What exactly is flipping homes? The term “flipping” represents one of the most romanticized and high stakes forms of real estate investment. House flippers often purchase fixer-uppers, rehab them, and sell them as quickly as possible for a profit.
Tampa Bay is one of the best U.S. cities to flip houses, with plenty of inventory and tremendous opportunities for investors to make a handsome profit.
Tampa Bay is Highly Ranked for Flipping Houses
Every quarter, RealtyTrac releases its Flipped Homes Report to shed light on home flipping trends and hot markets around the country.
Their report for the third quarter of 2015 contained some interesting facts, highlighting that flipping rates are up compared to the same quarter a year ago. But more important for real estate investors, the Home Flipping Report reveals the best cities to flip houses for a profit. And along with these very important metrics, RealtyTrac reports that the Tampa Bay metro area is booming for house flippers .
Flipping Homes to Baby Boomers
When it comes to flipping homes to baby boomers, the greater metro Tampa Bay area excels.
- Hernando County ranked #3 in the U.S. with 93 homes flipped in Q3 2015, and an average gross profit of $37,856.
- Pasco County ranked #6 in the U.S. with 308 homes flipped in Q3 2015, and an average gross profit of $31,468.
- And Manatee County ranked #10 in the U.S. with 160 homes flipped in Q3 2015, and an average gross profit of $57,442.
Highest Share of Flipped Homes
RealtyTrac also analyzes the zip codes where the highest percentage of homes sold are flipped homes. In this case, Tampa’s own Hillsborough County ranked high.
- Tampa’s zip code 33610 ranked #10 where 25.2% of homes sold were flips.
Highest Average Gross Flipping ROI
The purpose of an investor flipping houses is to make money, as with any business. And when it comes to making money on a flip, Tampa again ranked high.
- Tampa’s zip code 33063 ranked #2 with 130.2% average gross flipping ROI.
Investors Making Tremendous Profits in Tampa Bay
Not only are homes getting flipped at tremendous rates in Tampa, but they are also producing ROI profits over 130%.
Combined, these numbers are important for real estate investors flipping properties in Tampa Bay. First, competition for properties well suited for flipping will continue heating up as a result of the high rates of return. And second, flipping homes in Tampa is not slowing down, as evidenced by the high rate of flipped houses compared to overall home sales.
Why is Tampa so Profitable for Flipping Homes?
While outsiders may be surprised that Tampa is such a hotspot for flipping homes, long-time Tampa real estate investors taking advantage of these strong economic trends are not surprised.
For one, population numbers are on the rise in Tampa. As the population in Tampa rises, more new homes will be needed, and real estate investors will continue to find plenty of opportunities to rehab homes and flip them for a profit.
Second, job numbers are good in Tampa, and economic growth is currently outpacing national averages. As more people move into the middle class and transition from renting to owning homes, there will be more opportunities for flippers.
Graystone Investment Group
Graystone Investment Group is an experienced Investment Group wholesaling properties in the Greater Tampa Bay market since 2005.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.