Have you tuned into ABC, TLC, or HGTV and found yourself lost in the world of house flipping, renovations, and updates? It’s an exciting idea! You can tackle projects that update your home into the house of your dreams. You can add value to your property. Alternatively, you can spruce up a fixer-upper and set that house on the market for profit!
By definition, flipping a house is the process of rehabbing the property, and then selling the home for a second time within a 12-month period. House flipping for profit involves the investment model of buying, selling, and the “rehabbing” of houses for profit. Hopefully, for a quick profit! Even though house flipping is neither easy nor for the faint of heart, the practice of flipping houses is on the rise in the Triangle.
In 2016 alone, 1,202 house flips or house flip transactions were recorded in the Triangle. That’s a 6% year-over-year increase! What’s more? According to a report run by ATTOM Data Solutions, almost 5% of all home sales in the Triangle are actually house flipping transactions. So, where are the profits to be made in our local real estate market?
Most Profitable ZIP Codes in the Triangle
ATTom Data Solution’s report showed there are several ZIP codes in the Triangle with 20 or more home flipping sales in 2016. In fact, there are 26 zipcodes in the Triangle where house flipping transactions were 20, or more. Of all of those house flipping transactions in 2016, the median price originally paid for a home was $144,870, with a median flip price of $218,892. The profit? It’s close to a gross profit of $74,000. On average, flipped homes spent 188 days on the market.
However, there were two ZIP codes in the Triangle left out of the ATTom Data Solution’s report on house flipping because their flip totals were less than 20 units. Don’t let that fool you, though. Their profitability reaches farther than other ZIP codes in the Triangle. Let’s take a look.
Where Are the Profits?
The ZIP code 27601 happens to be the most profitable of all Triangle ZIP codes and regions, with an average of 244% return on investment for the total of 15 house flip transactions in 2016. Which is to say, an average of $207,500 as a gross profit per transaction. That’s not all this ZIP code had to offer, too. 27601 had the highest percentages of house flipping transactions, with 10.2% of all home sales in the ZIP code in 2016 classifying as a house flip. 27601 encompasses the majority of downtown Raleigh.
Next up, and also not included on the master list of 26 house flipping ZIP codes in the Triangle, is the 27608 ZIP code. The return on investment in this area hit an average of 165% on the mere 10 house flipping transactions recorded in 2016. Crazy, right? That’s not all; the average gross profit in this area hit $396,250. 27608 encompasses neighborhoods inside the belt line, and also just north of downtown in Cameron Village.
Other ZIP Codes
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27601 and 27608 aren’t the only profitable house flipping ZIP codes in the Triangle area. Here are the top ten most profitable ZIP codes in the Triangle:
- 27701 in Durham
- 27707 in Durham
- 27703 in Durham
- 27597 in Zebulon
- 27704 in Durham
- 27603 in Raleigh
- 27712 in Durham
- 27615 in Raleigh
- 27705 in Durham
- 27609 in Raleigh
Interested in Flipping Houses?
A trusted real estate professional can help you navigate the house flipping process, if it’s what you decide you’d like to do. At Real Estate Experts, we have many years of local experience. We can help you choose a location, find a property, and execute the house flipping process.
We commit to providing our clients the best experience buying or selling homes. We want the process to be smooth for everyone involved. If you’re interested in buying or selling a home in the Triangle area, give us a call anytime at 919-813-6449 or send us an email to [email protected].