RealtyTrac has released data on the top six states for house flipping in 2013, and California is second on the list. According to an article out of USA Today, more than 156,000 homes were flipped in 2013, which marked a significant uptick from 2012, and more homes were flipped in California than any other state. House flipping is slowing down in 2014, but California is still one of the best places for fix and flip investing.
In 2013, house flippers in California sold the homes they flipped for nearly $100,000 more than they bought them for. Only investors in Massachusetts made more per flip. A big part of why investors make so much more on homes in California is that the starting price is also high. On average, investors spent $284,650 on fix and flip properties. With initial costs so high, the most successful flippers in California are those who have strong financial partners.
California has had the most flipped homes of any state for the last three years running. In 2011, 14,490 homes were flipped in California. That number rose to 21,152 in 2013. Those numbers are likely to drop again in 2014, but the most lucrative areas for house flipping will likely remain within the state. Last year seven of the ten most lucrative metro areas for house flipping were in California. House flippers in San Jose and the surrounding area, for example, made more than $160,000 per flip.
This year there will be fewer foreclosed homes in California for investors to flip, but that’s a good sign for the economy as a whole and for the stability of the housing market. While fewer investors will be able to take advantage of the fix and flip market this year, there is still a great deal of money to be made if you have the resources to either find the best foreclosed properties first or invest in undervalued mid-range or luxury homes. The housing market is continuing to stabilize this year and home prices are expected to go up 3% nationwide. Those numbers should be higher in California, and house flippers can still stand to make an excellent profit with the right resources and the right partner.
Contact ZINC Financial today to learn about our available fix and flip financing. We can help you determine the best strategy for growing your investment portfolio in 2014 and beyond. Call (888) 552-6637 today to get your questions answered or to get started with a new loan.