Fast-growing prices in the housing market, as well as low interest rates, are enticing more investors to buy homes, renovate them quickly and sell them for a profit. But while home flips are rising and investors are expecting growing returns, the profits are falling.
Key Points
- Fast-growing
prices in the housing market, as well as low interest rates, are
enticing more investors to buy homes, renovate them quickly and sell
them for a profit.
- But while home flips are rising and investors are expecting growing returns, the profits are falling.
- The average gross profit on a flip was just under $69,000 in the third quarter, down 1.6% from the same period a year ago. The return on investment fell to 32%...
RSK: Can`t say that I feel too bad for the "Flippers" as they are like crows...but I do know a few good ones. The cost of materials, home prices and interest rates increasing plus competition has dug into their profits. One solution is to sell them to institutional flippers who rent them out and hold onto them. That way the original flipper does not have to put high end finishes into the property for just renters, saving them time and money...
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- - Volume: 9 - WEEK: 53 Date: 12/27/2021 6:24:55 PM -