Have you gotten into the booming fix and flip market yet? The year 2019 is predicted to be a “hot” year for the “fix-and-flip” housing market. Before the throes of the housing crash, the flipping business was strong. Many times only requiring a superficial clean up, and spruce up of the property, allowing it to be sold for a profit of $15,000 to $25,000.
In 2019 flipping is back, but with new requirements. A small spruce up will not suffice for a successful flip. Buying location is still most important, as well as buying the potential flip property at a low enough price to give a good profit after the needed repairs, updates and holding costs. Generally, more updates need to be put into the property to ensure a faster sale and profit.
Best 10 States For A Profitable Flip
The need for upscale flips could mean lower profits per flip. But does it? Here are the best 10 states for making a profit on a flip.
The data evaluates median housing listing price, the average number of days it takes to flip a house, average gross profit on flipping and, average gross return on investment.
From this list of the 10 best states for flipping, some of the highlights are:
|Average House Listing Price||$268,692||$538,477||$369,454||$341,015||$406,803|
|Average Time to Flip||147 Days||176 Days||198 Days||184 Days||151 Days|
In these states, the average profit is between $50,000 to more than $100,000. These are profits that cannot be overlooked, but it’s not always this easy.
Goldman Sachs Enters Fix and Flip Market
Goldman Sachs purchased a specialty commercial lending platform last year and fully entered into the fix-and-flip market. This move gives the market of “fix and flip” credibility. If an industry giant has taken note of the wisdom of being a lender in the market, it is no longer considered just a passing trend. Other companies like OpenDoor and OfferPad have entered the market by making offers to homeowners, taunting it as an easier way to sell the home and then renovating the property and selling it for a greater profit.
Data to Support Flipping
ATTOM Data Solutions reports that more than half of the homes in the country are 39 years old or older. In 2017 house flipping increased to an 11-year high with more than 200,000 houses flipped. In many areas, there are fewer available places to build new homes, but a high demand for the latest designs. That’s where flipping fills this void by offering attractive homes fully remodeled and in great locations with established neighborhoods and schools.
“The surge in home flipping in the last three years is built on a more fundamentally sound foundation than the flipping frenzy that we witnessed a little more than a decade ago,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.
What Will You Do In 2019?
If you are on the fence about flipping and wonder whether it is still a viable market to be involved in, these statistics should give you more insight into what 2019 could bring. Financing your flip has never been easier than with Center Street Lending. We lend for fix and flips and rental properties in Arizona, California, Colorado, Washington D.C., Florida, Georgia, Maryland, North Carolina, Tennessee, Texas, Virginia and Washington. As you will note, some of these states are listed in the top 10 states for a profitable flip. Contact us to get a free quote and to get started on your residential real estate investment loan.