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Home Flipping Profits Jump in DC Suburbs
While flipping houses became less profitable in DC last year, the majority of close-in counties saw profits rise, per a new report from ATTOM Data Solutions. The report offers a snapshot of the flipping market in Alexandria, Arlington, Montgomery, and Prince George's Counties.
Alexandria was the only of these four markets where flipping profits fell year-over-year, delivering a 32% return on investment (ROI) in 2019 compared to a 38% ROI in 2018. Half of flipped houses in Alexandria were initially purchased with cash, just a hair shy of the 51.5% of flips purchased with cash in Arlington.
Arlington County had the fewest flips in the four suburbs, with the 66 sold last year representing 2.4% of total sales, a 30% year-over-year drop. These properties were purchased for a median price of $493,500, then resold for a median of $665,526 for a gross profit of $172,026. This 35% ROI was a ten percent increase over 2018.
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While the number of flips in Montgomery County fell 5% year-over-year, these houses were purchased for a median price of $270,000, then resold for a median of $399,000 for a gross profit of $129,000. This 48% ROI was an increase over the 2018 ROI of 42%.
The Prince George's County's housing market was the most flip-heavy last year, with its 1,535 flips representing 13.5% of total home sales, a 7% year-over-year increase. These houses were initially purchased for a median price of $181,000, then resold for $313,000, delivering a 73% ROI. Over 56% of flipped houses in Prince George's were initially purchased with cash, compared to 63.5% of flipped houses in Montgomery County.
Note: Gross flip profits and ROI do not account for the costs of renovation, which experienced flippers estimate to be anywhere from 20-33 percent of the original purchase price.
See other articles related to: attom data solutions, flipping, flipping homes, house flipping
This article originally published at https://dc.urbanturf.com/articles/blog/at-least-half-of-flipped-houses-in-dcs-suburbs-were-cash-purchases/16551.
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