Second Quarter Top Flipping Markets Part 2
Last week as we took a look into the second quarter of the year and started out count down to the best cities to invest in real estate. We took at look at the beginning of the year at our picks for best flipping cities but it is always good to know your market and stay on top of trending cities. This week we look at numbers 7, 6 and 5 on our list.
7. Allentown-Bethlehem-Easton, Pa.-N.J.
Return on investment: 55%
Avg. gross profit: $54,543 (50th lowest)
Flipped price: $153,705 (30th lowest)
Number of flips: 53
Flips, pct. of home sales: 3.6% (25th lowest)
Your run-of-the-mill distressed home in the Allentown area was sold at a price 74.3% higher than a year ago as of March, a larger increase than the vast majority of other housing markets. None the less, the area has one of the largest discounts in the nation ( 48.4%) making it the land of opportunity for flippers.
6. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
Return on investment: 56%
Avg. gross profit: $92,680 (24th highest)
Flipped price: $258,364 (32nd highest)
Number of flips: 122
Flips, pct. of home sales: 2.0% (seventh lowest)
Philly has been showing up on investors’ lists for over a year now. Although the percent of houses flipped in the Philadelphia metro area was among the lowest in the nation in the first quarter, higher home values are keeping some investors away. Despite the previous high returns, in March, buyers paid a median price of $175,000 for a non-distressed home, and $80,000 for a distressed home. Those are both exceptionally high among the most lucrative home flipping markets thus turning some serious profits for the flipper that were able to afford the homes in the first place. The average dollar return of a flipped home in the first quarter was $92,680. That is among the highest in the country.
5. Palm Coast, Fla.
Return on investment: 57%
Avg. gross profit: $54,939 (79th highest)
Flipped price: $151,515 (29th lowest)
Number of flips: 76
Flips, pct. of home sales: 14.4% (11th highest)
Although Palm Coast, a relatively small metro area with a population of less than 100,000, it is showing up big on the flipper’s radar. Its attractiveness to investors is possibly due to its large tourism industry and with that the sales of vacation homes. With a high number of flips and the $96,577 average purchase price of a home to be flipped in Palm Coast in the first quarter, that puts it just over half the nationwide average pre-flip price. Annual sales of vacation homes in the U.S. jumped by nearly 30% in 2013, according to the National Association of Realtors’ 2014 Investment and Vacation Home Buyers Survey.
Source: 24/7 Wall Street
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