Buying and selling rehabbed homes as quickly as possible is still hot, but new home flippers often wonder about which are the most profitable areas to flip homes. Whether you live in a more profitable state such as Washington State, Utah, Colorado, Florida or Georgia or have to travel and stay in another city or state to accomplish a flip, it pays to analyze potential profitability. Instead of hoping for a house flipping profit in an obscure town, consider where investors already succeed with high gross profits. If you don’t live in booming real estate cities in Texas, North Carolina, Virginia, California, Arizona and similar markets, budget for the miscellaneous travel expenses, lodging and added costs. In many cases, you can figure out the most profitable zip codes for flipping properties in your own hometown.
Finding the best areas in North Carolina
In North Carolina, the Raleigh/Durham/Chapel Hill area remains a lucrative area for home flipping. According to a recent piece by bizjournals.com, 5 percent of homes in the area fall into the house flipping category, which means investors sold the home for a second time within one year. Last year, investors flipped more than 1,200 homes which marked a 6 percent increase over the prior year. The median home purchase price is about $200,000 with gross profits hovering around $40,000. Some of the top zip codes in North Carolina for profitable home flipping include 27587 zip code in Wake Forest. It takes the average investor 185 days to flip a home in Wake Forest with the gross ROI (return on investment) at 20 percent. Other great communities to consider in the Piedmont region include Cary (27519 and 27513) where investors often see a gross profit of about $60,000. According to ATTCOM Data Solutions, Raleigh (27616) is a profitable city in the Triangle with median purchase prices of just $125,000 and sale prices of about $170,000. Investors will likely succeed by choosing the following North Carolina communities: Youngsville (27596), Clayton (27520), Knightdale (27545), Holly Springs (27540) and Garner (27529).
Searching in the Tampa Bay area for a flip
After the Great Recession, homes in the Tampa Bay area bounced back in value. Because of the high foreclosure rate, real estate investors grabbed up great deals. In 2017, the Tampa Bay area remains a great area for house flipping, but it’s still about the zip codes. According to a recent article by the Tampa Bay Times, home flipping is slowing down as prices continue to rise. Experts say Tampa’s home flipping rate ties for the third highest among metro areas in the United States. Some hot places include zip codes in Seminole Heights, St. Petersburg and Pinellas Park. In fact, South Seminole Heights (33603) ranks 28th in the country as far as having a high flipping rate. Downtown St. Petersburg draws a lot of tourists, travelers and part-time residents. Flippers often find less expensive areas that turn into up-and-coming neighborhoods. Some of the most popular zip codes include Historic Kentwood (33713), and 33712 and 33705 ZIPS, which are areas in St. Pete south of Central Avenue. Real estate opportunities include homes bought for around $100,000 and sold after the rehab project for about $200,000. Tampa is one of the fastest growing areas in the country, which appeals to investors. Other key ZIPS include 33542 (Zephyrhills), 33755 (Clearwater), 33610 (East Tampa), 33619 (Clair-Mel City), and 34668 (Port Richey). Investors want to maximize their profits while reducing costs when flipping a residential property. California is also a booming area for home flippers. Experts say Tampa Bay ties with Portersville, California where 9.3 percent of sales were due to home flips.
At Center Street Lending, we help new and established real estate flippers with private money loans that help them achieve their goals. Our quick turnaround loans help investors in hot real estate markets such as Georgia, Florida, Washington State, North Carolina, Utah, Colorado, Virginia and Arizona. For more tips on how to sell your flip and smart loans from a reputable private money-lender, contact us today.
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