I’ve been telling you for months and months that there is a huge opportunity in the housing market now thanks to a flood of distressed properties on the market. The opportunity lies in buying low, rehabbing the house and selling it for a big profit. That strategy is gaining popularity, as evidenced by the recent numbers released by RealtyTrac that showed nearly 100,000 properties being flipped in the first half of this year. That’s up over 25% from the previous year. Not surprising, buying, rehabbing and selling properties has become most common in the areas hardest hit by the foreclosure crisis, such as Los Angeles, Phoenix, Miami, and Atlanta. RealtyTrac reports that, “Flippers are helping to stabilize home values and provide a shot in the arm to local economies.” In addition to strengthening and improving communities through the rehab efforts, flippers are serving to bring first-time homebuyers to the table, which helps the housing market and larger economy. The average profit per flip is just shy of $30,000 nationwide, with the average time to sell being just over 100 days. Not a bad ROI, huh?
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