Home flips and fix-and-flip overview and market size

Takeaways

  • A home flip is when an investor buys a house, renovates it, and then quickly sells it for a profit. Fix-and-flip is simply another word for a home flip.
  • The average home flip takes about 180 days from purchase to sale.
  • Roughly 200-250K homes are flipped each year.
  • The total sales value of annual home flips is $500-650 billion.
  • The average home flip generates around $60,000 in profit and close to a 40% return on investment.
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What is a home flip?

A home flip is when an investor buys a house, renovates it, and then quickly sells it for a profit.

What is a fix-and-flip?

Fix-and-flip is simply another word for a home flip. But it is often used to refer to any loans that home flippers take. Fix-and-flip loans are also called hard money loans or private loans.

How long does the average home flip take?

The average home flip takes about 180 days from purchase to sale.

How many homes are flipped each year?

Roughly 200-250K homes are flipped each year. They typically represent 5-10% of all homes sold.

What is the market size of home flips?

The total sales value of annual home flips is $500-650 billion. The number can vary depending on the strength of the fix-and-flip market in a given year.

What is the average purchase price for a home flip?

The average home flip is purchased for around $155,000 and sold for close to $215,000.

How much profit is generated per home flip?

The average home flip generates around $60,000 in profit and close to a 40% return on investment. But this number excludes the cost of renovations, which can be anywhere from 20-35% of the after-repair value of the home.

What are the average rehab costs per home flip?

Fix-and-flip investors typically invest 20-35% of the after-repair value of a flip to renovations. This would be $43-75K on a typical home flip.

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