Home flippers pulled in $102,400 per flip last year

Redfin reports that 2015 was the best year for home flippers yet, with investors making $102,400 per flip on the average, compared to just $98,500 per flip in 2014 and the $90,900 flippers were making pre-recession.

Redfin’s “What’s the Flipping Deal” report takes into consideration all the numbers back to 2001, to see how flippers fared before and after the housing bust. In addition, the firm also ranked the nation’s 10 hottest neighborhoods for flippers, with Petworth in Washington, D.C landing in first place, followed by Mount Washington in Los Angeles.

For its analysis, Redfin defines a flip as any home that was bought and resold within 12 months for at least 10 percent more than its original price. It’s a very loose definition to be sure, because homes can be bought and resold quickly for all kinds of reasons, but nonetheless it provides a few good insights into where it’s possible to make a good profit from home flipping.

Home flippers benefited from the last year’s big appreciation in home prices which meant lots of opportunity for those prepared to do a bit of work on their properties. Redfin says some 43,000 homes were flipped in the last year, which is much lower than the volume of homes flipped back in 2005.

As mentioned above, Petworth in Washington, D.C. was the hottest flipping neighborhood, with the average flipped profiting to the tune of $337,000 per deal. In Mount Washington, profits hit $312,000 a home, while Silver Lake, Los Angeles saw average profits of $307,000 per home. Brookland in Washington, D.C ($290,000 per home) and North Sunnyvale in San Jose ($268,000 per home) round out the top five.

San Francisco showed itself to be the most lucrative market among metro areas, with profits of $216,000 per home for flippers, while San Jose ($174,800 per home) and Long Island ($152,600 per home) were second and third. In contrast, the cities of Las Vegas ($53,600 per home), Atlanta ($68,500 per home), and Raleigh-Durham ($71,400 per home) were the least profitable for flippers.

Check out Redfin’s full report here for more insights.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

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