Flip Margins in 2026: Are You Budgeting Enough?
- Robert Schmalz
- Feb 9
- 1 min read
Updated: Feb 10
The 2026 spring market is officially warming up.
If you’ve been tracking the MLS lately, you know the "easy" flips are gone. With LA construction costs now averaging significantly higher per square foot than just two years ago, the profit in 2026 isn't just made in the buy—it’s protected in the budget.
For our group, the biggest topic of conversation right now is Renovation ROI. We are seeing a lot of newer investors get crushed by holding costs and labor shortages because they underwrote deals using 2024 numbers. The winners in this market are the ones running lean, efficient crews and nailing their ARV (After Repair Value) with surgical precision.
Here is the latest data to help you sharpen your pencils for your next offer:
The 2026 Cost Reality: A detailed breakdown of current in Los Angeles. If you aren't budgeting for the new labor rates, your margin might disappear before you even swing a hammer.
Market Forecast: Why 2026 is shaping up to be a year of "Stability" rather than appreciation—and why that means you can't rely on the market to fix your mistakes.
We’ll be breaking down a live deal at our next MeetUp Event, Los Angeles Real Estate Investing & House Flipping Network
Meet like minded individual where you can share and learn.
Bob Schmalz
Managing Partner
bob_schmalz@wlaregroup.com
310.505.5571
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