Orlando has been named the best city in the nation for house-flipping according to a report released by RealtyTrac. The city was the most profitable housing market for house-flippers in 2012, with Lakeland and Tampa, Florida close behind.
House flippers are investors who purchase a home in order to turn around and sell it, usually within a six month period. Orlando house-flippers averaged a 63 percent profit in 2012, with an average purchase price of $103,701 and a resale price of $168,677.
“Definitely there are a lot of investors from out of the country who know it is an active real-estate market,” said Marisela Torres, a buyer’s agent for Keller Williams. “They [homes] are selling at asking price and above asking – we are seeing multiple offers on every listing.” She said that many of her foreign buyers will give her a budget, but they will often adjust this number when they see the limited number of homes available.
Factors contributing to the increase in Orlando house flippers are the influx of foreign buyers, the influx of equity-funded investors, a general sense that the market has hit bottom (so now is the time to act), and a limited number of homes available (about half of what is considered normal).
Source: Orlando Sentinel