House flippers suffer setback in New Orleans

House flippers suffer setback in New Orleans

People don't make as much money flipping houses in New Orleans as they did in the past.

According to our partners at New Orleans CityBusiness, RealtyTrac researchers say flippers made an average gross profit of $50,255 in the second quarter of this year. That's about 37 percent lower than the same time last year.

"Home flippers should proceed with caution in the next six to 12 months as home price appreciation slows and a possible interest rate increase could shrink the pool of prospective buyers for fix-and-flip homes," said Daren Blomquist, vice president at RealtyTrac.

Flippers are finding some of the best returns on homes with sales prices between $100,000 and $200,000 after renovations.

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