BYTHE NUMBERS
LOCAL MARKET MONITOR
tion of at least 1 million and an annual increasing in home flipping rate of at least 10 percent, were New Orleans (up 26.5 percent); San Antonio (up 25.2 percent); Dallas (up 20.9 percent); Boston (up 16.4 percent); New York (up 16.0 percent); Columbus, Ohio (up 14.6 percent); Oklahoma City (up 13.8 percent); Philadelphia (up 11.6 percent); Cincinnati (up 11.5 percent); Grand Rapids, Michigan (up 11.3 percent); Charlotte (up 10.5 percent); Kansas City (up 10.4 percent); and Cleveland (up 10.2 percent). ZIP CODES: ONE IN FIVE HOME SALESWERE FLIPS Among 5,625 U.S. ZIP codes with at least 10 homes flipped in 2016, there were 39 ZIP codes where at least 20 percent of all home sales during the year were accounted for six of the 39 ZIP codes with a home flipping rate of at least 20 percent in 2016, the best opportunity for flipping is in lower-priced neighborhoods with properties that need significant repairs, according to Brett Chotkevys, co-founder of Helpful Home Solution, who flips properties in Los Angeles and other parts of Southern California. “We do pretty much a full gut on the houses we buy. Most of those we buy are pretty nasty … they’re falling down, there are druggies living there,” said Chotkevys, noting that a typical rehab for his Los Angeles flips will run $40,000 to $50,000, and it’s not “inconceivable” for him to spend six figures on a Los Angeles fix-and-flip. “We like south central (Los Angeles) a little bit more. The barrier to entry is lower. We can pick up properties in the $200s. There are normal people not making gobs of money that can afford to buy these houses.” ABOUT ATTOM DATA SOLUTIONS ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environ- mental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial prop- erties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, home flips, including ZIP codes in Texas, Tennessee, Florida, California, Ohio, Vir- ginia, Pennsylvania, Missouri, Washing- ton, the District of Columbia, Maryland, New York and New Jersey. In the Los Angeles metro area, which
policymakers, and the media in multiple ways, including bulk file licenses, APIs and customized reports. ATTOMData Solutions also powers consumer websites designed to promote real estate transparency: RealtyTrac.com is a property search and research portal for foreclosures and other off-market properties; Homefacts.com is a neighborhood research portal providing hyperlocal risks and amenities information; HomeDisclo- sure.com produces detailed property pre-diligence reports. REPORT METHODOLOGY ATTOM Data Solutions analyzed sales deed data for this report. A single-family home or condo flip was any transaction that occurred in the quarter where a previous sale on the same property had occurred within the last 12 months. Gross flip- ping profit was calculated by subtracting the price for the first sale (purchase) from the price of the second sale (flip). Gross flipping return on investment was calculated by dividing the gross flipping profit by the first sale (purchase) price. •
Good Company IN AN UNCERTAIN ECONOMY, PLAY IT SAFE AND CHOOSE MARKETS WITH ABUNDANT RENTERS.
by Ingo Winzer
S
ometimes investors can do really well by playing ahead of the curve
converting single-family homes into multiple renter units is the best option. In others, you can just rent out a prop- erty as is. But in both cases, you’ll find plenty of demand. •
You’ll be in good company in these Top 10 markets because they have a large proportion of renters.
– for example, by buying a rental property in a market with few rentals if they know demand is going to grow. But
And demand will continue to be high because we expect home prices to keep rising at a strong clip. Renting will be even more favored in the future. These markets also have good job growth right now, which usually means growth will continue even as the
sometimes it’s best to play it safer, such as right now, as the economy becomes more uncertain. In these times, an
IngoWinzer is president of Local Market Monitor, which analyzes conditions in 300 U.S. markets, using such economic data as home values and growth in employment and population. Winzer, who has analyzed
real estate markets for more than 20 years, was a founder and executive vice president of First Research, an industry research company that was acquired by Dun & Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in finance from Boston Univer- sity. Winzer resides in Cambridge, Mass.
investment in a bigger, more settled market can be a better choice. The returns will still be good, but the risk is lower.
national economy cools off. In expensive markets like San Jose,
www.localmarketmonitor.com
3-YEAR HOME PRICE FORECAST
AVERAGE HOME PRICE (THOUSANDS)
PROPORTION OF RENTERS (%)
2017 POPULATION
AVG. MONTHLY RENT
LATEST JOB GROWTH (%)
LOCAL MARKET MONITOR
2,267,846
28%
$227
$1,241
4.2
41
Orlando, FL
4,500,745
31%
$237
$1,178
3.9
50
Dallas-Plano-Irving, TX
1,394,624
30%
$229
$1,182
3.6
36
Jacksonville, FL
1,838,844
33%
$289
$1,496
3.6
38
Ft. Lauderdale-Pompano Beach, FL
1,919,641
35%
$779
$2,086
3.5
45
San Jose-Sunnyvale, CA
2,697,476
40%
$345
$1,176
3.4
38
Denver-Aurora, CO
712,220
26%
$313
$1,145
3.2
38
Charleston-North Charleston, SC
819,743
27%
$281
$1,226
2.7
41
Tacoma, WA
2,314,554
28%
$330
$1,097
2.6
41
Portland-Vancouver, OR-WA
983,429
36%
$533
$1,638
2.1
48
Urban Honolulu, HI
Source :: Local Market Monitor
108 | think realty magazine may :: june 2017
thinkrealty . com | 109
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