Investor · Los Angeles CA · Member since 2016 · 9 posts · 5 votes
Not every house makes a good flip. Just because a home is selling for a rock-bottom price doesn’t mean you can put money in it and automatically make a fortune. Check these cities out for your next Fix n' Flip...
According to Fortune, in 2016, flippers in the following cities saw gross profits of 80% or more of the price they paid for their homes:
Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
7y
Some of those sound nice, especially 212%. I mean if that is the average a lot should be doing well. However, I need to know how much is being netted. There are plenty of people with homes selling for more than 100 percent of what they acquired it for but are netting zero, and underwater in some instances.
Not every house makes a good flip. Just because a home is selling for a rock-bottom price doesn’t mean you can put money in it and automatically make a fortune. Check these cities out for your next Fix n' Flip...
According to Fortune, in 2016, flippers in the following cities saw gross profits of 80% or more of the price they paid for their homes:
East Stroudsburg, Pennsylvania (212.1%)
Reading, Pennsylvania (136.4%)
Pittsburgh, Pennsylvania (126.8%)
Flint, Michigan (105.8%)
New Haven, Connecticut (104.8%)
Philadelphia, Pennsylvania (103.7%)
New Orleans, Louisiana (97.6%)
Cincinnati, Ohio (88.5%)
Buffalo, New York (85.1%)
Cleveland, Ohio (83.8%)
Jacksonville, Florida (81.8%)
Baltimore, Maryland (80.8%)
In the flipping game all of us who've been doing it awhile have lost money on a deal here & there. Even on deals with huge spreads. One time I flipped a house that I paid $91k for and sold for $240k, but lost money. Hit us with the NET profits.
Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
7y
The list is unlimited where profit can go. I could write a book on it. Typically the main things you can lose profit on has to do with underestimating the cost of renovation; unforeseen things that arise; holding costs; or not accurately understand the market.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
This is how data is skewed. 2016 is a different market place what do flippers making 80%+ at that time do for me today? I know for me if there is an article on Fortune magazine talking about 2016 and it's 2019 it's over for those returns. As the old saying in stock investing, you don't look at the front page on the WallStreet Journal for the next big idea you look at the back pages.
Property Manager · Buffalo, NY · Member since 2019 · 8 posts · 5 votes
7y
@Edward Jones I live in Buffalo and have commercial and residential plumbing experience. I also have home renovations experience. I’m looking for investors interested in the buffalo area that need my time and skills. I’ve been running some numbers on property in the south buffalo to Ellicottville NY area, maybe be can partner up and I can run some air bnb rentals right by the holiday valley ski resort?
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
I think we can all agree that it has become more competitive and margins are tightening.
Profitability is determined by the 4 horsemen
Roof
Plumbing
Electric
A/C Heat
They don't necessarily sell the house, but will keep it from getting financed and ultimately closing. Further, the system prices continue to escalate at the same pace as home prices.