While home investors have been trending toward the buy and rent business model, a new report shows flippers are increasingly enjoying a higher rate of return in South Florida as home prices rebound.
In Palm Beach, Broward and Miami-Dade counties, the typical flipper in 2012 made a gross profit of $51,227 on their investment as the value of homes grew 16 percent, according to a RealtyTrac report.
The report measured the top 25 markets in the nation for flipping homes where the practice offered the highest rate of return. The profit amount doesn’t include the costs to renovate the home.
Orlando ranked first for potential profits with the average home selling for $103,701. But with a little spit-shine, the flipped price went up to $168,677.
Tampa ranked third nationally, with South Florida coming in sixth.
Flips were counted when the sale of the home occurred within six months or less of the previous sale of the same home.
According to the report, there were 4,299 homes flipped in South Florida in 2012, an increase of 36 percent from the previous year. Flippers bought at an average sales price of $138,064 and sold at $189,291.
This entry was posted
on Friday, May 3rd, 2013 at 8:29 am and is filed under Florida economy, Foreclosures, Housing affordability, Housing boom.
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