Fix-and-flip performance in Q1 2026 came down to one key factor: how much room investors had between what they paid, what they spent and what they sold for.
ATTOM put together a special analysis with Backflip to examine how deals actually penciled out across six major markets. By pairing average purchase and resale prices with construction budgets, projected after repair values and payoff timelines, the data provides a clearer view into the economics behind each project.
You may have seen ATTOM’s Q1 2026 Home Flipping Report, which focuses on broader market trends using median pricing. This analysis shifts to averages to align with loan-level data and better reflect how individual deals are structured and executed.
Price spreads define investor returns
Differences between average purchase and resale prices led to significantly different outcomes across markets.
Boston posted the strongest margins, with an average purchase price of $647,456 and an average flipped price of $831,456. That resulted in an average gross profit of $184,000 and an ROI of 28.4 percent.
Atlanta also delivered strong returns at a lower entry point. Investors purchased properties for an average of $370,335 and resold them for $470,256, generating an average gross profit of $99,921 and a 27.0 percent ROI.
Dallas-Fort Worth showed the clearest compression in margins. The average purchase price of $418,856 and average flipped price of $437,003 left just $18,147 in average gross profit and a 4.3 percent ROI, limiting profit potential once renovation costs are factored in.
Across markets, the size of the price spread remained the primary driver of profitability.
Borrower data shows how investors are structuring deals
Backflip’s loan origination data adds visibility into the cost side of each project, including construction budgets and projected property values after renovation.
Denver stands out for large-scale projects. The average construction budget reached $431,250, with an average after repair value of $1.255 million. The average payoff period was 133 days, reflecting longer project timelines despite the higher property values and capital investment.
Atlanta showed a more balanced profile. Investors reported an average construction budget of $190,000 and an average after repair value of $592,000, combined with a 91-day payoff timeline and strong ROI.
Charlotte and Dallas-Fort Worth recorded significantly lower construction budgets, at $58,857 and $68,680, respectively. However, lower renovation spending did not translate into stronger returns, particularly in Dallas-Fort Worth, where margins remained tight.
Investor strategy varied significantly by market, from higher-cost, higher-value projects to lower-budget renovations with more limited upside.
Payoff timelines impact overall efficiency
Project duration continues to shape overall returns by influencing how quickly investors can recycle capital.
Atlanta and Dallas-Fort Worth recorded average payoff periods of about 90 days, indicating relatively fast project turnaround. Denver, by contrast, averaged 133 days to payoff, reflecting longer timelines for larger-scale renovation projects.
Austin had the longest average payoff period at 154 days, followed by Denver at 133 days, while Boston and Charlotte averaged roughly 118 to 119 days. Longer timelines can increase holding costs and reduce overall efficiency, especially in higher-priced markets.
Execution speed remains a key factor alongside pricing and holding costs.
A more complete view of fix-and-flip performance
Combining ATTOM’s average price data with Backflip’s borrower-level loan data provides a more complete picture of fix-and-flip performance in Q1 2026.
- Boston and Atlanta stood out for stronger margins
- Denver highlighted higher-budget, higher-value project strategies
- Dallas-Fort Worth showed how narrow spreads can limit profitability
Together, the data reinforces that investor outcomes are driven by the full deal structure, including acquisition price, renovation investment, projected value and time to exit.
Methodology
ATTOM methodology
ATTOM analyzed publicly recorded sales deed data to identify home flips, defined as residential properties sold twice within a 12-month period. The analysis includes single-family homes and condos and excludes multi-family properties with more than four units.
For this analysis, ATTOM used average purchase price, average resale price, average gross profit and average gross ROI to align with borrower-level loan data. The standard Q1 2026 Home Flipping Report primarily reports median values.
Backflip methodology
Backflip data is sourced from the company’s proprietary loan origination data and reflects fix-and-flip loans funded in Q1 2026 across six markets. The dataset includes loans closed between January 1 and March 31, 2026, for single-family homes and properties up to four units.
After repair values are based on third-party appraisals at the time of origination and reflect real transaction activity from active residential real estate investors rather than self-reported estimates or listing-based projections.
