Florida leads House Flipping
Recent Data from RealtyTrac shows an increase in year over year house flipping. This is when an investor buys a property and then sells it less than one year later. The investor usually has to do at least some cosmetic improvements and is likely to make a profit from the sale.
With the increase in flipping, Florida cities dominate the list of the top areas for home flipping. Florida had record numbers of foreclosures and houses are still not keeping up with demand, so the statistics make sense that there would be an increase. However, house flipping also reached a peak right before housing crashed in 2008-2009. Many investors took substantial losses on speculative home flips.
However, house flipping also reached a peak right before housing crashed in 2008-2009. Many investors took substantial losses on speculative home flips. The current list is showing 25- 50% year over year increases in home flipping in these cities. To be successful in house flipping, you need to do an effective analysis on what the costs will be for you to purchase, renovate and hold the property and then know what the market will support for a sales price. Generally a real estate investor is expecting to make at least 25% profit before they take on a house flipping venture.
Before investing you should talk to a local, Lutz, FL real estate and property management company to advise you on purchasing, managing and selling your investment property.
Here are the Florida cities mentioned in the list.