Profits from Flipped Homes in Orlando Improved During 2013
A new report shows that flipping houses may be the way to go in the Orlando metropolitan area. The gross profit from the average flipped listing grew to $37,615 last year– compared to $36,518 in 2012. The report has certainly peaked the interest of many savvy real estate investors in the Southwest.
The average selling price for a home in the Orlando housing market increased by 20 percent over the course of 2013. Investors that were able to purchase and re-sell listings within a sixth month window realized significant profits, based on studies conducted by the real estate research group, RealtyTrac.
(Quick Fact: Reported profits from these flipped homes do not reflect the cost for improvements and repairs incurred by investors.)
“Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase,” explained Daren Blomquist, RealtyTrac’s VP.
The average flipped home in Orlando was sold within six months for a sales price of $153,849.
The reported number of Orlando properties changing owners within six months has been growing over the last three years:
- 924 homes in 2011
- 1,831 homes in 2012
- 2,219 in 2013
The percentage of sales that came from flipped properties has also increased during that time period in Orlando:
- Flipped sales accounted for 3.41 percent of all single-family sales in 2011
- Flipped sales accounted for 6 percent in 2013
(Quick Fact: The average gross profit for flipped homes increased from $45,759 in 2012 to $58,081 in 2013 nationally.)
Sales of Note in Orlando During 2013
Lincoln Property Company Southeast had a busy year during 2013. They represented UP Fieldgate US Investments-Fashion Square LLC during its acquisition of Corporate Park I and II from RGA Real Estate Holdings. The sale of these two buildings located in Downtown Orlando was finalized at $4.75 million.
Marcus & Millichap Real Estate Investment Services represented a different LLC when it sold the 129 room Floridian Hotel & Suites last year for $4.5 million. Marcus & Millichap represented the buyer in this real estate transaction as well. The property has been operated as a Baymont Inn & Suites and Microtel Inn & Suites.
Flipping Homes Ain’t Easy
While this news is exciting, you’ll want to think twice before you decide to quit your job in favor of flipping homes. The improving conditions in housing markets all over the United States have led many to ponder this opportunity. There are a few things that you should consider before making any significant changes.
First off, the house flipping market is extremely competitive and has only gotten tougher in the last few years. This means that the obvious big money opportunities get eaten up very quickly. The best in the business will tell you that most of their money comes from the actions they take on the front end.
They look to acquire properties at around 30 percent below their current market value. This can take some time, and you’ll need to have a solid strategy in place so you can move quickly once you get the listing. Additionally, there aren’t many instances where you’ll be able to do this successfully without some extra cash on hand.
If it’s something that you are keen on doing then we can help you learn how to flip homes. Before jumping on this opportunity, it would be a really good idea to do some research on the housing market you’re interested in. There is certainly some risk involved in undertaking this type of investment opportunity.