Home flippers made an average gross profit of $18,400 on single-family home flips, representing a 9 percent return on the initial purchase prices
Interesting article here about the increase of investors and first time investors. If you consider that 50% of buyers in today’s market buy with cash (see here) and that banks & our government are keeping their foreclosures on their books and not releasing them for sale (see here) I think now is a great time to get into real estate investing.
With the increase of investors it is harder to low ball and get good deals but we have a stable market in this area with inventory levels at 6 months and a low inventory of fixed up homes so it will be easier to sell and sell quickly once a house is fixed up. Of course, you need to control your labor and material costs on your flips but a 9% return for a 4-5 month flip seems reasonable. Also, as foreclosures are released for sale by the banks and our government there will be more supply and flippers will be able to get better deals on the buy.
If you are interested in finding great deals in Chester, Delaware and Montgomery counties give me a call at 484-985-5222.