4 Percent of All U.S. Single Family Home Sales in First Quarter Were Flips According to RealtyTrac U.S. Home Flipping Report - Seite 2

"Markets with the combination of distressed inventory, affordability and demand that are yielding the best flipping returns include places such as Baltimore, several metros in Central Florida, Detroit, Tucson, Pittsburgh, Memphis and Chicago," Blomquist continued. "Responsible flippers in these markets can do well by doing good -- providing a superior product for buyers and renters -- although in some cases this may mean betting on neighborhoods that are somewhere between down-and-out and up-and-coming."

Markets with the highest average returns on flipped homes
Among markets with at least 50 completed single family home flips in the first quarter, those with the highest average gross ROI were Baltimore (94.1 percent), Deltona-Daytona Beach-Ormond Beach, Florida (74.7 percent), Ocala, Florida (73.9 percent), Lakeland, Florida (62.5 percent), and Detroit (58.3 percent).

Other major markets in the top 20 for highest average gross ROI on homes flipped in the first quarter included Tampa (57.2 percent), Pittsburgh (55.2 percent), Memphis (54.8 percent), Chicago (52.9 percent), Seattle (49.0 percent), New York (47.1 percent), Washington, D.C. (44.2 percent), and Boston (44.0 percent).

"The decline in the number of homes being flipped in the Seattle area is due primarily to two factors: rising prices and low inventory. With the lowest month's supply of homes in our city's recorded history, competition is fierce," said OB Jacobi, president of Windermere Real Estate, covering the Seattle market. "So not only are there very few homes for flippers to choose from, but they're also competing with a mass of buyers who are willing to pay well above market value, and often in cash. These aren't exactly ideal conditions for investors looking to flip homes and make a profit but those who do will see a good return."

Markets with highest share of flipped homes
Among markets with at least 50 completed single family home flips in the first quarter, those where flips accounted for the highest percentage of all home sales in the first quarter were Memphis (10.6 percent), Ocala, Florida (8.0 percent), Miami (7.9 percent), Tampa (7.4 percent), and Sarasota, Florida (7.2 percent).

"Savvy investors are still finding opportunities in our robust real estate environment. The distressed inventory is waning but still being liquidated by the lenders, which bodes well for those individuals positioned to remodel and create turnkey properties for new homeowners," said Mike Pappas, CEO and president of the Keyes Company, covering the South Florida market. "We are witnessing an efficient capitalistic market where all players achieve their goals."