Flippin'

While sifting thru some local housing data I came across some flipping activity so I thought I would see how they are doing.  The neighborhood in question currently has 4 homes for sale ranging from $174,000 to $289,000.  Only 1 looks like a flip, but let's see what other flips have sold.

This one was picked up out of foreclosure for $107,000 in 9/2010.  On 4/15/2011 it was sold for $240,000 after a facelift.

Can't tell what was done on the inside, but new siding, roof, driveway rocks and some landscaping.  Closing costs would have been about $19,000.  Looks like a successful flip.


This one was bought out of foreclosure in 10/2010 for $150,000.

It sold on 5/6/2011 for $265,000, after new siding, driveway, clearing and an entry were added to the outside.  Hard to tell what happened on the inside.  Closing costs on the flip would have been around $21,000.

Here's one still on the market.  It was bought out of foreclosure in 8/2010 for $124,000 and is currently listed for $289,000. 

New siding, driveway, roof and some landscaping on the outside.  Since it is still on the market there are inside pictures available on Redfin.  Here's a few of the inside upgrades.

The kitchen looks a little over the top for the neighborhood.  Granite, stainless steel and new cabinets.

New paneling, windows and carpeting in the family room.

New tile, cabinets, mirror and fixtures in the bathroom.

I'll be keeping track of this one to see what it sells for.

It appears flipping is alive and well.  The key appears to focus on foreclosures to ensure a low purchase price.  The flips above seem to have had a significant percent of their purchase price spent on upgrades.  The subsequent sales have made these flips some of the nicest homes in the neighborhood.  It seems to me that there is room in this market for less "over the top" upgrades and still be profitable.  It is worth noting that even though these flips were efficiently turned around (6 - 8 months), they were held during a 5 % drop in market prices.  I suspect flips this year could be even more profitable.