HAVE YOU EVER THOUGHT OF FLIPPING HOUSES? HERE IS SOMETHING YOU SHOULD KNOW!

I have flipped a few homes over the years, but you really have to know what you are doing and know your costs before you pull the trigger. I thought the below information is worth passing on…..the flippers have moved more towards high end flips because that is where they have better chances of making money. If you are an investor in the Tampa area and would like to partner up with me to flip some homes give me a call at 813-777-5332.

 

Home flipping down 13%, but high-end flipping up 34%

IRVINE, Calif. – Oct. 17, 2013 – RealtyTrac released its Q3 2013 Home Flipping Report, which shows 32,993 single family home flips – where a home is purchased and subsequently sold again within six months – in the third quarter of 2013. That number is down 35 percent from the second quarter and 13 percent year-to-year.

Overall, Florida’s 4,706 home flips in the third quarter came in second after California, which had 8,592 flips. And only one city in the state made RealtyTrac’s “Top 15 Markets for Profitable Home Flipping”: No. 13 Deltona-Daytona Beach-Ormond Beach.

In some cities, the number of home flips decreased significantly since the second quarter, including two Florida cities, Tampa (47 percent decrease) and Orlando (28 percent decrease).

According to RealtyTrac, real estate investors made an average gross profit of $54,927 on single-family home flips in the third quarter – a 12 percent higher average gross return compared to the third quarter of 2012.

The higher gross profit on fewer total home flips was driven, in part, by an increase in the number of high-end homes sold by flippers for $750,000 or more. A total of 968 high-end homes nationwide were flipped in the third quarter, down 13 percent from the previous quarter but up 34 percent from a year ago.

More than three-fourths of all high-end flips were in five markets: the New York metro area and four coastal California markets – Los Angeles, San Francisco, San Jose and San Diego. Flips on homes priced between $1 million and $2 million increased 42 percent year over year, while flips on homes priced between $2 million and $5 million increased 350 percent year over year.

“Increasing home prices over the past 18 months combined with decreasing foreclosures have created a market less favorable to the high quantity of middle- to low-end bread-and-butter flips that we saw late last year and early this year,” says Daren Blomquist, vice president at RealtyTrac.

“But the sharp rise in high-end flipping indicates there is still good money to be made for flippers willing and able to take on the additional risk of buying and rehabbing more expensive homes,” he adds.

The number of single family homes flipped in the third quarter decreased from the previous quarter and a year ago nationally, but flipping numbers were still up from a year ago in some markets such as Los Angeles (11 percent increase), New York (14 percent), Detroit (13 percent), Atlanta (32 percent), Las Vegas (9 percent) Chicago (28 percent) and Seattle (23 percent).

© 2013 Florida Realtors®

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