Encompassing 4,851 square miles, the Los Angeles-Long Beach-Anaheim metropolitan area is home to more than 13 million people. Counting nearly 4.6 million units in its housing stock, the metro area is well known for its beaches and mostly warm and sunny climate year-round, making it an attractive place to live.
These and other factors such as job growth and low unemployment make Los Angeles one of the most popular and desirable housing markets in the nation. Still, it remains a very challenging market for investors seeking to flip properties.
|Total Number of Flips||1,342|
|Home Flipping Rate||4.7%|
|Flipping Gross Profit||$161,500|
|Gross Return on Investment||30.0%|
Other highlights from the third quarter 2020 Home Flipping Report for the Los Angeles metro area include:
Home flips in the Los Angeles metro area during the third quarter of 2020 were down from their peak during the second quarter of 2005 when they numbered 4,201.
In all, 50.6 percent of all flipped homes in the Los Angeles metro were purchased by investors with cash, while 49.4 percent were financed. When sold, 16.1 percent of flipped homes were purchased by cash buyers and 10.0 percent went to FHA buyers.
On average, flipped homes in the Los Angeles metro area sold during the third quarter took an average of 196 days to complete.