Sam Shueh
Continued with part 1 which focuses on the US flipping activities from different states.( 2015 US flipping activities by States).
Which cities investors made most gain buying and put it on the market during 2015 as flipper? According to RealtyTrac which keeps track of homes purchased by ithose who put them back on the market for sale within same 360 days. 2015 was a jolly good year.
1. San Jose-Sunnyvale-Santa Clara, CA-$145,000
2. San Francisco-Oakland-Hayward, CA -$145,000
3. New York-Newark-Jersey City -$120,000
4. Los Angeles Metro, CA -$115,000
5. Oxnard-1000 Oaks-Ventura, CA-$110,000
6. San Diego-Carlsbad, CA- $102,500
7. Seattle-Tacoma-Bellevue, WA-$99,000
8. Metro Honolulu, HI - $96,346
9. Washington DC metro - $96,000
10. Baltimore-Columbia-Towson, MD - $91,542
11. New Haven-Milford, CT -$90,950
12. Santa Rosa, CA - $90,000
13. Vallejo-Fairfield, CA-$87,000
14. Phila.-Camden-Wilmington-$84,788
15. Denver Metro, CO -$80,000
16. Hartford Metro, CT -$77,400
17. Chicago Metro, IL-$76,500
18. New Orleans, LA - 74,700
19. Sacramento-Roseville, CA -$74,000
20. Providence-Warwick, RI -$73,063
While San Francisco Bay area investors enjoyed the most gain. The total flips defined as bought and sold within 360 days are limited. SF area had (163 units sold) and Santa Clara County(780 units). Those who put homes just bought on the market that did not sell often are rented and eventually get sold. California cities lead the rest of the union with 35% most lucrative state to flip homes.
Detroit area has the least gain with $22,000 profit. Needless to say one can make a lot more in California where the demand is stronger than Detroit with lots of surplus homes on the market.
$145,000 may sound like a tidy profit. This is not net profit. Often the are closing costs associated with purchase and sell. The renovation is not cheap. It often involves a new kitchen, flooring, bath rooms, painting, roof, new appliances and landscape. Most investors either pool their resources together or get hard money paying 8-9% interest and all payments up front. It goes without saying there is short term capital gain tax.
-------------------------------
Sam Shueh Realtor
I've called San Francisco South Bay home for over 37 years. We love this area and all it has to offer, and I enjoy sharing what I know about homes. I documented in several books about Silicon Valley history. I have much expertise in real estate...please give me a call. Silicon Valley Realtor Sam Website (Four-O-Eight) 425-1601
Comments(2)