Updated October 2026. Flipping figures are from ATTOM’s Q1 2026 U.S. Home Flipping Report (released June 18, 2026); tax and FHA rules are from the IRS and the eCFR, read October 26, 2026.
Flipping an apartment means buying a unit or a small building below its potential value, improving it, and reselling it for a profit. It’s still common: ATTOM counted 64,348 single-family homes and condos flipped in Q1 2026, 8% of all sales, with a typical gross margin of 25.4%, or $66,000 before costs. Apartment buildings add tenants, rents and bigger loans to that math.
Jump to: 🏠 What it is · 💲 The numbers · 🪜 How to flip · ⏱️ Rules and taxes · ❓ FAQ
Key takeaways
- Flips made up 8% of US home sales in Q1 2026, per ATTOM, down from 8.2% a year earlier.
- The typical flip’s gross margin rose to 25.4% from 24.7% the quarter before, still below 29.6% a year earlier.
- Profit held 1 year or less is a short-term capital gain, taxed like ordinary income (IRS Topic 409).
- A buyer can’t use an FHA-insured loan if you resell within 90 days of buying (24 CFR 203.37a).
What does flipping an apartment mean?
“Apartment flipping” covers two different plays. Know which one you’re doing before you run numbers.
Flipping a condo unit. You buy one apartment, renovate it and sell it to an owner-occupant or another investor. It works like a house flip, with an HOA in the middle. ATTOM’s report counts these with single-family homes.
Flipping an apartment building. You buy a whole building, fix units and common areas, raise rents to market, and sell to an investor. Here the price is driven by the building’s income, not by nearby home sales. More rent and lower costs mean a higher sale price.
Both are active investing, not passive. If you’re newer to real estate, our starter guide to real estate investment covers the basics first.
How much do flippers make?
ATTOM’s Q1 2026 report gives a national picture. Note that these are gross figures: the gap between purchase and resale price, before repairs, holding costs, fees and taxes.
| ATTOM flipping measure | Q1 2026 | Q4 2025 | Q1 2025 |
|---|---|---|---|
| Homes and condos flipped | 64,348 | 69,711 | 70,579 |
| Share of all home sales | 8.0% | 7.2% | 8.2% |
| Typical gross margin | 25.4% | 24.7% | 29.6% |
| Typical gross profit | $66,000 | $64,300 | $74,172 |
Local markets vary a lot. Among large metros, ATTOM found the highest flipping rates in Atlanta (12.3%), Cleveland (12.1%) and Dallas (11.9%), and the lowest in Seattle and Tulsa (5.1% each). The lesson: a national margin tells you little about your block. Price your own deal from local sales and rents.
Margins swing even more than flipping rates. Among metros with more than 1 million people, ATTOM found the largest typical margins in Pittsburgh (85.9%), Buffalo (84%), Virginia Beach (74.9%) and Baltimore (65.9%). Its same report headlined that flipping was barely profitable in major Texas cities. So before you pick a market, look at its own numbers, not the national ones.
A simple way to test a deal
Before you make an offer, write down four numbers: the price you’d pay, the full repair budget, your holding costs per month times the months you expect, and your selling costs. Add them up. Then compare the total with a realistic resale price from recent local sales. If the gap doesn’t leave room for surprises and taxes, pass. There will be another deal.
The costs that eat the margin
- Purchase closing costs and loan fees.
- Renovation, permits and a contingency for surprises.
- Holding costs: interest, taxes, insurance, utilities and HOA or building costs.
- Vacancy while units are being fixed.
- Selling costs, including any listing fee and buyer-agent pay you agree to.
- Taxes on the profit.
Many flippers use short-term financing. Our guide on hard money loans explains how they work and what they cost.
How do you flip an apartment building?
- Pick a market you know, with rising rents and steady demand.
- Find a building that’s under-managed: below-market rents, high vacancy or deferred repairs.
- Underwrite it. Compare current rent and costs with what’s realistic after upgrades.
- Check the leases. In many places you can’t raise rent or remove tenants mid-lease, and local rent rules may apply.
- Line up financing and a reserve for surprises.
- Renovate in phases, turning units as leases end.
- Lease up at the new rents and document the income.
- Sell to an investor with clean books: rent roll, leases, expenses and repair records.
Keeping units ready between tenants is half the work. Our tips on keeping an apartment ready to rent help with turnover.
Should you hold it in an LLC?
Many investors do, to separate the property from personal assets. Some go further and look at how the property is legally structured, sometimes using entities such as a Cook Islands LLC as part of a broader asset protection plan. That’s a question for an attorney and a tax pro. For the basics of a US entity, see our guide on buying property with an LLC.
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On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →What rules and taxes apply to flips?
Short-term capital gains
Per IRS Topic 409, a gain on property held more than one year is long-term. Held one year or less, it’s short-term and taxed at your ordinary income rate. Many flips land in the short-term bucket. Talk to a tax pro before you buy, especially if you plan several flips a year. Our guide to the tax side of selling below market value covers related cases.
The FHA 90-day rule
Under 24 CFR 203.37a, a home resold 90 days or less after the seller bought it isn’t eligible for an FHA-insured mortgage. Between 91 and 180 days, the lender needs a second appraisal if the price is 100% or more above what the seller paid. If your likely buyer uses FHA, plan your timeline around it.
Tenant and local rules
Find out how existing leases carry over to a new owner where you buy. Local rent rules, notice periods and permit rules differ by city. Check them before you set a budget, not after.
How do you sell the finished flip for less?
Every dollar of selling cost comes out of your margin. A flat fee MLS listing from Beycome puts a condo or small building on the local MLS from $99, with $0 to Beycome at closing. If you’d like experts to negotiate with you, always on your side, while you stay in control, Concierge is $999 through October 31, 2026 (list price $1,399). For condo flips, see our tips on marketing a condo.
Buying your next project? Beycome’s buyer program is open to every buyer on homes listed by other agents, with no upfront fee. When the seller offers buyer-agent compensation, we keep 1% of the price (minimum $1,499) and credit the rest at closing, with lender approval. It can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.
Frequently asked questions
What is apartment flipping?
Buying an apartment unit or building below its potential, improving it, and reselling it. Unit flips work like house flips; building flips depend on raising rental income.
Is flipping apartments profitable in 2026?
It can be. ATTOM’s typical gross margin on home and condo flips was 25.4% in Q1 2026, before repair, holding and selling costs. Results vary widely by market.
How are flipping profits taxed?
Held one year or less, the gain is short-term and taxed at ordinary income rates, per IRS Topic 409. Ask a tax pro how your own flips will be treated.
Can a buyer use FHA to buy my flip?
Not if you resell within 90 days of buying. From 91 to 180 days, a second appraisal may be needed if the price doubled.
Can you flip condos?
Yes. Check the HOA’s rules on renovations, rentals and resale first, and budget for monthly fees while you hold the unit.
How do beginners start flipping apartment buildings?
Start small, in a market you know. Underwrite rents and costs carefully, keep a cash reserve, and get legal and tax advice on leases and structure.
Flipping figures are ATTOM’s Q1 2026 U.S. Home Flipping Report (single-family homes and condos; gross figures before expenses). Tax and FHA rules are summarized from IRS Topic 409 and 24 CFR 203.37a. General information, not legal, tax or investment advice.
Beycome prices as of October 2026. Concierge is $999 through October 31, 2026 (list price $1,399). “$0 at closing” means no Beycome fee at closing; other closing costs, taxes, title fees and any agreed buyer-agent compensation still apply.
Buyer program: no upfront fee; Beycome keeps 1% of the price, minimum $1,499, and credits the rest of the buyer-agent commission at closing, subject to the compensation offered, state rules and lender approval. Not available on FSBO homes or homes listed by Beycome sellers.
Sources
- ATTOM, Q1 2026 U.S. Home Flipping Report, read October 26, 2026.
- IRS, Topic 409, capital gains and losses, read October 26, 2026.
- eCFR, 24 CFR 203.37a, sale of property (FHA resale rules), read October 26, 2026.
- Beycome, listing package features, October 2026.
- Beycome, buyer program, October 2026.
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