Greeneville, Johnson City home flip ROIs up; Kingsport-Bristol flips show Q1 loss

The number of homes flipped in the Tri-Cities is increasing and tracking the return on investments shows it’s not always the way to profits that some of the advertising touts.

Johnson City and Greeneville area flippers when for the lower end of the market in Q1 and profited. Kingsport-Bristol flippers targeted a higher price range and saw some losses.

Last year’s average ROI

RealtyTrac’s current analysis of home flipping shows the return on investment last year was 42% in Kingsport-Bristol. In the three-county Johnson City MSA it was 18%. In the Greeneville Micropolitian Area it was a 55% loss.

That wasn’t the case Q1 this year.

This year’s average ROI

The average ROI in Greeneville was 48% and 41% in Johnson City, but down 3% in Kingsport-Bristol.

Kingsport-Bristol by the numbers

During the first three months of this year there were a total of 13 flips in Kingsport-Bristol.

The average purchase price was $200,684 and the average sales price was $195,299 – a $5,385 loss.

Johnson City MSA by the numbers

Johnson City had 11 flips during the quarter. The average purchase price was $55,838 and the sales price was $78,800 – a $22,962 profit.

Greeneville by the numbers

The four Greeneville flips followed the lower-end market patter in the Johnson City MSA. The average purchase price was $65,000 and the average sale was $96,400 – a $31,400 profit.

According to RealtyTrac’s Q1 report, the percentage of flipped homes was down to 3.7% of the total homes sold, but profits from flipping are up to 30%.

Flip’s share of Tri-Cities sales

The proportion to sales locally was 2.2% in Kingsport-Bristol; 2.1% in Greeneville; and 2.8% in Johnson City.

While the share of flipped homes is shrinking, the average sales price of single-family homes flipped in the first quarter was $55,574 higher than the average original purchase price. That’s up from a year ago when the average gross profit per flip was $51,805, according to RealtyTrac.

Here’s what Q1 looked like on the county level:

County Avg Purchase Price Avg Flipped Price Flip-Purchase ROI
Greene $65,000 $96,400 $31,400 48%
Hawkins $345,500 $225,000 $120,500 -35%
Johnson $59,000 $52,000 $7,000 -12%
Sullivan $117,032 $107,005 $10,027 -9%
Unicoi $115,078 $32,600 $82,478 -72%
Washington $59,872 $87,950 $28,078 47%

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