CLARKSVILLE, Tenn. (WKRN) – U.S. home flipping rates have reached a nine-year high, and it’s especially true in Middle Tennessee.
Perhaps it’s due to the popular show ‘Fixer Upper,’ or maybe, it’s because there’s good money to be made.
Clarksville is one of the most popular places to flip a home. It made it in ATTOM Data Solutions Top 10 Markets with the highest home flipping rate.
Obed Llanos is the owner of Middle Tennessee Restorations, he flips homes in Clarksville for a living.
“We do demo, we look at the condition look at everything we tore down and then we go from there,” Llanos said.
He says the final result is better than the money, but don’t let him fool you, the money is good too.
“This home was bought for a very low price, around $30,000. They invested 20 and now it’s worth about $160,000 and those numbers if you go somewhere like a nicer neighborhood, you’re not going to get that margin,” Llanos said.
News 2 asked him, why Clarksville?
“I think there are a lot of run-down homes in Clarksville and a lot of soldiers and students and I think that’s the reason it’s booming so hard. Buyers coming from Fort Campbell and Austin Peay State University,” he said, adding “Clarksville is the best option when it comes to distance and price.”
He noted that Clarksville is driving distance to the big city, aka Nashville, without the big rent.
Jennifer von Pohlmann, Director of Content and PR at ATTOM Data Solutions says Llanos is right.
“Tennessee is a great market because prices are still relatively low compared to the rest of the nation, so it’s ripe for investors to get in there and get a good gross profit on their returns,” Pohlmann said. “We’re seeing gross profits over 70-71% compared to the nation, it’s in the high 30’s so with prices low, investors are seeing the best money for their return.”
“The people when they come, they want something quick and something that looks nice,” llanos said.
And he’s providing. He uses his hands to build the house, allowing the owners to make it home.
Data shows Clarksville had 124 homes flipped in the first quarter of 2019 — at a rate of 10%.
The median purchase price was $92,000. The flip price is just over $155,000.