The fix-and-flip market is experiencing somewhat of a resurgence after exploding on the real estate investment scene in the early 2000s. Although there are plenty of investors turning substantial profits flipping homes in markets all across the United States, doing your homework and being able to pick out the best areas to invest pays dividends in the long run. The experts at Gauntlet Funding have pulled from their decades of experience working in the fix-and-flip market to provide you with the following insights to help you get your investment journey started on the right foot.
The ability to accurately assess potential fix-and-flip markets is essential for long-term financial success for investors. You should pay attention to the following important metrics when selecting the geographic location for your next investment property.
Compared to tenants, the percentage of homeowners in a given market provides insight to investors about what areas are most conducive to successfully reselling a rehabbed property quickly. It also indicates the markets where prospective buyers have the requisite purchasing power to facilitate a successful investment.
The average household income is another important data point that is indicative of the familial purchasing power in the market. The higher the median income, the better chance you will be able to efficiently sell your improved real estate asset at a premium price point.
The fix-and-flip approach can produce an elevated profit margin in areas where the home listing prices are above average—which typically indicates a higher degree of demand in the market from homebuyers.
You want to have a general idea of how much materials and labor will cost you—an amount that can vary greatly depending on geography. Fix-and-flip investing is essentially a numbers game, making sticking to a budget essential for turning a profit. You need to know how much your planned renovations will cost to stay out of the red.
The average return on investment for house flippers in 2021 in the Steel City is an eyebrow-raising 162.4%. The average renovated property only lasts on the market for just over 100 days, and rehab costs are below the national average at an affordable $20,000. All of these factors collectively make Pittsburgh a great spot for real estate investors hoping to generate a profit by rehabbing one of the many viable properties currently listed at reasonable prices in this East Coast hub of economic and cultural activity.
The capital city of New York also happens to be a great investment market. As recent as December 2021, home prices in the city were up 9% from the previous year. They only spent 26 days on the market before selling—meaning real estate investors don’t have to worry about their renovated homes lingering vacant for long.
Virginia has tons of potential for aspiring house flippers, with the average return on investment coming in at well over 100%. The median profit margin for the state as a whole is a lucrative $91,783, with homes typically selling in just under 70 days. The Virginia Beach market benefits from several corporate and government employers that boost the local economy and draw plenty of high-quality workers searching for a place to call home.
Having a lender in your corner that you can trust to deliver reliable funding solutions to even the most complex real estate investment projects is invaluable. Gauntlet Funding is your one-stop-shop for fix-and-flip loans at affordable rates, giving you immediate access to the capital you need to lock in deals and maximize return on investment quickly. Contact us today to learn about how our experienced team of professionals can help you obtain the money you need for your next fix-and-flip project.
Top Five Fix-and-Flip U.S. Real Estate Markets | Gauntlet Funding – Melville, NY