first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Sign up for DS News Daily in Daily Dose, Featured, Headlines, Market Studies, News June 4, 2014 1,632 Views About Author: Colin Robins Previous: Credit Union Lending Jumps in Q1 2014 Next: Millennials Use ‘Bank of Mom and Dad’ for Down Payment Help Share Save Demand Propels Home Prices Upward 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Total Home Flipping Down Yearly, but Profit Increases Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago In a blog post, RealtyTrac VP Daren Blomquist analyzed data from the company’s newly created and interactive, county-level heat map, which shows the returns on home flipping over the last 12 months in 1,050 counties nationwide. He found that although flipping was down nationally in the first quarter of 2014 compared to a year ago, flippers are making bigger profits per flip.In the first quarter of 2014, the average gross profit per flip was $55,574. The average gross profit per flip in Q1 2014 saw a 30 percent return on the initial purchase price. Gross profits increased year-over-year from $51,805 in the first quarter of 2013, a 28 percent return on investment.However, the total volume of flipped properties has declined, dropping from the previous year. Blomquist noted that 3.7 percent of all single-family homes sold this year were flips, compared to a 6.5 percent share of sales a year ago.He emphasized that flipping is not a guaranteed path towards wealth creation. “The average flip generated positive gross ROI in 833 of the counties analyzed (79 percent), but gross ROI on the average flip was flat or negative in 217 counties (21 percent)—demonstrating that profiting from property flipping is not guaranteed,” he said.Blomquist commented that one of the most important factors in a successful and profitable home flip is how much work will need to be performed on the house in order to resell it at a higher margin.The report cited the 14 best counties for flipping, which had to meet some specific criteria in order to qualify. To make the list, counties had to have at least 100 single-family homes flipped in the past 12 months, an average gross return of 30 percent or more, an unemployment rate below the national average of 6.7 percent, and experience an increase in foreclosure activity in the first quarter of 2014 compared to a year ago.The top counties by gross return on investment (GROI) in Q1 2014 include: Prince George’s County, Maryland (83 percent GROI); York County, Pennsylvania (72 percent); Baltimore, Maryland (71 percent); Campbell County, Kentucky (70 percent); and New Castle County, Delaware (53 percent).Blomquist found that by volume, many states most known for their foreclosure problems topped the list in total volume of flipped homes.From April 2013 to March 2014, the top five counties with the most flipped homes included: Maricopa County, Arizona (4,632); Los Angeles County, California (3,610); Douglas County, Nebraska (3,095); Duval County, Florida (2,803); and Clark County, Nevada (2,542). Home / Daily Dose / Total Home Flipping Down Yearly, but Profit Increases Home Flipping Profits RealtyTrac ROI 2014-06-04 Colin Robins Tagged with: Home Flipping Profits RealtyTrac ROIlast_img