You’re flipping houses to make money so where to buy in Philadelphia for maximum return on investment is a big consideration. Neighborhoods that are currently being revitalized just as we’ve seen happen in Brewerytown, Point Breeze and Kensington is where you want to be flipping houses. Fortunately, Philadelphia is a great city for flipping and making a profit! Did you know that the return on investment for flips in Philadelphia was the second-highest in the USA last year (2018)?
- Detroit 95.9% ROI
- Philadelphia 92.8% ROI
- Pittsburgh 75% ROI (CoreLogic April 2019 Special Report)
In addition to selecting a neighborhood that is in the process of being revitalized, here are four things you can do to raise your sale price and maximize your ROI.
Aim for curbside appeal
Homes that look rough and shoddy from the curb take longer to sell and sell for less. Homes that look great from the curb always sell much better. Start with the number on the house—it should be brand new and highly visible. A new front door is usually worth it and adding on a security lock for keyless entry will impress buyers. Even if you only paint or clean the front of the house, it’s worth doing. Mow the lawn and put some flowers in the beds.
Offer more than other flippers
If you’re reselling mostly to buy-and-hold investors, determine how you could offer them more than other flippers. For example, if your rehab included upgrading the HVAC system, electrical or plumbing and installing the major appliances, why not offer your own personal one-year warranty? If you have a frequent buyer, ask them what finishes or rehab work you could do to make your flips even more to their liking. Don’t hesitate to ask your buyers where to buy in Philadelphia.
Have houses to sell when demand is the highest
If you’re flipping to sell retail, time your flips for completion in April when people start shopping for or in September after school starts when house shopping surges again. Listing your flips for sale in December won’t generate nearly the same level of response.
Meet market demand
A real estate investor in Center City noticed that there were good homes for sale below $700,000 and great homes for sale over $1,000,000, but nothing in the range of $700,000 to $1,000,000. He built four very good homes and easily sold them for $825,000 to $950,000. House flippers can do this too, especially if you’re selling to the retail market. Find out the price points where the housing supply is insufficient and then fix and flip the kind of homes that can be improved to that price range.
Summary
Determining where to buy in Philadelphia is strategically important, for sure, but flippers who aim for curbside appeal, offer more than their competitors, time their retail flips for when demand is high, and meet unmet market demands sell their flips for more money and maximize their return on investment.