A recent article in the New York Post found that property investors in New York are making an average of 15% profit on apartment flips. That marks a decrease from previous years, but still a substantial profit over investing in the stock market, which yielded 6% returns on average in 2015.
Of course, apartment flippers in New York have it tough. The cost of living is so high and demand is so extreme that it’s virtually impossible to find an underpriced condo in New York City to flip. The whole market is essentially a luxury market, which means bigger up front investments and smaller overall returns.
That’s not the case in other housing markets like Los Angeles, Riverside, and San Diego, CA. Out here, apartment flipping takes on a different style, and it can lead to even higher margins of return.
Rather than buying a single condo and flipping it, many California investors are choosing to purchase somewhat rundown apartment buildings in burgeoning neighborhoods, make improvements, and rent out the units for exceptional monthly income. These investors can then sell the units to another property owner in a few years and make additional returns on the overall property.
This buy and hold real estate approach is ideal for areas with growing populations, rising rent prices, and strong property markets, all of which can be found in California and other western states. Rents should continue to rise over the next few years as property prices go up as well, and vacancy rates are expected to remain exceptionally low. All of this is ideal for buy and hold investors.
Plus, rental real estate investing just got easier with our new Apartment Buy and Hold Loan program. Under the program, investors can take out buy and hold loans of up to $10,000,000 to finance the purchase of apartment complexes as large as 150 units. Rates start as low as 6.99%, and the term is up to 60 months.
We believe our new apartment flipping loans will help savvy investors earn excellent returns for years to come. Learn more about our new program by giving our team a call at 559.326.2509.