Dr. Housing Bubble 12/08/14

Flipping and gentrifying: The art of flipping homes in lower income areas. If you remodel it, will the people come? A case study in Inglewood.

Flipping is only lucrative on a large scale when you have a strong uptrend in real estate. It is hard to make a sizable profit when markets are more fluid especially when appreciation rates are tied to more historical standards. But California is destined for at least our lifetimes to be a boom and bust state. Given the harder to find deals and the blocks of $700,000 crap shacks in pseudo wealth areas, many would be flippers are inching deeper into the inner city. Time to make those profits in Compton. I’ve noticed that flippers have pulled back for the most part but we still have those chasing profits in many areas across the Southland. I’m sure you have many Friskies eating boomers living in these old areas saying “you are willing to pay what for this place?!” Some are likely to take the golden ticket. Most will live out their days eating gruel and looking at their 30-something or 40-something kids counting the days until they kick the bucket and finally can afford a piece of California housing via inheritance. Yet housing is a live action market. You are either paying rent or buying a place. That is it. So let us look at Inglewood today and a flip that is happening right now.

The flippers in Inglewood

According to the latest IRS tax data, the average adjusted gross income for the 90304 zip code of Inglewood is $26,344. According to Census data, the median household income is $44,558. 20 percent of the population here lives below the poverty line. I’m putting this out there because this is not a high income area by any stretch.

Yet apparently, this is a good market to flip in. The bet that some flippers are making is there are plenty of lemmings out there willing to stretch their budgets to purchase this place even though it is clear incomes in this market are not high.

Let us look at our case study:



11144 Dalerose Ave, Inglewood, CA 90304

3 beds, 3 baths, 1,244 square feet

I like the drought resistant front lawn. Let us look at the ad:

http://www.doctorhousingbubble.com/flipping-flippers-gentrification-inglewood-housing/