House Flipping Has Become Less Profitable

Defined by Attom Data Solutions as a home bought and sold within a 12-month period, flipped single-family homes and condos had a 47.7 percent return on investment for investors in 2017's third quarter, the lowest since mid-2015.

Home flipping is still a popular business, with 49,000 homes flipped in the U.S. in the third quarter, the same amount as in 2016. More investors are flipping, however, the rate of flips per investor is down to 1.25, the lowest since 2008. CNBC reports that some of the metros with the highest flipping returns were Philadelphia, Baton Rouge, Louisiana, and Baltimore.

High-end real estate agent Tony Giordano, of the Opulent Agency, said he has multiple flipper clients right now, but the ones who get the highest returns are the builders ... "The key I see with your most common type flipper is that the carrying costs can be much lower today than in previous hot markets. Cost of construction is higher, but time to flip lower."

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