The District is a hot area for house flipping, according to a report released Thursday by real estate brokerage Redfin, a place where investors can get the biggest return on their investment compared to other places around the country.
Northwest Washington’s Petworth neighborhood tops the list of the 25 hottest communities across the country where investors receive the biggest gains.
Three other D.C. neighborhoods made the list: Brookland in Northeast ranked Number 3; Fort Totten in Northeast, Number 7; and the Stadium-Armory area largely in Southeast, Number 8.
“It doesn’t surprise me” that the neighborhoods made the list, said Justin Pierce, a real estate investor who regularly chronicles his experiences buying, renovating and selling homes in the Washington area for The Post’s Where We Live blog.
Though he focuses primarily on Northern Virginia and Prince George’s County, Pierce said he’s familiar with activity in the city.
Petworth “definitely has been a hot area for flipping,” Pierce said. “It’s in a good location and an up-and-coming area where you can still get bargains.”
Redfin ranks the Washington area Number 1 among five metropolitan regions where flipping activity is increasing. According to the report, the number of houses in the area flipped in 2014 rose to more than 6,000 from more than 4,000 last year. The four other regions in the order of ranking are Atlanta; Fort Lauderdale, Fla.; West Palm Beach, Fla.; and Philadelphia.
According to Redfin, the average pre-flip price in Petworth is $353,800 and the average post-flip price is $666,200 — yielding a $312,400 gain.
In Portland, Ore.’s Beaumont neighborhood, which came in second, investors yielded an average of $285,600 flipping houses.
Brookland’s average pre-flip price was $314,500 and its post-flip price $586,400 — yielding an average gain of $271,900, according to Redfin.
The average pre-flip price in Fort Totten is $284,900, according to Redfin, and the post-flip price is $518,200 — yielding a $233,300 gain.
In the Stadium-Armory area, according to Redfin, the averge pre-flip price was $314,500 and post-flip average $544,800 — yielding a gain of $230,400.
Overall, the Washington region ranked 11 out of the top 27 metropolitan areas around the country in gains from house flipping. The San Francisco area ranked Number 1, gaining an average of $194,600 in flipping. The Washington area gained an average of $104,100, according to Redfin.
To see more of the report, click here.