Philadelphia Flips Are 2nd in the Nation for Gross ROI
A recent analysis by CoreLogic revealed that return on investment for flips in Philadelphia was among the highest in the nation last year. According to the study, average gross ROI correlated to the age of a region’s housing stock. Older housing stock equaled higher returns.
The market share of flips has risen to it’s highest level since 2006, but the business of flipping has changed. Rather than flipping homes based on price speculation, investors are adding real value to properties with substantial improvements. Flippers are more likely to be professional investors, and more likely to use cash and/or hard-money (rather than banks as they did a decade ago).
Philadelphia’s abundant older housing stock, affordability and rebounding population offers investors the opportunity to buy low, add value and sell at a profit. If you are looking for acquisition and/or construction financing for a flip (or buy and hold) we’d love to hear from you. Submit a summary of your project here.