So you want to flip a home?
According to National Mortgage News over 100,000 homes were "flipped" in the US in 2012. It is apparent that investors in the Chicagoland area have contributed greatly to that number.
Some examples include:
(according to info I am pulling from the MLS)
87XX S Dante
sold for $172,000 in June 2012Â Â Â Â seller bought for $57,000 in August 2011
33XX W 84th Place
sold for $182,000 in April 2012Â Â Â Â Â seller bought for $54,900 in October 2011
14XX W 106th Street
sold for $217,000 in June 2012Â Â Â Â Â seller bought for $42,100 in December 2012
28XX N Monitor
sold for $257,500 in May 2012Â Â Â Â Â Â seller bought for $110,699 in September 2011
29XX Alta in Melrose Park
sold for $171,500 in May 2012Â Â Â Â Â Â Â seller bought for $35,900 in December 2011
I can go on and on with examples.... I am not a contractor but my research leads me to believe that an investor would look to put $45K to $65K into each home. As one can see, the math makes sense. However, rehab financing is difficult to obtain and takes away from profits so an investor(s) will likely have to do everything with cash.
This is a simplied blog and there are many other factors to consider which would take too much time to type. However, this moral of the story here is that the Chicagoland area is ripe for flipping homes.