12 Cities Where Speculators Are Raking It In By Flipping Homes

31,000 single-family homes were flipped across America in Q2 2014 for an average gross profit of $US46,000, according to latest report from RealtyTrac.

Flipping refers to the homes that were bought and sold within twelve months of purchase. It accounted for 4.6% of all U.S. single-family home sales, down 6.2% from a year ago.

These speculators saw a 21% gross return on initial investment.

“Flippers no longer have the luxury of 20 to 30 per cent annual price gains to pad their profits,” Daren Blomquist, vice president at RealtyTrac said in a press release. “As the market softens, successful flippers will need to focus on finding properties that they can buy at a discount and efficiently add value to.”

But that doesn’t mean there aren’t opportunities out there anymore. We drew on the report to highlight the 12 metros where investors made the biggest return on initial investment in the second quarter.

Note: All data is for the second quarter.

Chicago-Naperville-Joliet, Illinois-Indiana

Average gross ROI: 54%

Average gross profit:$93,752

Homes flipped:812

YoY change:7%

Average purchase price: $172,151

Source: RealtyTrac

Chattanooga, Tennessee-Georgia

Average gross ROI: 55%

Average gross profit:$44,442

Homes flipped:64

YoY change:-2%

Average purchase price: $81,310

Source: RealtyTrac

Richmond, Virginia

Average gross ROI: 55%

Average gross profit:$70,370

Homes flipped:161

YoY change:-66%

Average purchase price: $127,133

Source: RealtyTrac

York-Hanover, Pennsylvania

Average gross ROI: 59%

Average gross profit:$49,920

Homes flipped:76

YoY change:9%

Average purchase price: $84,638

Source: RealtyTrac

Deltona-Daytona Beach-Ormond Beach, Florida

Average gross ROI: 63%

Average gross profit:$49,338

Homes flipped:168

YoY change:20%

Average purchase price: $78,864

Source: RealtyTrac

Virginia Beach-Norfolk-Newport News, Virginia-North Carolina

Average gross ROI: 66%

Average gross profit: $US97,131

Homes flipped:167

YoY change:-13%

Average purchase price: $US146,830

Source: RealtyTrac

New Orleans-Metairie-Kenner, Louisiana

Average gross ROI: 76%

Average gross profit:$98,434

Homes flipped:94

YoY change:-23%

Average purchase price: $US130,374

Source: RealtyTrac

Pittsburgh, Pennsylvania

Average gross ROI: 106%

Average gross profit: $US65,742

Homes flipped: 199

YoY change:-3%

Average purchase price: $62,090

Source: RealtyTrac

Dallas-Fort Worth-Arlington, Texas

Average gross ROI: 110%

Average gross profit:$82,950

Homes flipped:545

YoY change:+25%

Average purchase price: $75,550

Source: RealtyTrac

Now see which neighborhoods are attracting the most interest...

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