According to RealtyTrac, Dayton, Ohio ranked #10 in the nation for the highest average gross ROI from flipping houses. (Sorry Cincinnati, you didn’t make the top 20). Data is from the first quarter 2015.
RealtyTrac ROI Chart 1Q2015
53.7% for the average gross ROI sounds quite impressive. However, the Gross Profit in the report is simply the difference in the purchase price and the sale price.
You still have all those other pesky little expenses like the rehab, holding costs, sales cost, interest etc. Still, it’s nice to see a good spread to fit those expenses in.
Remember, the gross spread has zero bearing on a good deal. You still need an accurate ARV, Repairs, and MAO.