201-942-9089 info@abl1.net

House Flipping Statistics All Real Estate Investors Should Know

by | May 4, 2016 | 0 comments

For real estate investors involved in flipping properties, having data from a house flipping report to support investment decisions allows for smarter and more profitable strategies.

The 2015 US Home Flipping Report compiled by RealtyTrac provides detailed information regarding the state of affairs for real estate investors across the country. After studying the report, we’ve extracted some information to highlight that may interest our hard money borrowers.

Home flipping was the most popular it’s been since 2007.

The house flipping statistics report, which defines a flip as a property that is sold for the second time within a 12-month period, found that the number of real estate investors who completed one or more flips in 2015 was the highest it’s been since 2007. The data collected from 950 counties and more than 80% of the population found over 110,000 active flippers in 2015 – the most since 2007’s 130,000.

It’s not just about the large investors.

While the number of active real estate investors is on the rise, the number of flips per investor indicates a rise in smaller investors entering the market. In 2015, the average flips per investor was just 1.63 – the lowest since 2008.

Investors are making money.

Perhaps not coincidentally – the increase in real estate investors coincides with an average gross profit per home that’s the highest it’s been in 10 years.  According to the study, the average flip sold for 5% above the estimated market value for an average gross profit of $55,000*.
where-are-people-flipping-houses

Where are investors doing their flips?

It is no secret that distressed properties in larger metro areas provide ample opportunities for real estate investors to purchase a property that can be fixed up and resold at a premium. In fact, the study shows that flipped houses were originally purchased at 26% below the estimated market value.

Here is how some of Asset Based Lending’s most popular hard money lending areas with an average net profit for flipping a house stacked up last year:

New York – Newark – Jersey City (NY, NJ)

2015 Flipping Gross Profit: $120,000*
2015 Gross ROI: 61.5%
2015 Median Purchase Price: $195,000
Year Over Year Percent Change: 12%

Philadelphia – Camden (PA, NJ)

2015 Flipping Gross Profit: $84,788*
2015 Gross ROI: 98.4%
2015 Median Purchase Price: $86,200
Year Over Year Percent Change: 23%

Hartford – West Hartford – East Hartford (CT)

2015 Flipping Gross Profit: $77,400*
2015 Gross ROI: 79.3%
2015 Median Purchase Price: $97,600
Year Over Year Percent Change: 18%

Miami – Fort Lauderdale – West Palm Beach (FL)

2015 Flipping Gross Profit: $59,700*
2015 Gross ROI: 48.1%
2015 Median Purchase Price: $124,000
Year Over Year Percent Change: 4%

Baltimore – Columbia – Towson (MD)

2015 Flipping Gross Profit: $91,542*
2015 Gross ROI: 84.8%
2015 Median Purchase Price: $107,958
Year Over Year Percent Change: 21%

Washington – Arlington – Alexandria (DC, VA)

2015 Flipping Gross Profit: $96,000*
2015 Gross ROI: 48%
2015 Median Purchase Price: $200,000
Year Over Year Percent Change: 4%
If you’re curious about the potential profitability of a fix and flip project, we’re happy to provide you with a simple to use Deal Economics Calculator. Shoot us an email at info@abl1.net and one of our team members will send it over. If you’re already satisfied with the economics of your next deal and are ready to pre-qualify for your hard money loan, let’s get to work.
Pre-Qualify Today

*Gross profit was calculated by subtracting the median price for the first sale (purchase) from the median price of the second sale (flip) in each geography. Gross return on investment was calculated by dividing the gross profit by the median first sale (purchase) price. Gross profit and return on investment do not include property rehabilitation costs.

0 Comments

Trackbacks/Pingbacks

  1. How To Find A Profitable Real Estate Investment Property - 4 Tips - […] every property you find is going to be a home run, so it’s important to research the neighborhood you’re dealing…
  2. Real Estate Investing: No Longer Just for the Wealthy - […] alike. These savvy investors find a distressed property that can be purchased at a discount, 26% below market value on average,…
  3. Increase Real Estate Value & Sell Quicker By Staging Your Home | ABL - […] and decorative fixtures will bring the space to life! Thanks to the increasing popularity of the fix and flip industry,…
  4. Fix And Flip Or Buy And Hold Real Estate Investing | Asset Based Lending - […] residential real estate investing industry is the most popular it’s been in over a decade, causing many people to…
  5. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes | Build Realty - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade , and…
  6. Flipping A House? Remember These 4 Things | Real Estate Blog - […] of the real estate investing industry, property flipping is the most popular it has been in at least a…
  7. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes – @Redfin | i95South.com | South Florida Real Estate - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  8. Double Your Money in Real Estate Investing – The Rule of 72 – Bayside Home Buyers - […] Active Real Estate Investing (Flipping), 20-100% […]
  9. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  10. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes - Best Homes AZ - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  11. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes - Rod Schwalb - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  12. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes - PrescottAZLiving - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  13. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes - Travis Shelton, Realtor - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  14. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes - David & Tammy Rod - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  15. Want To Flip Instead Of Flop? Avoid These Common Rehab Mistakes - Steve Rook - […] of the inspiration, fix and flip investing is the most popular it’s been in over a decade, and many…
  16. Flipping A House? Remember These 4 Things - HouseHunt Consumer Blog - […] of the real estate investing industry, property flipping is the most popular it has been in at least a…

Submit a Comment

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

Recent Posts

Join Our Mailing List

Login

Member's Menu