Home flipping is declining across the country, but some investors are banking on fast flips. They hope to turn properties around quickly to take advantage of the hot housing market.
The gross profit on a typical U.S. home flip fell in the first quarter to $63,500, or about a 38% return on investment compared to the original acquisition price, according to ATTOM Data Solutions’ Q1 2021 U.S. Home Flipping Report. The gross flipping ROI reached its lowest point since the second quarter of 2011.
Higher home prices are prompting investors to grow leery around home flipping.
Home flippers who sold in the first quarter took an average of 159 days to complete the transaction, the lowest since the third quarter of 2013, according to ATTOM Data Solutions.
The following chart reveals the markets with the fastest times to flip a home in the first quarter.