According to the Orange County Register, record profits were earned by house flippers in 2016. Their records indicate that nearly $127,000 per flipped house were earned in Los Angeles County. The report continues by stating that flipped homes were purchased for $362,121, while the average sales price was $489,000.
Do you want to get in on the house flipping trend? The trend is still growing, with plenty of profits to be made by savvy house flippers. If you’re looking for which neighborhoods in Los Angeles are the best for ‘fix and flip’ investments, look no further. The following neighborhoods show great potential and promise.
This luxurious neighborhood is located on the west side of Los Angeles, right along the Pico-Fairfax Corridor. According to Business Insider, Faircrest Heights is one of the top ten up-and-coming neighborhoods in the entire country. There are approximately 900 single-family homes located throughout the neighborhood. These homes attract home buyers because of their Spanish Colonial architecture, along with the central location of the neighborhood.
Home prices in Faircrest Heights range between $500,000 and $1.2 million. Most of the expensive homes are located in the north and west parts of Faircrest Heights.
Anyone looking to fix and flip in this neighborhood will need a high amount of capital to purchase their first home. Additionally, many of the homes are already in great condition, so it will take regular hunting to find the right home to flip.
Located along the famed Route 66 in the San Gabriel Valley, Azusa is a community with a relatively young population of working professionals. The homes in Azusa are affordable, by Los Angeles standards, with a median price of $432,000. This new home price shows an increase of 9% over the previous year. The average price per square foot is below the Los Angeles average, clocking in at $315.
Fixing and flipping homes in Azusa will enable you to work with motivated buyers who yearn to live in this in-demand area. Just like with Faircrest Heights, you’ll have to be motivated to hunt down the right homes that are in need of fixing in order to make a profit.
Zillow, the reputable real estate website, has picked Cypress Park as one of the top hottest areas in 2017. Cypress Park is currently undergoing massive revival due to the expanding parklands. Additionally, a new bridge connecting Elysian Valley and Cypress Park is spurring new growth in both areas. According to The Los Angeles Times, Cypress Park is a ‘renovator’s dream’ due to the variety of housing styles and home sizes. The median sales price for a home in Cypress park is $566,100, which represents an increase of 8% over the past year.
Overall, Los Angeles is an ideal market for ‘fix and flip’ properties. The above neighborhoods show great potential and anyone interested in making money by repairing properties would be wise to find houses in these areas.