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Real estate market ready for house flipping?

May 18, 2010 12:00:00 AM PDT
New numbers show changes in the local real estate market. Sales are moving from inland bargain areas to entry and mid-market homes closer to the coast. The recent changes have also resulted in more homes getting flipped.

In Lynwood, a home was in foreclosure and the owner bought it just a few weeks ago for $200,000. And when the work is all done he expects to sell it for over $300,000, making a healthy profit.

There is no doubt, house flipping is back.

"Big time. Yea, there's investors like myself," House Flipper Greg Toussieng said. "We're flipping a lot of houses."

Toussieng is an investor whose is always looking for a house to flip and says he wants properties that need work.

"Most of our properties we're looking at electrical, full electrical, full plumbing, redoing the kitchens the cabinets. Complete rehab," Toussieng said.

Prudential Realtor Rudy Sandoval works mainly with investors and says house flipping is most common in lower income areas where home prices are lowest and foreclosures are highest.

"All it is buying the property at the right time for the right price," Sandoval said.

The L.A. Times says Watts is at the top of the list with over 16% of flipped homes in the Southland.

Following Watts is Gramercy Park, East Compton and Santa Ana.

"Ninety nine percent of our homes sell for the top, comp in that neighborhood," Toussieng said. "So were helping the prices come up, the values come up and it's a win win for everybody."

Toussieng says with most homes he flips he expects 20 to 25 percent profit especially now.

I am having a much better success," Toussieng said. "In this market, what I find is the more that needs to be rehabbed the more the reward. And the properties are selling very quick."


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