Investors who purchase homes in online auctions are more likely to hang onto them as rental properties than buyers purchasing homes at live auction events, according to a nationwide survey by Auction.com.

Most investors bidding at live events apparently intend to flip homes they purchase than rent them, with survey respondents indicating a preference toward flipping over “hold and rent” in every state where Auction.com conducted live events.

Intent of investors surveyed by Auction.com

Investor_intent_by_state_auctionDOTcom
Source: Auction.com

“It’s probably not a coincidence that some of the highest-priced markets, such as California and the Northeast, are seeing more flipping activity, since higher-priced homes are more difficult to rent out profitably,” Auction.com’s Rick Sharga said in a statement. “But it’s also very possible that part of the reason we’re seeing an increase in flipping is that in many of these markets there’s simply not enough new or existing home inventory to meet buyer demand.”

That shortage represents an opportunity for real estate investors who are able to buy, fix, and flip properties quickly and efficiently, he said

Auction.com’s survey also showed that the more active investors were, the more likely they were to flip homes instead of holding on to them as income properties.

Investor_intent_by_no_purchases_auctionDOTcom
Source: Auction.com

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×