Virginia Beach and Richmond, Va., along with Cleveland, were the top markets for fix-and-flip properties bought and sold between October 2018 and October 2019, according to a report by an online real estate marketing platform.
Hubzu said its analysis was based on the number of REO flip properties in the market, profit after the repairs and average number of days the listing was on the market after repairs are complete.
According to the report, more than half of the top 25 markets for fix-and-flip properties were in the East. Only two markets in the West (Riverside, Calif., and Tucson, Ariz.) made the list.
“Investing in fix-and-flip markets can offer interesting cash flow opportunities for investors, particularly in hot real estate markets like those on the East Coast,” Hubzu Vice President Travis Britsch said in a release. “Buying any kind of investment property has the potential to be a lucrative opportunity, but it’s important that savvy investors leverage the right technology and resources to find the right fix-and-flip property at a fair price so they can make the most on their investment.”
Investors in the top markets generated an average profit of $34,490 after estimated repairs, with Washington, D.C. generating the highest average profit of $51,806 and Memphis, Tenn., generating the lowest average profit of $24,892, the report found.
The metropolitan areas that made the list had an average of 79 days listed on the market for fix-and-flip properties. Memphis had the smallest average number of days (65) listed on the market and Buffalo, N.Y., had the largest number of days (121).
Hubzu said Virginia Beach had the highest percentage of REO flip properties (50.5 percent) and Memphis had the lowest at (14.8 percent).
Tampa, Fla., had the highest percentage of flips compared to total housing units (55 percent) and Kansas City, Mo., had the lowest (10 percent).