Even with the uncertainty of the economy being clearly debated by everyone, including the presidential candidates, both professional flippers and local hipster flippers are jumping into the Los Angeles housing market. According to an ABC World News Report aired on Monday, 25% more houses across the nation are being flipped this year compared to last year and sellers are walking away with an average profit of $29,000. That is a tight margin on a high stakes gamble. Although, with the housing inventory being so low and demand so high in Los Angeles, I would bet that the profit margin is much wider here and less of a risk. Many Brokers in Los Angeles including in the areas of Hancock Park, Los Feliz, West Hollywood and the Hollywood Hills agrees that 25% to 30% of the houses that sold this summer are flips.
The good news is with this new generation of house flippers many greedy speculators are being replaced by consensus buyers. Daren Blomquist of RealtyTrac believes flippers now are much more savvy and are actually rehabbing the properties. Hopefully the average Joe getting in the game will create a superior product and stable housing market for the long term in Los Angeles.
In this video clip an ABC reports talks to local Los Angeles hipster flippers couple Greg Steinberg and Alexandra Becket of ModOp Design as they walk through their current Los Angeles house project under construction and discuss how they are planning to make a $50,000 profit on this flip sale.