The Key to House Flipping in Las Vegas
The house flipping market has slowed down in Las Vegas.
Over the last few years, house flippers have made quite a bit of money in the Las Vegas real estate market and in the national market as a whole. While it is slowing down in the national market, investors in Las Vegas are still finding those deals and are still making some significant profits.
House Flipping By the Numbers
In Southern Nevada, RealtyTrac reported that almost 3,000 homes were flipped during 2014, which was down 19 percent from 2013. Although this number decreased, almost 10% of the homes that were sold in 2014 were from flipped homes, which is quite a big piece of the real estate pie. The RealtyTrac Vice President explained the flipping numbers like this, “Investors have picked much of the low-hanging fruit when it comes to home flipping over the past three years since home prices bottomed out in the first quarter of 2012. As home-price appreciation slows to single digits in most markets, flippers need to be more selective and creative about the properties and neighborhoods they target.”
Selective Choice Equals Great Profit
A flipped house is defined as one that is sold less than a year after it was purchased. To make money, it is essential that you buy low and give yourself room to renovate and update, and still make money. That means you want to find the lowest priced home with the most intrinsic value. This is a skill that some people have, but if you are not sure, a trusted real estate professional can help you to find a home that can fit that mold.
Flipping is what pushed Las Vegas home values to the high level before the crash, as people with no real estate experience and easy access to money purchased property and sold it shortly for a profit. While it may not be as easy as it was then, it still can be done if you are willing to take the time to find the right property in the right location and at the right price. A Las Vegas realtor can help you to find the property that you can make a profit on.
Flipping Prices
Flippers in Las Vegas purchased homes at an average price of $166,727 and sold them at a profit of an average of $209,069. This was an average gross profit of just over $42,000 or a return of 25% on their investment. This return is slightly lower than the national average, which was 37% for the same period.
If you have been considering flipping, but think you may have missed the boat in making a profit, know that this is not the case. Home prices may still be lower than they were before the housing market crash, but they have risen almost 70 percent since 2012. This rise means that if you are careful and make a careful decision, you can make a profit and be on your way to being a house flipper. Consult your Las Vegas real estate professional to find the right property for your flipping adventure.