Florida Cities Among Top Markets for Flipping Homes

Florida was one of the areas hardest hit by foreclosures from the beginning from the beginning of the recession to about the start of 2012 when more than 4.1 million to 4.5 million foreclosures took place across the country.

In fact led by Orlando, FL foreclosed homes, and followed by Las Vegas, Nevada and Phoenix, Arizona, may be the best place in the nation to flip houses. Tampa, Lakeland, Miami, FL are also in the top ten cities where flipping residential real estate can be profitable.

Positive environment for investing

Flipping houses refer to buying, renovating and reselling residential real estate—single-family homes, condominiums, townhouses and cooperates—within a 90-day period after acquiring foreclosed homes or other properties. The real estate firm RealtyTrac believes that the”favorable “climate for investors will continue through the rest of the year.

In addition, investors who prefer to rent homes can still earn a decent return on investment. Some investors, who have a buy-and-hold exit strategy, flip homes from time-to-time, which helps fund their purchase of rental houses.

Inventories remain low

April is traditionally a month home buying ratchet up into high gear—as inventory increased 4.12 percent over March. Homes that are listed are on the market 11 percent fewer days than April 2012.

The demand shortage ensures that do not remain available—new or existing homes—about average of 81 days.

According to real estate website Tulia, only 32% of homeowners responding to their survey believe now is a good time to sell. Most home sellers are trying to recoup the home equity they loss during the housing market downturn —-an average loss of 34% and as high as 50% to 60% in Florida, Nevada and Arizona.

Overall inventory has fallen in 135 of the 146 markets measured by Realtor .com Thirty-six of the market experienced a drop in inventory of 20 percent or more.

Another factor for the low inventory over the past several months has been fewer foreclosed homes coming onto the market. Compared to March 2012, when 1.5 million homes were in some phase of foreclosure, the number has dropped to 1.1 million

Approximately 1.1 million homes in the U.S. were in some stage of foreclosure, known as the foreclosure inventory, as of March 2013 compared to 1.5 million in March 2012 and 51% of the peak that occurred in 2010

For the 12 month period ending March 2013, the five states with the highest number of homes foreclosed are:
Florida -103,000
California – 83,000
Michigan -70,000
Texas – 53,000
Georgia – 48,000
The majority of the foreclosure properties in the U.S. occurred in these five states.

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