A Busy Time for Home Flippers in Chicago
Home flippers were especially busy in Chicago last year, according to a recent feature story from Crain’s Chicago Business.
The story, citing numbers from RealtyTrac, reported that 5,351 Chicago-area homes were flipped during 2015. RealtyTrac defines a flipped home as one that was bought and then resold within a period of 12 months.
That’s a lot of home flipping. In fact, it was up 33 percent from 2014. Crain’s said, too, that the number of Chicago-area home flips last year was the highest since 2006.
Overall, home flips made up 4.5 percent of the 120,000 or so home sales in the Chicago area last year, according to the Crain’s story.
The Crain’s story provided one good example of a successful Chicago home flip. A rehabbed two-flat in Chicago’s Rogers Park neighborhood sold for $560,000 in late November of last year. That sales price was $10,000 more than the rehabbers’ original listing price.
Why have home flippers been so busy here? Home prices have been rising steadily for more than two years in Chicago. This gives rehabbers the chance to make a profit once they’ve renovated the homes they’ve bought.
Of course, flippers do need a strategy to be successful. You can’t buy any Chicago house and hope to flip it for a big profit. You need to find a home that’s priced low enough to allow you to make a profit even after you spend thousands on renovations. And you need to buy a home in a neighborhood that’s popular enough so that buyers are willing to pay higher prices for it after it’s gone through the rehab process.
If you are interested in flipping a home, be sure to work with a REALTOR® who knows the city’s neighborhoods. This way, you’ll increase your odds of buying a home for the right price, one that will make it more likely that your flipped home will return you a solid profit.