The demand from retail buyers for that is enormous.”
Among 71 Cleveland-area zip codes with at least one home flipped in the third quarter of 2016, those with the top five most flips during the quarter were 44128 in the city of Cleveland (23 flips); 44107 in Lakewood (20 flips); 44125 in the city of Cleveland (19 flips); 44137 in Maple Heights (17 flips); and 44060 in Mentor (15 flips). Investor Mike Dagget found success flipping an older home in Grand River, a northeastern suburb next to Mentor and bordering Lake Erie. He said he purchased the 1908 bank-owned home for $35,000 in July 2013, put $40,000 into rehab and sold a year later for $113,000. “Maybe 50 yards away it was a brand new development. Two or three houses down from mine the houses were 2005 or newer,” said Daggett, who noted the
Francisco,” Rokakis continued, citing two young employees of the Western Reserve Land Conservancy hailing from Oregon and Florida, both of whom are planning to put down roots in Cleveland. “They’ve come to love Cleveland and want to stay here.” Upside-Down Rainbow Cantwell, who bought his first investment property in 2001 in the southwestern Cleveland suburb of Parma, described the Cleveland region as an upside-down rainbow with varying degrees and types of investment opportunity on each ring of the rainbow. Cantwell said the outer ring of the rainbow, comprised of suburbs such as Lakewood and Rocky River to the west and Pepper Pike and parts of Shaker Heights to the east, is best for flipping homes. “In the suburbs, those buyers are just looking for something that’s new. We usually have 10 to 15 rehabs going on at any one time,” he said, noting that many of the homes are older and need major rehab involving plumbing and electrical systems, but are appealing to buyers looking for homes that feel “brand new” in established neighborhoods. “It’s not new construction, (but) for the buyer it feels like new construction so they are choosing that over other products in the marketplace. “People love fresh wide open spaces,” he noted. “Dark floors and white finishes have brought in a lot of buyers looking for that fresh 2016, 2017 décor.
Cleveland Flipping at 10-Year High A total of 1,589 single family homes and condos across the Cleveland metro area were flipped — sold for the second time within a 12-month period — in 2016, according to ATTOM data. That was a 10-year high in terms of the number of homes flipped and represented 6.2 percent of all home sales for the year. Investors who completed a flip in the third quarter of 2016 sold the property for $70,525 above their purchase price on average, a gross return on investment (not including rehab costs and carrying costs) of 155 percent — the highest gross ROI among 92 metro areas nationwide analyzed in the ATTOM Data Solutions Q3 2016 Home Flipping Report .
CLEVELAND HOME FLIPPING BY ZIP
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ATTOM Data Solutions • P19
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