«

»

Jun 27

Flipping houses reaps record profits with Seattle in top ten cities

flipthathouseThe year 2013 should be known as the year flipping returned. Substantial price increases in key markets brought a return of both smart home investors and fast-buck artists who are now making more profit than ever before. Redfin reports an average gain of $90,200 per home.

The volume of flipping has slowed some in 2014, but not by much.

Average-Gain-from-Flipped-Home-Sale

One must note that ‘gains’ are not necessarily profits. Home flippers, whether they’re banks, companies, or individuals, usually make improvements ranging from simple cosmetic changes to completely gutting an entire home.

It takes an experienced eye to determine a proper scope of work and even with that there may be some unforeseen expenses. Rehabs can range from basic improvements, such as painting, re-carpeting, and updating kitchen and baths to full gut jobs, which can range anywhere from $60 to $120 per square foot.

House flipping TV shows make it look easy, but one thing you can count on is that it’s always way more work and time than anticipated.  And there is inherent risk in flipping because what you see when you buy is not always what you get. Hidden issues with a property can ruin all the fun.

Gains from flipping by city – Seattle in top ten

The average gain from a flipped home was well over $100,000 in 11 of the markets analyzed. San Francisco (average gain of $194,600), Long Island ($152,500) and San Jose ($152,000) were the three markets where home flippers saw the highest gains.

Seattle flippers saw $113,800 in gains, and Tacoma $74,300.     – Housing Wire June 26, 2014

Average-Gain-from-Flipped-Home-Sale-by-Market-copy

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>