Nassau County is one of the nation's most profitable counties for home-flippers, a new report suggests.
During the 12 months ended in March, 210 Nassau homes were flipped -- or bought and then resold within six months -- with an average purchase price of $316,060 and resale price of $422,858, giving investors a nearly 34 percent return, RealtyTrac reports. The return calculation doesn't factor in the cost of renovation and taxes, which would reduce any potential profit.
Nassau ranked 13th among counties where real estate investors can expect to profit from buying and quickly reselling properties, the Southern California-based real estate tracking company reported.
The top ranking went to Prince George's County in Maryland, where investors made an average return of 83 percent, with investors buying homes for an average $125,011 and selling them for $229,275.
The conditions in Nassau are favorable for home flippers, since home prices and new foreclosure filings are both on the rise, Daren Blomquist, a vice president with RealtyTrac, said Monday.
Nassau had a 4 percent uptick in new foreclosure filings in the first three months of 2014, compared with a year earlier, RealtyTrac reported. Nassau homes sold for a median price of $410,000 in April, an annual gain of 5.7 percent, according to the Multiple Listing Service of Long Island.
Demand for fixed-up homes is strong in Nassau County, with many home buyers looking to relocate from New York City, said Chris DiJorio, co-owner of DB2 Properties LLC, a real estate investment firm in Stony Brook that buys, renovates and resells homes.
However, investors also face high costs and stiff competition, DiJorio said. "The scale of the renovation is the biggest factor," with typical costs ranging from $60,000 to $90,000, he said.
RealtyTrac data indicated that 1.8 percent of homes purchased in Nassau County were flipped.
RealtyTrac did not have reliable data on home flipping in Suffolk County, Blomquist said.
In compiling the rankings, RealtyTrac examined counties where at least 100 homes were bought and resold within six months; where unemployment was below the national average; and where new foreclosure filings are on the rise, giving investors more homes to choose from. RealtyTrac excluded bank repossessions, sales between family members and newly built homes from the numbers of flipped homes.
See RealtyTrac's nationwide interactive map at www.realtytrac.com/rnshared/heatmaps/Flipping/. Click on the community for a pop-up window.