Baltimore, Heaven for House-Flippers
Sometimes, people who flip (or attempt to flip) houses are savvy real estate speculators willing to funnel money into a gentrifying neighborhood; sometimes they’re cynical parasites, out to make a buck–witness this month’s successful court case against one of Baltimore’s most infamous absentee landlords.
Whatever their stripes, house flippers will be pleased to learn that Baltimore is one of the nation’s best markets in which to flip a home, according to Business Insider.
Per RealtyTrac data, 440 homes were flipped in the second quarter of this year, for a whopping 73 percent average gross return on investment. That’s more than three times as much as the national average profit for flippers. Speculators also made an average gross profit of $104,553. That’s not surprising, considering that Baltimore still has a whole lot of vacant housing stock, as well as one of the nation’s hottest housing markets. Cheap stock plus the promise of future profits equals lots of potential flippers with dollar signs in their eyes.
If the idea of a new Baltimore housing bubble makes you queasy, comfort yourself with the fact that Baltimore’s house-flip economy at least seems to be slowing down–those 440 flipped houses actually represent a 41 percent decline from last year.