As a flipper, you have to follow the clear steps of flipping, like acquisition of the property, financing/permits, renovation, inspections/staging, and resale.

Your property’s post-renovation condition and local market demand both influence how quickly it sells. While holding the property, costs like loan interest and insurance accumulate monthly.

Is Flipping Houses Stressful?

Flipping houses can be very stressful. You have to meet deadlines, select the right contractors, and do everything within budget.

While most house flips are very profitable, you may face a lot of pitfalls that can be overwhelming. When this happens, you need to take a break.

Maximize Your Profits When Flipping Houses

You can enjoy good money after flipping houses, but only if you have proper strategies. You have to put in the time, effort, and resources to ensure you get the renovations right, budget well, and sell for profit.

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2026 Lucid Air Grand Touring Review — Is This $136K EV Sedan Worth It?

AUTONETWORK ON BLACKPRESSUSA — Finished in Stellar White Metallic with the Tahoe Grand Touring interior, this Lucid makes a strong first impression. The shape is sleek and low, but it still feels elegant instead of trying too hard. Features like soft-close doors, powered illuminated door handles, 20-inch Aero Lite wheels, and the Glass Canopy Roof help the car feel expensive before you even start it.

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The 2026 Lucid Air Grand Touring is the kind of luxury EV that makes people stop and ask a simple question: Is this really better than a Tesla Model S, Mercedes EQS, or BMW i7? At $136,150, it has to do more than look futuristic. It has to feel special every time you get in it.

Finished in Stellar White Metallic with the Tahoe Grand Touring interior, this Lucid makes a strong first impression. The shape is sleek and low, yet it still feels elegant rather than trying too hard. Features like soft-close doors, powered illuminated door handles, 20-inch Aero Lite wheels, and the Glass Canopy Roof help the car feel expensive before you even start it.

Inside is where the Air Grand Touring really makes its case. The 34-inch Glass Cockpit Display and retractable Pilot Panel screen give the cabin a clean, modern look that still feels different from other EVs. The Tahoe Extended Leather and Lucid Black Alcantara headliner lifts the sense of occasion, and the front seats are a highlight. They are 20-way power-adjustable, heated, ventilated, and include massage. That matters because luxury buyers at this price expect comfort first.

Rear passengers are not ignored either. You get 5-zone heated rear seating, a rear center console display, and power rear and rear side window sunshades. Add in the Surreal Sound Pro system with 21 speakers, and the Air feels like a true long-distance luxury sedan.

Lucid also gives this car serious EV hardware. The dual-motor all-wheel-drive system, 900V+ charging architecture, and Wunderbox onboard charger are big talking points. Buyers in this segment care about range, charging speed, and everyday ease, not just raw performance. That is where the Lucid continues to stand out.

On the technology side, the Air Grand Touring includes DreamDrive Premium, with 3D Surround View Monitoring, Blind Spot Warning, Automatic Park In and Out, Automatic Emergency Braking, and a Driver Monitoring System with distracted and drowsy driver alerts. This one also has DreamDrive Pro, which adds future-capable ADAS hardware.

There are still some real-world annoyances. Based on your notes, the windshield wiper control is hard to find and use, and that matters more than people think in a high-tech car. When controls become less intuitive, even a beautiful interior can feel frustrating.

Still, the 2026 Lucid Air Grand Touring succeeds where it matters most. It feels luxurious, advanced, comfortable, and thoughtfully engineered. For buyers who want an EV sedan that feels truly premium and less common than the usual choices, this Lucid makes a very strong case.


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Snoop Dogg Celebrates 10 Til’ Midnight at the Compound

LOS ANGELES SENTINEL — The album is paired with a film that stars Snoop Dogg, Hitta J3, G Perico, and Ray Vaughn, and one of the strongest elements of the whole project is that the production stayed rooted right here in Los Angeles.

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Snoop Dogg celebrated the premiere of 10 Til’ Midnight at his Inglewood recording studio & multipurpose facility, The Compound, but the night felt like much more than an album release. It felt like Los Angeles. It felt like legacy. And it felt like another major move from one of the city’s greatest cultural architects as he continues to prove that he is not just dropping music — he is building moments, shaping narratives, and pushing the culture forward in real time.

What made the event so powerful was the clarity behind the vision. During a panel conversation with DJ Hed, Snoop opened up about the heart behind 10 Til’ Midnight, explaining that the project was created to help bridge older and younger generations while also speaking to the long-standing divisions between Bloods and Crips in a unique way through film. That alone gave the project a different kind of weight. This was not just about songs. This was about using creativity as a tool for connection. This was about taking a story rooted in Los Angeles and telling it in a way that could bring people together.

Snoop Congratulated By Rapper & Fellow 10 Til Midnight Cast Member G Perico (CreativeLB/KreativeKapturez)

Snoop Congratulated By Rapper & Fellow 10 Til Midnight Cast Member G Perico (CreativeLB/KreativeKapturez)

The album is paired with a film that stars Snoop Dogg, Hitta J3, G Perico, and Ray Vaughn, and one of the strongest elements of the whole project is that the production stayed rooted right here in Los Angeles. The film was shot in the city, including at WePlay Studios in Inglewood, which gave the entire project an even deeper hometown feel. It was not just a West Coast story in content — it was a Los Angeles-made production from the ground up.

That matters because, in a city like this, authenticity still carries weight. Snoop understands how to make sure that what he creates does not just represent Los Angeles on the surface, but actually comes from it.

What also makes 10 Til’ Midnight significant is that it represents another major step in Snoop’s evolution as both an artist and executive. Public reporting around the project identifies it as his 22nd studio album, but the bigger story is what it represents in this season of his life. This is one of several consecutive moves he has made in his 50s that show he is still building, still expanding, and still finding new ways to reinvent what the next chapter looks like.

Snoop Dogg at the Premiere of 10 Til Midnight (CreativeLB/KreativeKapturez)

Snoop Dogg at the Premiere of 10 Til Midnight (CreativeLB/KreativeKapturez)

Now, as the head of Death Row Records and the newly aligned leader of Death Row Pictures, he is taking the brand into a new dimension. That is what made this moment feel bigger than music. Snoop is not just protecting the legacy of Death Row — he is stretching it. He is expanding it beyond records and into film, visual storytelling, and larger creative worlds that can continue carrying the label’s impact forward. Public reporting has noted that this project arrives as part of that broader cinematic push.

That is a major Los Angeles move because the city has always been built on the intersection of music, film, neighborhood identity, and cultural storytelling. With 10 Til’ Midnight, Snoop is leaning all the way into that intersection.

The room at The Compound reflected that. It felt like a private premiere, but it also felt like a statement — a reminder that Snoop Dogg’s staying power has never been based only on nostalgia. It comes from his ability to remain connected, remain visionary, and remain in tune with how to move the culture without losing the essence of who he is.

That is why this premiere mattered. It was not just about celebrating another album. It was about witnessing a Los Angeles legend continue to evolve, continue to unify, and continue to use art to tell stories that hit deeper than entertainment alone.

In that sense, 10 Til’ Midnight became more than a project launch. It became another example of how Snoop Dogg is still taking Los Angeles to the next level — using music, film, and legacy together to build something bigger than a moment.

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OP-ED: Small Businesses Need Minnesota to Act on Pass-Through Tax Policy

MINNESOTA SPOKESMAN RECORDER — A Twin Cities immigrant entrepreneur who built several businesses including grocery stores in underserved neighborhoods is calling on Minnesota lawmakers to extend the Pass-Through Entity tax option before it expires, warning that its loss would hit small businesses already recovering from Operation Metro Surge with higher federal tax bills.

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A Twin Cities Small Business Owner Is Urging Minnesota to Extend a Tax Policy That Could Save Thousands of Businesses

By Daniel Hernandez | Minnesota Spokesman Recorder

I came to the United States as a teenager with a clear goal: to build something meaningful through hard work. I put in long days in construction, restaurants, and landscaping; doing whatever it took to learn, save, and eventually start my own business.

Over time, I built and ran several successful ventures, including an event photography company, a magazine, a tax and accounting firm, and now grocery stores serving neighborhoods across the Twin Cities where other retailers chose not to invest. I’ve created jobs, supported families, and committed to communities that deserve stability and opportunity.

That’s why I’m speaking out now.

Small business owners in Minneapolis and the communities we serve are recovering from serious disruptions, including the impacts of Operation Metro Surge. That event hit immigrant communities especially hard. In my own case, I lost nearly half of my 60 employees and saw revenue drop by about 85%. While I worked to provide competitive wages, health benefits, and paid time off, the real hardship fell on the people who lost their jobs and income.

Even as we rebuild, small businesses are facing another challenge. The Minnesota Legislature is considering letting an important tax policy expire: the Pass-Through Entity tax option.

Here’s what that means in plain terms.

Many small businesses, including mine, are pass-through businesses. That means the business itself doesn’t pay income tax. Instead, the owners report the income on their personal tax returns. But under current federal rules, there’s a limit on how much state tax we can deduct. That often leads to higher federal tax bills.

The Pass-Through Entity option fixes that. It allows the business to pay the state tax directly, which means the business can fully deduct those taxes on its federal return and lower the total amount of income taxed federally. The result is straightforward: small business owners pay less in federal taxes, without reducing what the state collects.

This policy is not new or controversial. Thirty-six states already offer it. It doesn’t cost Minnesota anything, it’s revenue neutral. And it benefits more than 66,000 businesses across the state.

In a state where the cost of doing business is already high, it’s hard to understand why we wouldn’t offer the same basic tax treatment as states like California and Illinois.

Small businesses have carried a heavy load in recent years, through a pandemic, rising costs and public safety disruptions. We’ve adapted, reinvested and stayed committed to our communities. What we need now are practical policies that support that work, not make it harder.

If the Minnesota House does not act soon, many businesses will face significantly higher federal tax bills. That’s money that could otherwise be used to hire workers, raise wages or reinvest in local neighborhoods.

I urge Gov. Tim Walz and members of the House Tax Committee to pass House File 3127 and extend the Pass-Through Entity election.

Small businesses are the backbone of our communities. We’ve proven our resilience. Now we need our state leaders to show the same commitment to us.

Daniel Hernandez is the owner of Colonial Market located at 2100 E. Lake St.

 

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