Those rising home prices are just making house flips harder and riskier but it's a lot more lucrative. Now an investor can spend on average up to $400,000 in total transformation which may take some time to sell. Most investors plan to make just as much in net profit.
Sales: 4.5% are flips
Gross Return: 36% avg.
Net Return: $71k avg.
Home flips made up 4.5% in second the quarter of this year according to our experts and that's down from a year ago. Flipping returns though that's the gross return on investment increased to nearly 36% up from 24% a year ago. The return before the rehab costs averages around $71,000 and that's up from $50,000 a year ago. Flippers thought should proceed with caution in the next 6 - 12 months as home price appreciation slows and a possible interest rate hike could shrink the pool of prospective buyers for the flips. Now returns are already softening in hot markets like San Francisco - Seattle - Denver and Los Angeles. Alright where are the best metros to flip?
Best Markets To Flip:
Most Flips: Nevada & Florida
Best Returns: Chicago,Dayton, Baltimore
Nevada and Florida still see the most distressed homes but it's Chicago - Dayton,Ohio and Baltimore that are giving flippers the best returns. Still buyers today their looking for the high end finishes. So tips for flips- put money into the kitchen, do the bathrooms and smart home technology. Size is one thing but we're telling you amenities really sell!