March 2016
March 2016
acquisition cost for flippers was much higher in the zip code immediately to the north, 97215 — another hot flipping zip code comprised primarily of the Mt. Tabor neighborhood — where the median purchase price for flippers was $332,500 and the median sold price was $535,500, a gross profit of $203,000 for a gross ROI of 61.1 percent on average. Soler said the goal for flippers in the emerging neighborhoods is to rehab homes just the right amount. “When people are moving to those areas they really want the quirky character of those bungalows. … (We) refurbish the homes and try to keep the charm,” she said, noting as the listing agent she does have some say in the rehab based on what is selling well in the neighborhood. “People are really digging the white house with the lime green door — or whatever is hot in that neighborhood.” Soler acknowledged while the low supply/strong demand Portland market may be good for sellers and their listing agents, it’s much tougher for buyers and their agents. “As a buyer’s agent it has to be frustrating … you need to show it right when it hits the market … and submit a strong offer “Digging the Lime Green Door”
“It’s not the Californians that are driving up prices; it’s the limited inventory,” added Soler, who grew up in Portland and said the key to continued growth in the Portland real estate market will be creatively finding new inventory in the city without destroying its character — which often involves re- discovering overlooked neighborhoods. “Parts of Portland that my parents never allowed me to go when I was younger are now the cooler, trendy spots,” she said, noting that Southeast Portland is the next neighborhood that she expects to “blow up” even though it’s still a little rough. The emergence of Southeast Portland is evident in the 2015 home flipping data, which shows zip code 97206 — an area including the neighborhoods of Foster-Powel, Southeast Portland, Mt. Scott-Arleta, and Woodstock — had the most homes flipped in 2015 of any zip code in the Portland metro area. The zip code also had the second highest flips as a percentage of all sales and the sixth high average gross ROI on flips (68.2 percent) among all Portland-area zips. Homes flipped in 97206 were purchased by the flippers at a median price of $168,000 and sold at a median price of $282,500, a gross profit of $114,500 on average. The average From Taboo to Trendy
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SOURCE: RealtyTrac
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