Washington, DC Makes the Top 10 Home Flipping List
What is home flipping? According to Wikipedia, "flipping is a term used primarily in the United States to describe purchasing a revenue-generating asset and quickly reselling (or ‘flipping’) it for profit. Though flipping can apply to any asset, the term is most often applied to real estate and initial public offerings (IPOs). The term 'flipping' is used by real estate investors to describe 'residential redevelopment of distressed or abandoned properties.'"
And it looks like home flipping comes with big gains!
Banks, companies or individuals can be home flippers. Improvements are made to a home by a bank, company or an individual. The home is then sold again within 12 months. In 2013 homes were being flipped for more money than ever before (average of $90,200 per home)!
Improvements can be small cosmetic changes, like a new front door, to basic improvements like painting, re-carpeting, updating a kitchen or bath, to the complete gutting of an entire home.
Flipping may look easy on TV, but it’s not. Even those with experience in home flipping must carefully plan, estimate costs and anticipate risks and unexpected expenses that can crop up during the flipping process. Improvements can be estimated to cost from $60 to $120 per square foot.
Home Flipping Gains Vary by Market
Eleven markets were analyzed and showed that the gain from home flipping averaged well over $100,000. The highest average gains for flipping homes were seen in San Francisco ($194,600), Long Island ($152,500) and San Jose ($152,000). The lowest gains were seen by home flippers in Atlanta and Las Vegas with average gains of about $50,200 and $53,000. It is important note here that gains are not profits.
Top Home Flipping Neighborhoods in Washington, DC
The biggest gains for home flipping were seen in 2013. Washington, DC neighborhoods, Petworth and Brookland, with average gains of about $312,400 and $271,900 were listed among the top three. Washington, DC neighborhood, Fort Totten made number six with an average gain of $233,300. Stadium, Armory made number seven with an average gain of $230,400.
Does taking on a home flipping project in Washington, DC interest you? Contact me, Sheena Saydam, at Sheena@SaydamProperties.com or call 202-243-7700 today. I can help you find the perfect piece of real estate for a gainful home flipping project.