If House Flipping Is Dead, How Are We Making All This Money on Flips?

1. Dominique Gunderson: The Flipping Landscape in 2026

Timestamp: 00:02:41 to 00:05:58 - watch this moment on skim

The house flipping market in 2026 is not dead, but the 'easy money' days are over. Investors who were too aggressive or made mistakes are being exposed, creating opportunities for those who adapt. The margin for error is significantly smaller than in previous years, requiring more precision in deal analysis and execution.

Significance (High): This sets the stage by reframing the current market, moving away from a narrative of decline towards one of opportunity for disciplined investors. It highlights the increased risk and need for strategic adjustments.

Sources in support: Dominique Gunderson (Real Estate Investor), Henry Washington (Host, BiggerPockets Podcast)

2. Dominique Gunderson's Commission Strategy

Timestamp: 00:09:28 to 00:12:24 - watch this moment on skim

To mitigate costs, Dominique Gunderson obtained her real estate license in early 2025, allowing her to handle her own property listings. This saves approximately 2.5% in commissions per deal, significantly boosting profit margins. This also provides invaluable direct feedback on buyer preferences and market demands, informing future renovation and design choices.

Significance (High): This strategy directly addresses a major cost center in flipping, enhancing profitability and providing market intelligence that can lead to better deal selection and execution.

Sources in support: Dominique Gunderson (Real Estate Investor)

Neutral sources: Henry Washington (Host, BiggerPockets Podcast)

3. Henry Washington on Closing Costs

Timestamp: 00:11:17 to 00:13:33 - watch this moment on skim

Henry Washington maintains a consistent approach to closing costs, always underwriting at the worst-case scenario of 6% in realtor commissions, even if his agent offers a discount. He relies on historical data for other closing costs and advises new investors to obtain preliminary HUD statements from title companies to avoid guesswork and ensure accurate financial projections.

Significance (Medium): This highlights the importance of conservative financial planning, ensuring that deals remain profitable even under less-than-ideal circumstances by accounting for all potential expenses upfront.

Sources in support: Henry Washington (Host, BiggerPockets Podcast)

Neutral sources: Dominique Gunderson (Real Estate Investor)

4. Dominique Gunderson: Rehab Budget Contingencies

Timestamp: 00:13:48 to 00:16:24 - watch this moment on skim

Estimating rehab costs requires adding significant contingencies, as major surprises ($10,000+) are common when uncovering hidden issues like plumbing or electrical problems. Gunderson recommends a 10% contingency for inspectable projects and up to 20% for sight-unseen or high-risk deals to account for the unpredictable nature of renovations.

Significance (High): This underscores the inherent unpredictability in renovation budgets and stresses the necessity of financial buffers to absorb unexpected costs and maintain profitability.

Sources in support: Dominique Gunderson (Real Estate Investor)

Neutral sources: Henry Washington (Host, BiggerPockets Podcast)

5. Henry Washington's Profit Underwriting

Timestamp: 00:17:27 to 00:21:01 - watch this moment on skim

Washington underwrites deals by subtracting all costs (ARV, commissions, closing, holding, rehab) and then the desired profit to determine the maximum allowable offer. He aims for a profit equal to the renovation cost, viewing higher renovations as riskier. This rule can be bent for highly confident deals in familiar markets, but he prioritizes a minimum profit margin to mitigate risk.

Significance (High): This provides a clear framework for offer price determination, linking desired profit directly to the perceived risk and complexity of the renovation, ensuring a baseline return on investment.

Sources in support: Henry Washington (Host, BiggerPockets Podcast)

Neutral sources: Dominique Gunderson (Real Estate Investor)

6. Dominique Gunderson on Market-Specific Strategies

Timestamp: 00:21:40 to 00:23:27 - watch this moment on skim

Flipping strategies must be tailored to local market conditions. In Gunderson's market, higher competition and more buyer options necessitate a deep understanding of buyer preferences and the ability to offer properties that stand out. She actively studies new listings, particularly flips, to analyze what works and what doesn't, informing her own deal selection and renovation choices.

Significance (High): This emphasizes that successful flipping transcends generic formulas, requiring granular market intelligence and adaptability to meet specific buyer demands and competitive pressures.

Sources in support: Dominique Gunderson (Real Estate Investor)

Neutral sources: Henry Washington (Host, BiggerPockets Podcast)

7. Dominique Gunderson: Market Analysis is Paramount

Timestamp: 00:23:29 to 00:26:36 - watch this moment on skim

To succeed in house flipping today, it's essential to meticulously study your market daily, analyzing what's working, how long properties take to sell, the percentage of list price they close at, and whether sellers are offering concessions. This data-driven approach is more critical now than ever.

Significance (High): This rigorous market study is the bedrock of profitable flipping, preventing costly miscalculations and ensuring properties are priced and presented to attract buyers in a competitive landscape.

Sources in support: Dominique Gunderson (Real Estate Investor), Henry Washington (Host, BiggerPockets Podcast)

8. Dominique Gunderson: Bathroom ROI

Timestamp: 00:26:36 to 00:28:30 - watch this moment on skim

Dominique prioritizes making bathrooms 'pop' because they are smaller spaces, allowing for higher-end finishes like expensive tile at a lower overall cost compared to kitchens. This strategy aims to maximize buyer appeal without breaking the bank, contrasting with Henry's approach of focusing on kitchens and salvaging bathrooms.

Significance (Medium): By strategically investing in bathrooms, flippers can create a perception of luxury and quality that appeals to buyers, potentially justifying a higher sale price or faster sale.

Sources in support: Henry Washington (Host, BiggerPockets Podcast)

Sources against: Dominique Gunderson (Real Estate Investor)

9. Dominique Gunderson: The Peril of Emotional Buys

Timestamp: 00:31:04 to 00:34:02 - watch this moment on skim

Dominique identifies the consistent theme in losing money on deals as buying houses out of a perceived need or desire to 'buy a deal' rather than waiting for a truly great opportunity. This often leads to overbidding or purchasing properties outside one's comfort zone, resulting in anxiety and financial loss.

Significance (High): This insight underscores the critical importance of emotional discipline in flipping; succumbing to FOMO or pressure can transform a potentially good investment into a costly mistake, highlighting the psychological aspect of the business.

Sources in support: Dominique Gunderson (Real Estate Investor), Henry Washington (Host, BiggerPockets Podcast)

Sponsorship Promotion (Low severity)

Type: Commercial

Henry Washington, the host, promotes Baselane, a financial technology company and the 'official banking platform' of BiggerPockets, during a mid-roll ad break.

Significance: While a standard practice, the promotion of a sponsor's service could subtly influence the overall tone or perceived objectivity, though the core content remains focused on investment strategy.