Thirty-one thousand single-family homes were flipped across America in the second quarter of 2014 for an average gross profit of $46,000, according to latest report from RealtyTrac.
Flipping — which refers to homes that were bought and sold within 12 months of purchase — accounted for 4.6 percent of all U.S. single-family home sales, down from 6.2 percent from a year ago.
These speculators saw a 21 percent gross return on initial investment.
“Flippers no longer have the luxury of 20 to 30 percent annual price gains to pad their profits,” Daren Blomquist, vice president at RealtyTrac said in a press release. “As the market softens, successful flippers will need to focus on finding properties that they can buy at a discount and efficiently add value to.”
But that doesn’t mean there aren’t opportunities out there anymore. We drew on the report to highlight the 12 metro areas where investors made the biggest return on initial investment in the second quarter.
Note: All data is for the second quarter.