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INVESTMENT PROPERTY PRESERVATION TECH
TOP MARKETS
FOR REO 'FIX-
AND-FLIP'
BUYERS
With mom-and-pop REO investors
on the rise, where are investors finding the
biggest returns on their REO "fix-and-flip"
homes? In a new study of properties bought
and sold from October 2018 to October 2019,
Hubzu identified the top 25 U.S. metropolitan
statistical areas (MSAs) for fix-and-flip
investors.
e Hubzu data uncovered that the top
REO fix-and-flip markets are heavily focused
on the East Coast, with half of the markets
located in that area. Meanwhile, the West
Coast offers fewer opportunities for fix-and-flip
investors with only two markets making the
list—Riverside, California, and Tucson, Arizona.
According to Hubzu, Virginia Beach and
Richmond, Virginia, as well as Cleveland are
the top spots for investors pursuing REO
fix-and-flip properties based several factors
including the number of REO flip properties
in the market, profit after the repairs, and the
average number of days the listing is on the
market after repairs are complete. Meanwhile,
Washington, D.C., generated the highest
average profit of $51,806, whereas investors in
Memphis generated the lowest average profit
of $24,892. Investors in the top 25 markets
generated an average profit of $34,490 after
estimated repairs.
"Investing in fix-and-flip markets can
offer interesting cash flow opportunities
for investors, particularly in hot real estate
markets like those on the East Coast," said
Travis Britsch, VP, Auction at Hubzu. "Buying
any kind of investment property has the
potential to be a lucrative opportunity, but it's
important that savvy investors leverage the
right technology and resources to find the right
fix-and-flip property at a fair price so they can
make the most on their investment."
In 2019, Auction.com took a look at what
investment strategy is the best for whatever
your endgame would be. Advantages to
real estate investment compared to other
investment strategies include appreciating
property values, easy access to credit with a
property as collateral, equity buildup, and
deferred profits. ere are two main strategies
to real estate investment, Auction.com notes:
buy and hold, and fix and flip.
"Opting for a long-term or short-term
strategy in building your investment portfolio
is a personal decision," Auction.com notes.
"You should consider your investment goals,
capital availability, your risk tolerance level, and
flexibility as it applies to your exit strategy."
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