The comeback of the housing market has signaled a rise of fixing and flipping homes in 2012. RealtyTrac reports that there were 25% more flipped homes than a year ago. This increase benefits communities across the nation, providing enticing financial benefits to successful flippers, as well as putting foreclosures off the market and increasing the surrounding livability of the given area.
While rising housing prices generally provide higher profit margins for professional real estate investors, finding deals on foreclosed homes has proven to be difficult in an increasingly stable housing market. Some regions, however, have proven resilient to the decrease in cheap foreclosure sale options.
While house flipping in Colorado dipped 17 percent this year compared to 2011, certain areas are thriving, like Denver-Aurora, which ranked eighth in the nation for the number of flipped homes (2,714 in the first half of 2012).
Robert Hatch III, a house flipper based out of Colorado, noted that: “It used to be you could get a house for every five auctions you went to. Now, it’s more like one out of every 20. Many people tend to bid them up and up to where the margin is too small to make any profit.”
As the market continues to trend up, and fewer foreclosures are available for prospective flippers, buyers get more and more competitive. Despite this, there is still plenty of room for savvy house flippers to capitalize on the market, but it is certainly not for the feint of heart.
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