Flipping Edges Out Renting As the Preferred Investment Strategy

[Tony White]

My friend shared this ariticle with me and I thought you might find this quick read worth your time...

Flipping Edges Out Renting As The Preferred Investment Strategy

Survey data collected from investors bidding on property online and at live events across the country reveals that flipping is still the preferred investment strategy among investors, edging out the hold-to-rent strategy for the fourth consecutive quarter

Survey respondents who indicated that they were making a one-time purchase clearly preferred a hold-to-rent strategy, while respondents identifying themselves as full-time "real estate investors" and those indicating that they were working on behalf of another investor strongly favored flipping.

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http://www.prnewswire.com/news-releases/flipping-edges-out-renting-as-the-preferred-investment-strategy-for-the-fourth-consecutive-quarter-according-to-auctioncom-real-estate-investor-activity-report-300168540.html

Share of Flipped Homes Increases 18 Percent

43,197 single family homes and condos (5.0 percent of all single family home and condo sales during the quarter) were flipped (sold as part of an armslength sale for the second time within a 12month period) - RealtyTrac®’s Q3 2015 U.S. Home Flipping Report

The 5.0 percent share in the third quarter was down 7 percent from a 5.4 percent share in the second quarter but up 18 percent from a 4.3 percent share in the third quarter of 2014

(when the share of U.S. homes flipped hit the lowest quarterly level going back to the first quarter of 2000)

The average gross flipping profit (the difference between the purchase price and the flipped price, not including rehab costs and other expenses incurred, which flipping experts

estimate typically run between 20 percent and 33 percent of the property’s after repair value)—was $62,122 for completed home flips in the third quarter (vs $62,521 in the second quarter and $61,781 in the third quarter of 2014)

The average gross return on investment (the average gross profit as a percentage of the average original purchase price) was 33.8 percent for completed home flips in the

third quarter, down from 34.4 percent in the previous quarter but up from 32.7 percent in the third quarter of 2014.

Read more at :

http://rismedia.com/2015-10-28/share-of-flipped-homes-increases-18-percent/