Of the 6,013 zip codes with at least ten homes flipped in 2018 and a population greater than 5,000, home flips in nine ZIP codes return average gross profits of above $500,000, according to the ZIP code level findings from ATTOM Data Solutions’ Q4 and 2018 Year-End Home Flipping reports.
Home flips in the 90291 ZIP code in Los Angeles returned the greatest average gross profit of $906,000. San Jose’s 94303 ZIP code came in second with an average gross profit of $769,000, followed by 90046, also in Los Angeles, at $755,000.
ATTOM notes that these high-return ZIP codes – which are for the most part located in high-cost markets on the West coast or in the Midwest– also require greater initial investments than the national average. On average, completed home flips yielded an average gross profit of $65,000 in 2018.
The highest home flipping rate was in 38141 in Memphis where home flips represented 29.5% of all home sales for the year. Other zip codes in the top 20 for highest 2018 home flipping rate included zip codes in Donna, Texas; Miami, Florida; Washington, D.C.; Jamaica, New York; Baton Rouge, Louisiana; Compton, California; and Phoenix, Arizona.
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