Carter Co. has best investment return on house flips in Tri-Cities


By DON FENLEY

The Tri-Cities isn’t fertile ground for house flipping as metered by RealtyTrac’s current report.

The markets are not large enough, the unemployment rates are too high and foreclosure activity isn’t high enough. But there were some impressive numbers in the report. For example, the gross return on investment with the Carter Co. flips was 131.8%.

If you added all of the flips in the past 12 months for the six counties where data is available you’d be able to reach RealtyTrac’s benchmark of 100 flips. But it goes downhill from there.

The other criteria:

–        Have an average 30 percent or better gross return on the flips.

–        Have an unemployment rate below the national average of 6.7% in March.

–        Have an increase in foreclosure activity in the first quarter of 2014 compared to a year ago.

Two local counties met the gross return on profit criteria (Carter and Sullivan).

One county was below the unemployment benchmark (Washington)

None of the local six counties where data was available met the change in foreclosure activity standard.

Here’s how house flipping fared during the past 12 months.

County  Flips Avg Purchase Price Average Sale Price  Gross Return on Investment Overall Median  Price Q1 2014 v Q1 2014 Change in Foreclosures
Carter 12 $34,846 $80,789 131.84% $67,500 -16%
Greene 19 $64,574 $79,563 23.21% $42,500 0%
Hawkins 16 $90,250 $100,550 11.41% $80,054 -48%
Sullivan 45 $64,789 $101,981 57.40% $91,154 -32%
Unicoi 4 $93,726 $73,200 -21.90% $60,199 -63%
Washington 33 $103,721 $127,939 23.35% $110,000 -7%

© Don Fenley

 

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