12 top states for flipping houses with financing
September 20, 2017 6:44 PM
Lenders made an estimated $4.4 billion in loans to house flippers during the second quarter of 2017, up nearly 28% from a year ago and a high not seen since the third quarter of 2007, according to Attom Data Solutions.
The shift comes as distressed housing inventory has dried up, forcing investors to pay closer to market value and rely on price appreciation to generate a profit.
Nationally, only about one-third of flippers use financing for the initial home purchase. But on the local level, markets like Washington, D.C., and Colorado Springs, Colo., saw flippers use financing on more than 60% of transactions.
Here's a look at the 12 states with the highest share of investors using financing for flipping houses.
Want more? Check out 5 best and worst cities for house flipping ROI
The shift comes as distressed housing inventory has dried up, forcing investors to pay closer to market value and rely on price appreciation to generate a profit.
Nationally, only about one-third of flippers use financing for the initial home purchase. But on the local level, markets like Washington, D.C., and Colorado Springs, Colo., saw flippers use financing on more than 60% of transactions.
Here's a look at the 12 states with the highest share of investors using financing for flipping houses.
Josemaria Toscano - stock.adobe.com
No. 12: Oregon
Share of initial purchases financed: 39.4%
Number of home flips: 851
Median initial purchase price: $200,000
Average days to flip: 190
Number of home flips: 851
Median initial purchase price: $200,000
Average days to flip: 190
jonbilous - stock.adobe.com
No. 11: Virginia
Share of initial purchases financed: 39.5%
Number of home flips: 1,134
Median initial purchase price: $156,500
Average days to flip: 181
Number of home flips: 1,134
Median initial purchase price: $156,500
Average days to flip: 181
Christopher Boswell/Christopher Boswell - stock.adobe.com
No. 10: Nebraska
Share of initial purchases financed: 42%
Number of home flips: 262
Median initial purchase price: $106,000
Average days to flip: 195
Number of home flips: 262
Median initial purchase price: $106,000
Average days to flip: 195
JFL Photography - stock.adobe.com
No. 9: Washington
Share of initial purchases financed: 43.3%
Number of home flips: 1,672
Median initial purchase price: $203,500
Average days to flip: 188
Number of home flips: 1,672
Median initial purchase price: $203,500
Average days to flip: 188
trongnguyen - stock.adobe.com
No. 8: Arkansas
Share of initial purchases financed: 43.7%
Number of home flips: 254
Median initial purchase price: $106,450
Average days to flip: 183
Number of home flips: 254
Median initial purchase price: $106,450
Average days to flip: 183
Paul - stock.adobe.com
No. 7: Arizona
Share of initial purchases financed: 44%
Number of home flips: 2,746
Median initial purchase price: $160,000
Average days to flip: 166
Number of home flips: 2,746
Median initial purchase price: $160,000
Average days to flip: 166
Tomasz Zajda - stock.adobe.com
No. 6: Minnesota
Share of initial purchases financed: 46.3%
Number of home flips: 561
Median initial purchase price: $150,000
Average days to flip: 197
Number of home flips: 561
Median initial purchase price: $150,000
Average days to flip: 197
Henryk Sadura/Henryk Sadura - stock.adobe.com
No. 5: Wisconsin
Share of initial purchases financed: 47.2%
Number of home flips: 481
Median initial purchase price: $105,000
Average days to flip: 193
Number of home flips: 481
Median initial purchase price: $105,000
Average days to flip: 193
efaah0 - stock.adobe.com
No. 4: Massachusetts
Share of initial purchases financed: 49.5%
Number of home flips: 880
Median initial purchase price: $220,000
Average days to flip: 211
Number of home flips: 880
Median initial purchase price: $220,000
Average days to flip: 211
Olga - stock.adobe.com
No. 3: Rhode Island
Share of initial purchases financed: 50.6%
Number of home flips: 180
Median initial purchase price: $138,750
Average days to flip: 200
Number of home flips: 180
Median initial purchase price: $138,750
Average days to flip: 200
STEVEN PHRANER /sphraner - stock.adobe.com
No. 2: New Hampshire
Share of initial purchases financed: 57.7%
Number of home flips: 150
Median initial purchase price: $188,267
Average days to flip: 203
Number of home flips: 150
Median initial purchase price: $188,267
Average days to flip: 203
Tomasz Zajda - Fotolia
No. 1: Colorado
Share of initial purchases financed: 57.7%
Number of home flips: 1,666
Median initial purchase price: $230,000
Average days to flip: 188
Want more? Check out 5 best and worst cities for house flipping ROI
Number of home flips: 1,666
Median initial purchase price: $230,000
Average days to flip: 188
