With the housing market improving so rapidly in markets like San Francisco and Los Angeles, investors looking for new properties within California are sometimes having a hard time competing in the over-crowded house flipping market. If you’re looking for a house to flip that won’t eat up your profits at the get-go with an intense bidding war, you might want to consider a slightly less hyped market such as Fresno, California.
Fresno was hit particularly hard by the housing crisis and is still in the midst of recovery. Home prices are on the rise and have steadily risen since early 2012, but they’re nowhere near their peak levels from late 2006. According to Trulia.com, the median sales price of a home in Fresno is currently about $180,000. That marks a 9.1% increase over the median price in the quarter prior and a 24.1% increase from the previous year. Fresno was hit by a particularly high number of foreclosures during the crisis, and some of those properties are still on the market.
Low Cost Market, High ROI
What all of this could add up to for a house flipper is a relatively low-cost investment with excellent opportunity for high ROI. Of course, as with any market, you’ll need to choose your prospect carefully because some areas of Fresno are not likely to rebound anytime soon. However, if you can find an ideal property in one of Fresno’s more popular neighborhoods such as Woodward Park or Roosevelt, you can hope to make anywhere from 10% to 30% on your investment.
Fresno also offers great opportunities for buy & hold investors, as many inhabitants of this area are choosing to rent rather than buy and rent prices are on the rise. With the right property, an investor could make solid monthly income as well as a significant return on their property investment with a buy &hold strategy in Fresno.
In a show of the area’s resurging strength, homebuilders have returned to Fresno after a nearly two-year construction hiatus to resume building new homes. Clearly this is an area that is on the rise, and savvy house flippers who get into the market early stand to make excellent profit in this thus far undervalued housing market.
Learn more about the rehab loans and buy & hold loans offered by ZINC Financial by giving us a call today at 559.326.2509. With ZINC as your private money lender, you can rest assured that we will stand by you throughout the house flipping process to help ensure that your investments are as successful as possible.