With smart analytics, there are attractive returns to be made. Estimated 190% IRR on fix-flip deals analyzed by TheHomeSites.com
Oakbrook Terrace, IL -- (ReleaseWire) -- 04/19/2016 --2016 is a sellers' market but with smart analytics, investors can uncover attractive opportunities in the residential market. TheHomeSites conducted a study of 1,100 properties on its platform that are located across 5 states (California, Florida, Illinois, Indiana, and Texas) and found the following interesting observations:
1. The number of investable properties and average returns are dependent upon the "premiumness" of the neighborhood. Higher the "premiumness", lower the number of investable properties and lower the estimated returns. (See Fix and Flip Opportunities and Buy and Hold Opportunities charts)
2. Average estimated IRR (Internal Rate of Return that measures total returns during the investment life cycle) for Fix and Flip properties was 190% while average estimated IRR for Buy and Hold properties was 26%. However, there are more Buy and Hold opportunities compared to Fix and Flip opportunities (See Fix and Flip Opportunities and Buy and Hold Opportunities charts)
3. Indianapolis, IN, Chicago, IL, and Pensacola, FL had the highest number of investable properties with above average returns (greater than 20% cash on cash return). Peoria (IL), Jacksonville (FL), Rockford (IL), Anderson (IN), San Antonio (TX), Wichita Falls (TX), and Fort Wayne (IN) are the other cities in the top 10 of our list for investment opportunities
The attached infographic summarizes key findings of this study.
TheHomeSites is a platform for buyers to find bargain properties across their neighborhoods and for sellers to connect with active investors. TheHomeSites marketplace currently analyzes distressed properties in 5 states and presents investment insights to buyers. TheHomeSites also provides free advanced analytic tools to both home buyers and home investors. Home buyers can access the price analytic tool at www.thehomesites.com/homeowners and home investors can access a price analytic tool at www.thehomesites.com/investors.
For investors looking to raise money, please visit www.thehomesites.com/reapfund