Markets with Best Home Flipping Returns

This past August, RealtyTrac released its Q2-2014 U.S. Home Flipping Report, which analyzed sales deed & automated valuation data. The report considered a single family home flip as any transaction where a previous sale on the same property had occurred within the last 12 months.

The report showed approximately 31,000 single family homes were flipped in the U.S. during the Q2-2014, which represented 4.6% of all single family homes sold in the nation. Additionally, the report found that the average investor received a gross profit of more than $46,000 per flip (a 21% gross return on the initial investment).

Metro Markets with the Most Flips (Q2-2014):

Homes with a higher price tag increased their share of flips in Q2-2014, as those with a sale price of $750k or more represented 4.1% (up 21% from last year), while homes priced at $400k to $750k represented 12.66% of all flips (up 10% from last year).

The best returns in Q2-2014 came from houses flipped at a sale price between $750k to $1M, which yielded a 41% average gross return on investment. Coming in second were homes between $50k to $100k, posting a return of 37%.

“Opportunities for investors to flip homes is still very much alive and well in Southern California as inventory is starting to expand,” said Chris Pollinger, SVP of sales at First Team Real Estate. Jennifer Laske, a house flipper in the Compton & Inglewood areas of Los Angeles explained, “Putting lipstick on the problem isn’t going to end us up with a beautiful house…the floor plan layouts that we’ve changed, everything that we’ve done here is to maximize the dollar amount when this house sells, and also make somebody really love this house. So we’re not trying to put some paint here and trick anyone, we’re actually trying to make a really beautiful house.”

It’s clear that developers are taking advantage of the flipping opportunities the housing market is offering right now. Their quality repairs are transforming the value of these homes and growing communities in a positive way. In addition, national real estate investors can partake in the world of flipping, even if they have no experience, by registering with crowdfunding portals like Patch of Land.

Whether you’re a developer looking to borrow funds for a residential real estate rehab project, or an accredited investor seeking a short-term high yield ROI, we can help. Visit our site and look at our open opportunities.  If you're already a registered user, leave a comment and let us know what you think of our services.