For real estate investors who fix and flip

[Eugene Nilus]

As a nationwide hard money lender (Y2 Lending) that lends to real estate investors who fix and flip houses and Fund Manager for accredited private investors who we pay high yield returns to, we observe the market conditions closely. 

Here are some latest stats:

1️⃣ 84,350 single family homes and condos in the U.S. were flipped in Q2 2023

2️⃣ The % of flips representing all home sales slightly went down in Q2 20238% of all home sales in Q2 2023 vs 8.9% in Q2 2023 vs 9.9% in Q1 2023

3️⃣ Despite that drop, the median $308,500 resale price of homes flipped nationwide, generated a gross profit of $66,500 in Q2 2023 above the median investor purchase price of $242,000Q1 2023 - $56,250 gross profit (up by ~18% in Q2 2023)Q2 2022 - $102,063 gross profit (35% down in Q2 2023)

4️⃣ The typical gross flipping profit translated into 27.5% ROI in Q2 2023

5️⃣ Typical home flipping returns increased quarterly in 2/3 of nation, led by Trenton, NJ, Akron, OH, and Montgomery, AL

6️⃣ The largest investment returns on typical home flips among metro areas with a population of at least 1 million in Q2 2023:

👉 Baltimore, MD (79.3 percent)

👉 Philadelphia, PA (76.9 percent)

👉 Rochester, NY (76.2 percent) 

👉 Richmond, VA (75.5 percent)

7️⃣ The weakest returns on typical home flips among metro areas with a population of at least 1 million in Q2 2023:  

👉 Austin, TX (3.3 percent loss)

👉 Phoenix, AZ (4.9 percent gain)

👉 Salt Lake City, UT (6 percent gain)

👉 Dallas, TX (6.7 percent gain)

👉 San Antonio, TX (6.8 percent gain)

8️⃣ Of the 84,350 U.S. homes flipped in the Q2 2023, 11.9% were sold to buyers using loans backed by the Federal Housing Administration (FHA), marking the fourth straight quarterly gain.

9️⃣ The average time it took from purchase to resale on home flips rose to 178 days in the Q2 2023. That was up from 177 in the Q1 2023 and 167 days in the Q2 2022, to the largest amount since mid-2020.