Want to flip a house? Forget the Hollywood Hills and head to Highland Park. A “Flip Analysis” produced by Land Advisors, a broker that specializes in land sales, shows that homes that were bought and sold by investors in Highland Park – a flipper hot spot – sold on average for 73% more than what the investor paid, according to a survey of some properties. In contrast, a Hollywood Hills flip sold for 41% more on average (click on the link below for a chart). The survey is far from comprehensive and it does not reveal how much a flipper made on the property after expenses. But the analysis provides an idea of the large increases that take place in the wake of a house flip and the potential financial rewards attracting investors. While Highland Park flippers saw prices soar, investors also posted impressive price increases in Glassell Park, where the average post-flip sales price rose 69%, and Silver Lake, with a post-flip increase of 62% , according to Land Advisors.
A word of advice to flippers who simply slap a coat of sage green paint on the walls and spread wood chips across the front yard. According the Flip Analysis, homes that underwent with minimal improvements, such as new grass and paint, may have seen a 10% to 20% increase in value. In contrast, homes that were completely gutted and remodeled homes reported increases of 50% to 100% and “more than double in value in some instances.”
|Pre-Flip Average Sales Price||Post-Flip Average Sales Price||% Change|
|Source: Land Advisors|