The state of New Jersey has so many locations that are experiencing great returns on fix and flip transactions that it almost seems like the entire state is undergoing renovation and resale. With major metropolitan areas both inside and just outside its borders and ample aging housing stock, the state has a range of opportunities for both beginning and experienced flippers.
Fix and Flip Activity North of Newark
Three towns north of Newark have seen robust fix and flip activity in the first quarter of 2017. North Bergen, Belleville and Kearny all had real estate sales that exceeded 10 percent of total sales over this time period. In total, there were almost 40 transactions, with an average sales price 77 percent higher than the purchase price.
Of course, there is no way to determine the actual ROI without knowing the repair costs, but the spread between purchase and sales prices suggests a healthy profit. In addition, an average turn-around of 206 days suggests the flipped properties required something less than major renovations. The average purchase price for the approximately 40 transactions was around $177,000, with Belleville coming in cheapest with an average of $156,000.
Flipping Homes in Newark and Points South
This robust activity continues through Newark and extends along the shore to communities including Roselle, Perth Amboy and Tom’s River. Tom’s River dominated the number of transactions in this group with half of the 80 total, but the 40 flips there were in line with the average flips for real estate transactions. The average sales price for the 4 communities was a remarkable 143 percent more than the purchase price.
The average purchase price for all 4 locations was very close to the average of $96,000, suggesting the market might be more suitable for flippers who are starting out or want to work smaller transactions. The average flip time was still around 200 days, although Newark and Perth Amboy were lower by about two weeks and Tom’s River brought up the average with a 222 days average for its half of the total flips.
Fix and Flip Activity Heading West
Areas on the west side of the state that have an easy commute to the metropolis of Philadelphia saw an incredible amount of fix and flip activity in the first quarter of 2017. Towns such as Willingboro, Mercantville and Gloucester City saw almost 60 flips, which accounted to a much higher percentage of total real estate transactions than other areas. In Gloucester City flips accounted for over 25 percent of total transactions.
Returns were remarkable as well, with an average sales price of 167 percent of the purchase price. Gloucester City brought up the average with a 200 percent increase! However, it also led the pack with an average flip of about 230 days, a full 3 weeks over the average of 209 days. This area was also the least expensive to purchase, with an average of only $53,000. Again, Gloucester City was an outlier with an average purchase price of only $24,000.
This list is not exhaustive. Fix and flip activity is taking place in the New Jersey areas with easy access to Allentown and Bethlehem, Pennsylvania as well. All told, fix and flip investors can pluck the right project for them out of the Garden State.
All figures derived from or provided by Realtytrac.com
