LAS VEGAS -- Shrewd real estate investors made Las Vegas the nation's second most profitable metropolitan area to flip homes in 2012, RealtyTrac.com reported Thursday.
The real estate analytics website based in Irvine, Calif., reported that Las Vegas flippers averaged a 53 percent gross profit on 4,341 single-family residences. That trailed only Orlando, Fla., where flippers averaged 63 percent profit.
RealtyTrac calculated that the average Las Vegas residence was purchased for $133,198 but flipped last year for $203,945, a gross profit of $70,747. That profit margin was third highest in the U.S. behind San Jose, Calif. ($103,241) and San Francisco ($80,306).
The company also reported that Las Vegas home values in the first quarter of 2013 rose 24 percent over the same quarter in 2012.
RealtyTrac arrived at its rankings by looking at 600 U.S. metros and then narrowing its list to those that had at least 500 flips in 2012 and a minimum 9 percent increase in home values from the first quarter of 2012 to the first quarter of 2013.