Flipping houses can be successful in many towns and cities, but some are better than others. Before you get your hands dirty, take the time to learn about real estate, construction and how much your initial investment should be. Also familiarize yourself with housing prices in your area and what you can make by flipping them. The good news is that house flipping is a good business to be in right now!
Let’s check out five of the best cities for flipping houses, according to 247wallst.com.
5. New Haven-Milford, CT
The New Haven-Milford metro area has been generous to house flippers, with a return on investment of 89.6%. House flippers in this area purchase properties at 38.1% less than local market prices, and buyers are willing to pay a premium of 20.7%. Part of the reason for this growth is that affluent New York City residents are willing to buy in New Haven and pay the markups.
4. Cincinnati, OH
The benefit to flipping houses in Cincinnati is that home prices are cheaper, which means flippers don’t have to risk as much money. The average home value is $152,100 compared to the national average of $181,200. Maybe residents aren’t willing to pay the high price of New Haven homes, but some basic improvements and updating is enough for Cincinnati home flippers to see a return of 89.7%.
3. Philadelphia, PA
The average house flipper in the Philadelphia metro area is usually able to purchase property at a discount of 44.7%. Home buyers are willing to buy the flipped home at a 5% premium, so flippers are able to make double their investment. It’s believed that part of the reason for success is the pool of wealthy home buyers from NYC that can get more for their money in Philadelphia.
2. New Orleans, LA
Home prices were at their lowest in New Orleans when Hurricane Katrina hit in 2005. When the housing market crashed, it was an additional hit. Even with these setbacks, New Orleans is still ranked as one of the top cities for flipping houses because of the high return on investment, healthy real estate market and other factors. The average gross profit is $74,700, with a return on investment of 99.2%.
1. Pittsburgh, PA
Pittsburgh is the only housing market where flippers can earn double their investment. The average return is a whopping 130%, making Pittsburgh the most profitable house flipping area in the U.S. metro area. Because the median purchase price in the city – $55,000 – is well below the national median average, flippers are likely getting discounts on their properties.
Some house flippers are lucky enough to reside in one of the areas listed above. Others need to be more creative in where they work. Fortunately, house flipping is on the rise again, making this job one that can be traded in for any 9-5 office position.
