Hollywood house flippers are raking in millions – can YOU cash in too?
A new generation of Hollywood house flippers like Miley Cyrus and Vanessa Hudgens are raking in millions – but can YOU cash in too? We reveal the best states to turn a property profit
- A record 407,000 properties were flipped in the US last year
- Investors pocketed an average of $67,900 per home – a 14-year low
- However, 13 states still recorded increases in profits of up 243 percent
A new generation of Hollywood house flippers – including Miley Cyrus, Ariana Grande and Vanessa Hudgens – are raking in millions by snapping up luxury homes then swiftly selling them on at a profit.
But it’s not just stars with deep pockets eager to get in on the action. Regular investors in the US are also keen to make some extra cash, with the number of properties flipped last year shooting up 14 percent to a 17-year-high of 407,000, research by data provider ATTOM revealed.
Mortgage rate increases and high inflation – which has pushed up renovation costs by between 20 and 35 per cent – means the average profit pocketed per home has dipped to $67,900.
The is lowest sum recorded since the housing market crashed in 2008 – but still considerably more than the $30,000 home owners made that year, and just a couple thousand dollars shy of the 2021 high of $70,000.
And, when experts drilled into the data, 13 states emerged as flipping hotspots, with the average profit increasing by as much as 243 percent between 2021 and 2022.
Miley Cyrus and Vanessa Hudgens are part of a new generation of Hollywood house flippers who are raking in millions selling luxury homes
The combined impact of rising inflation and higher mortgage rates saw house flipping profits shrink in all but 13 states
Even sellers in states that saw substantial dips – such as California, Delaware and New York – still recorded generous average returns of up to $200,000.
ATTOM, which has examined house flipping activity since 2005, found that the average investor bought a home for $252,100 last year, then sold it on for $320,000 after 164 days.
States including Florida, Texas, Georgia, Arizona and California proved most popular for flipping.
And while the largest profits were seen in New York City, Washington, D.C, San Francisco, and Seattle, real estate prices in these areas are among the highest in the country, so investors have to put down more money to begin with – the result being considerably less profit compared to 2021.
On the opposite end of the spectrum, the lowest profits were recorded in Indianapolis, Houston, Dallas, San Antonio and Kansas City.
A further challenge for investors in 2022 was finding a house to buy. Home sales rose by 14.5 per cent between January and February as buyers, sensing mortgage rates would soar, rushed to snap up properties.
Miley Cyrus made an impressive $2.3million profit after flipping her fancy home in the Hidden Hills area of Los Angeles
The Wrecking Ball singer sold the six-bedroom home for $7.2million in April 2021
The sale came just a year after she splashed $4.9million on renovations
This was the biggest monthly increase since July 2020, when city dwellers fled to greener pastures of the suburbs during the early days of the pandemic.
Celebrities, meanwhile, who have been property flipping for decades, have the wealth to take it to another level.
Grammy-winning artist Grande sold her stylish Montecito home in Santa Barbara to Michael Kives, the co-founder of investment firm K5 Global, for $9.1million last September.
The sale came just two years after she paid Ellen DeGeneres $6.8million for the two-bedroom 18th-century mansion, which was originally constructed as two separate barns in England.
Wrecking Ball singer Miley Cyrus also made an impressive profit after flipping her fancy home in the Hidden Hills area of Los Angeles.
She sold the six-bedroom mansion for $7.2million in April 2021, having splashed $4.9million on it the year before – which meant she pocketed a healthy $2.3million profit.
Vanessa Hudgens in the Los Feliz home she sold for $6.7million in March 2022. She bought the house for $4.9million in December 2018
Vanessa Hudgens was featured on Architectural Digest a few months before she sold the property
In March 2022, former Disney Channel star Vanessa Hudgens flipped a house in Los Feliz, Los Angeles, for $6.7million, after working with designer Jake Arnold to remodel it. She’d bought it from Gary Oldman for $4.9million in December 2018.
Similarly, actress Ashley Tisdale paid $4.2million for a three-bedroom property in the exclusive Hollywood Hills in 2021 before she sold it to singer Madison Beer for $5.9million two years later.
The sale came six months after her home was featured by Architectural Digest. Cyrus and Hudgens had both also granted the magazine full access to their homes before they later flipped them.
And Sofia Richie, daughter of legendary Commodores singer Lionel Richie, sold the Beverly Hills home she shared with her music executive fiancée Elliot Grainge for nearly $22million – after buying it for $17million just 10 months earlier.
Grammy-winning artist Grande sold her stylish Montecito home in Santa Barbara for $9.1million
The sale came just two years after she’d paid Ellen DeGeneres $6.8million for it
The two-bedroom 18th century home was originally constructed as two separate barns in England
Actress Ashley Tisdale paid $4.2million for a three-bedroom property in Hollywood Hills in 2021 before she sold it to singer Madison Beer for $5.9million two years later
Her home was sold six months after it was featured by Architectural Digest
The ATTOM numbers in detail:
Hawaii recorded the largest increase in flipping profits, with the average sum made per home rising 242.9 percent from $17,500 to $60,000 compared to 2021.
Mississippi investors enjoyed a 107.9 per cent rise from $18,491 to $38,441 and Ohio saw profits increase by 35.6 per cent from $39,000 to $52,900.
Louisiana‘s average profits rose by 11.2 per cent to $75,000 from $67,450, there was a 9.7 per cent jump in Iowa from $55,000 to $60,334, and a 9.1 per cent increase in the District of Columbia from $197,000 to $215,023.
Wisconsin saw profits climb by eight per cent to $55,000 per home from $50,900 and there was a 7.7 per cent jump in Minnesota from $49,450 to $53,251.
Illinois and Florida rounded out the top ten with a 7.1 per cent increase in profits from $71,872 to $77,000 and $70,000 to $75,000 respectively.
At the other end of the scale, Idaho recorded the largest decline in profits, with the amount made halving from $51,664 to $25,550 in 2022.
It was followed by Oregon, which saw a 32.9 per cent decrease from $79,000 to $53,008.
Profits in Kanas fell by 28.3 per cent from $50,702 to $36,346 and they plummeted by a quarter in Arizona and Montana from $60,000 to $45,000 and $50,400 to $37,705 respectively.
There was a 20.8 per cent drop in profits in New York from $111,759 in 2021 to $88,500, a 20.2 per cent fall in Indiana from $45,550 to $36,355 and an 18.5 per cent decrease in Arkansas from $65,000 to $53,000.
Delaware saw its profits fall from $235,000 to $193,245 – a 17.8 per cent drop – and California saw a 16.3 per cent decrease from $104,000 to $87,000.
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