House flipping–buying a house or property with the intent to sell it for a profit–has always been a popular way to invest in the real estate market. In Middle Tennessee, the market has been on the mend (and continues to improve daily) making it a hot spot for flipping.
Aside from the strengthening market here in Middle Tennessee, Nashville has received a lot of publicity lately for being, well, awesome. Publications including GQ, The New York Times and Conde Naste Traveler have all championed Nashville as being one of the U.S.’s hottest “it” cities.
Even more recently, Nashville was named one of the 10 best cities to work and was ranked no. 2 by Forbes as the best city for jobs in 2013. Citing the overall affordability and quality of life in the area, Forbes said Nashville’s ample cultural amenities, pro-business policies and mild climate make it a success for jobs with proven long-term growth rates (there’s been a 16 percent increase in added jobs since 2001!).
All that to say, Nashville really is a great spot to invest if real estate is your thing. And flipping can be a great way to get your foot in the door if you are smart with your decisions and don’t wait too long. More than 1,200 homes were flipped in Nashville last year, up 65 percent over the previous year. Flippers tend to migrate to up-and-coming urban neighborhoods: current hot spots include Nashville’s Salemtown area, north of down, The Nations in West Nashville and Inglewood in East Nashville.
Whether they are bringing an existing property down to the studs or razing the lot completely to start fresh, with the current seller’s market, flippers are not having any issue getting properties sold upon completion.
Of the top 25 markets where flipping houses had the highest returns, profit margins ranged from 8 to 63 percent. Nashville ranked no. 8, with a 35 percent profit margin. Orlando was ranked no. 1 with a staggering 63 percent profit margin. (Those numbers are with an average purchase price of $108,000 and an average sales price of $146,000.)
While house flipping sounds like a great way to invest, it can be difficult and includes many well thought and calculated decisions. If you’re interested in getting involved in the real estate market this way, give us a call. We’ll be more than happy to sit down with you and talk through your options and walk you through the process.
(Article Source: “Flipping Nashville” by Nevin Batiwalla as found in the Nashville Business Journal)