The District has two of the three most profitable neighborhoods for property flipping: Petworth and Brookland.
Real estate firm Redfin looked at all residential properties that were sold last year within 12 months of being purchased, presumably by sweat equity individuals or investors and developers who intended to make property improvements then sell for a profit, and says the average profit on those sales nationwide was $90,200 last year, a record high and up from $71,800 in 2012.
Redfin looked at data going back to 2001 and found flipping has not always been profitable. Last year, 77 percent of houses or condos flipped reaped the seller a profit, compared to just 24 percent in 2008.
In D.C.’s Petworth, the average flipping profit last year was a whopping $313,400, three-and-a-half times the national average. The median selling price in Petworth is currently $436,000, with properties for sale getting an average of 3.3 offers.
In Brookland, the average flipping profit was $271,900. The median sales price in Brookland is currently $429,000, with sellers getting an average 8.3 offers.
Fort Totten and Stadium Armory in D.C. also made Redfin's Top 10 neighborhoods for flipping profits.
The metro Washington housing market as a whole remains in the top 10 for flipping profits, according to a quarterly report from RealtyTrac.
© 2014 American City Business Journals, Inc.