House flippers aren’t making as much money as they used to, but Louisiana had the highest return on investment for those in the game during the second quarter of 2018, according to a report from property database ATTOM Data Solutions.
At 102.5% of the purchase price, Louisiana recorded the highest average gross flipping return in the U.S., followed by Pennsylvania at 100.3% and Ohio at 81.4%.
In Baton Rouge, the ROI was even higher than the state average. At 107.1%, the metro area was ranked No. 5 for the highest ROI among 140 metropolitan statistical areas with at least 50 flips during the second quarter and a population of at least 200,000. Pittsburgh recorded the highest ROI, at 162.7%.
Houses flipped in the second quarter of 2018 yielded an average gross return on investment of 44.3%, down from 47.8% in the previous quarter and from 50% in the second quarter of 2017. It marks the lowest average gross flipping ROI since the third quarter of 2014.
The report shows a total of 48,768 U.S. single-family homes and condos were flipped in the second quarter of 2018, a rate of 5.2% of all sales—down from a 6.6% rate in the first quarter and from a 5.4% rate in second quarter 2017.
Houses flipped in the second quarter sold for an average of $65,520 more than what the flipper purchased them for, down from an all-time high average gross flipping profit of $69,500 in the first quarter.
