Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

Which cities are best for flipping houses?


Download PDF

Making money by flipping property has become as much of an American dream as homeownership.

The full spectrum programming on HGTV is a testament to how much we want to believe that we can make money off flipping houses, in small towns, in cities — anywhere there is a deal with good bones to be had.

Although many different factors make this dream potentially one that’s more made for television than for real life, it’s a universal impulse when seeing a fixer to wonder, what if?

In many markets across the country, the market has met or surpassed the peak prices of the housing bubble. Factor in inflation, and there may still be a little run-up to full peaks, but for some markets, the question does remain as to how much more runway there is for prices and the market in general.

This can make it hard to get in at the ground floor to nab a property worth rehabbing.

On the plus side, low housing inventory continues to plague the market, especially at the lower end. Another factor in the flipper’s favor is that many millennials prefer turnkey homes and aren’t as interested in fixers.

6 ways empowered agents embrace disruption to drive success Using technology to generate leads and win listings READ MORE

WalletHub recently evaluated 150 of the largest U.S. cities across 22 key factors to see where the living is good and the flipping is most profitable.

There were more house-flipping investors in 2016 than there have been since 2007, over 126,000 intrepid folks. With an average gross profit of $62,624 in 2016 — the highest amount since 2000 — the allure of the flip is strong.

Where do flippers prosper?

Coastal markets are mostly off limits, and smaller towns tend to offer more opportunity. The top 10 cities to flip houses were:

1. El Paso, Texas 2. Sioux Falls, South Dakota 3. Fort Wayne, Indiana 4. Peoria, Arizona 5. Oklahoma City, Oklahoma 6. Tampa, Florida 7. Grand Rapids, Michigan 8. Boise, Idaho 9. Greensboro, North Carolina 10. Springfield, Missouri

Where do flippers lag?

The most challenging cities for flippers were led by cities where the cost of buying in is high. The bottom 10 were dominated by large California markets and major cities:

141. Honolulu, Hawaii 142. Boston, Massachusetts 143. San Jose, California 144. New York, New York 145. Oxnard, California 146. Los Angeles, California 147. San Francisco, California 148. Newark, New Jersey 149. Yonkers, New York 150. Oakland, California

The best and worst only tell part of the story.

WalletHub also analyzed specific factors. Pittsburgh, Pennsylvania, had the highest average gross return on investment at 130 percent — 5.9 times higher than in San Jose, California, the city with the lowest at 22 percent. Pittsburgh also had the lowest percent of house flips.

Looking for a low buy-in? Head to Cleveland, Ohio, which has the lowest median purchase price at $46,250, and steer clear of, once again, San Jose, California, the city with the highest at $654,250.

When considering a flip, it’s important to look at a variety of factors, the first being location. Understanding a home’s potential is not just about the house itself but the overall health of the area it is in.

As Robert B. Kent, professor in the department of urban studies and planning at California State University, Northridge notes: “You can fix the house, but you can’t change the neighborhood.”

WalletHub’s experts also cautioned on over-renovating. Although it is tempting to want to create a magazine-ready home like Chip and Joanna Gaines, the renovations should not be too costly.

Jeff Schatten, assistant professor of business administration in The Williams School of Commerce, Economics and Politics at Washington & Lee University cautions that if you are flipping at the low end of the market, “renovations should be kept to a minimum, with a focus on cosmetics that are cheap, but effective.”

Those who are most experienced in construction and real estate tend to have the most success, partly because they are more likely to make smart choices when it comes to choosing potential flips and turning them into market-ready treasures.

Let those HGTV dreams fly, just make sure you have some sound fundamentals to back up your decisions.

Deidre Woollard is the co-founder of Lion & Orb, a real estate public relations company. Follow her on Twitter @Deidre.

Email Deidre Woollard

Source: click here

Read More



  • Inman Tech Review: JetClosing is fueling mobile adoption of digital title and escrow

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Meet the new urban buyer

    New Yorkers have a knack for spotting trends—and so do luxury real estate agents. When I am asked ...

  • Versatile online marketing solution HighNote brings it all together

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Change agents: How my former career made me a great real estate agent

    Real estate is a specialized field of work, and not every agent takes the most direct path to find t...

  • Zentap addresses all your Facebook needs in one place

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Why industrial interiors are making waves with buyers

    Industrial interior design has long been beloved by luxury homeowners. Modern and open, characterize...

  • The top 5 common anxieties for first-time homebuyers

    In many markets today, homes are being snapped up almost as soon as they’re listed—and a large p...

  • Does Zillow’s app for online tours stack up?

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Roomvu makes effective web video marketing fast and affordable

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • 5 work-from-home interior design trends on the rise

    Interior design is central to luxury real estate—it takes a home from concept to comfort. And desi...

April 2021
Mon Tue Wed Thu Fri Sat Sun

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3


    Loading ... Loading ...