ATTOM Data reports the first half of 2018 showed, house flippers still made an average gross return of 44.3%, or $65,250 per deal. What is interesting to note is that only 32% of those where purchased as distressed sales. The acquisition of investment properties on which financing was used has continued to increase at an accelerated pace.
The US property market has been changing significantly over the past year. The housing market continues to shift and that has investors trying to identify where they may continue to find profitable opportunities. This market cycle is certainly not favorable for the one-dimensional investor, however, those that have the flexibility and liquidity to scale will find potential in a variety of states, some of which may surprise you. In a recent edition of CNBC’s “Make it” the top states for Flipping profitably are: TN PA NJ LA CO MD VA FL IL KY. Pennsylvania rules the roost with ROI on a percentage basis, with an average return of 162.4%. Maryland comes out top on a dollar basis, with an average gross house flipping profit of almost $110,000.
Of course, there is a flip side (pun intended) to success. Currently the five worst states for flipping are MS, HI, MT, WY, SD though South Dakota has great potential to attract those fleeing from the expense of each coast. SD” s offers more affordable places to live, more changes in the energy sector, and it’s new push for allowing concealed carry of handguns without permits could be a huge attractor.
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