Charlotte has much going for it. For investors, income from house flipping is one of the many benefits of living in Charlotte and the surrounding communities. Recent statistics show that house flipping continues to bring high return on investment in Charlotte and neighboring communities. In Mecklenburg County, the first quarter of 2016 was a profitable one, and many house flippers in Charlotte were able to enjoy the fruits of their work this quarter.
In the first quarter of 2016, house flippers in the county averaged a gross profit of $59,000. The first quarter of 2015 saw profits of $41,134, marking a significant increase. House flippers are simply making better income this year compared to last. These numbers represented a 59 percent ROI, up from 44.3 percent in the same quarter last year.
In the first part of this year, Mecklenburg County saw 251 successful house flips, which was 6.5 percent of the total sales of single-family properties and condos. This is close to the national average, as across the nation house flips accounted for 6.6 of all sales. This is down since the peak in 2006, when flipped houses accounted for 9 percent of all sales, but the trend has been going up since its lowest point in 2014.
Interestingly, flipped houses sold faster in Mecklenburg County than the rest of the country, and faster this year than last. It took an average of 165 days from the lose of the purchase to the close of the sale of flipped houses in Mecklenburg County. This is compared to 174 days last year and 179 days nationally in the latest quarter. Increased demand for properties in Charlotte and the surrounding community can be part of the reason for this shorted time on market.
What does this mean for Charlotte area investors? With strong ROI for house flippers across the county, this is a good time to consider investing in the Charlotte market. However, one potential drawback is a lessening of the number of distressed properties in Charlotte. Those investors who can find foreclosures and short sales should act on them quickly to take advantage of the profitable trends in the County as a whole.