Whether or not those features appeal to homebuyers, Bungalo will have to turn over houses at a time when flippers are accepting thinner margins. Flippers’ per-house returns have decreased in each of the past seven quarters, according to Daren Blomquist, senior vice president at Attom Data Solutions.
“As it becomes increasingly competitive, we’re seeing the margins on home-flipping profits squeezed,” Blomquist said. “The traditional home-flipping model is to buy property at a steep discount, add value by rehabbing and sell for a premium because it’s fixed up. These days, it’s tougher to get that discount on the front end.”
This article was provided by Bloomberg News.