Size of the Fix and Flip Mortgage Market
According to Attom Data Solutions (http://www.attomdata.com/), 53,638 single family homes and condos were flipped nationwide in the second quarter of 2017 with the trailing 12 month volume of house flipper purchases approaching $45 Billion.
The percentage of these purchases was 35% up from 32.3% during Q2 2016.
Assuming properties have approximately 25% equity, we could see a total invest-able mortgage market of $11.8 Billion (35% * 75% * $45B). Mortgage insiders typically quote the market as much larger because of private mortgages and funding that does not get recorded on industry databases.
To see the geographic areas by ZIP code where house flips are a large percentage (at least 25%) of the market, a breakdown is detailed below. Areas in the Atlanta, Baton Rouge, Memphis, Miami and of course Los Angeles have high flipping rates. 2017 Q3 data should be available in the coming weeks so we can highlight any changes from Q2.
Disclaimer - This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.