Charleston Homes Being Flipped
House flipping, which is the practice of purchasing a home with the intention of reselling it within the next 12 months, appears to have reached a low-point in 2015 both nationally and locally. In fact, RealtyTrac is reporting that approximately 17,300 single-family homes were flipped during the first quarter in the United States. This accounts for about 4 percent of all homes sold, which is the lowest the figure has been since the second quarter of 2011. In South Carolina, flips accounted for just 3.9 percent of sales with 320 homes flipped in the first quarter. While the number of houses being flipped fell during the first quarter, RealtyTrac also found that the profits made from flips has gone up. Throughout the country, profits during the first quarter went up to $72,450 from $61,684 in the first quarter of 2014. Statewide, the average profit was lower at $44,550. This is not to say that the return on investment was not sound within the state. Nationally speaking, the gross return on investment was 35.1 percent. Statewide, the figure was only slightly less at 34.2 percent. In terms of the number of days it is taking investors to flip their homes, the process is slightly faster in South Carolina than the national average. While RealtyTrac found that the average time between purchase and resell was 176 days throughout the country, the same process averaged 175 days in South Carolina. Given the fact that flipped homes are moving fairly quickly and at a decent profit, it is evident that there is still a great demand for homes that are move-in-ready and updated with modern amenities and features. For investors, the greatest challenge is finding distressed homes that provide a good opportunity for flipping. In some cases, this requires trying to differentiate between communities that are on their way out versus ones that are up-and-coming. Investors also need to keep in mind that buyers are not always those who are looking for a year-round home. In fact, RealtyTrac found that nearly 35 percent of the homes flipped throughout the country were sold to non-owner-occupied buyers such as second-home buyers and other investors.

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