What factors make a location ideal for house-flipping, and others potentially less profitable? According to a recent study by WalletHub, 2018's Best Places to Flip Houses, it all comes down to market potential, renovation and remodeling costs, and quality of life in the specific city.
So, before you start on that next flip, consider the following rankings, which compares 170 U.S. cities across 27 indicators, taking into account the median purchase price of a home and housing market-related health indices.
Source: WalletHub
Here are the top 20 most profitable places to flip a home, according to combined total scores:
- Sioux Falls, S.D. – 73.10
- Nampa, Idaho – 70.46
- Boise, Idaho – 68.89
- Fort Wayne, Ind. – 68.07
- Missoula, Mont. – 67.50
- Peoria, Ariz. – 66.83
- Oklahoma City, Okla. – 66.52
- Fort Smith, Ariz. – 66.11
- Des Moines, Iowa – 65.81
- Tampa, Fla. – 65.73
- Knoxville, Tenn. – 65.54
- Las Cruces, N.M. – 65.40
- Greensboro, N.C. – 65.38
- Rapid City, S.D. – 65.12
- Pembroke Pines, Fla. – 64.74
- Orlando, Fla. – 64.34
- Chandler, Ariz. – 64.22
- Colorado Springs, Colo. –63.87
- Nashville, Tenn. – 63.95
- Columbia, S.C. – 63.87
These cities, however, differ widely when comparing each ranking separately. For example, the top cities when analyzing only the Highest Average Gross Return on Investment indicator are Pittsburgh and Philadelphia, Pa., as well as Cleveland, Ohio, and Baton Rouge, La. At the bottom? San Jose, Calif., and Montgomery Ala., as well as Lubbok, Austin and Amarillo, Texas.
Meanwhile, Memphis, Tenn., and Fresno, Calif., as well as Las Vegas, Henderson and North Las Vegas, Nev., all ranked at the top for Highest Percentage of Home Flips. Dallas, Texas, and Charleston, S.C., secured the top spots for the Highest Housing Market Health Index and Most Real Estate Agents per Capita categories, respectively.
To read about WalletHub's methodology and the entire report, please visit www.wallethub.com.
Nancy M. Alexander - Stone Harbor and Avalon NJ Real Estate NancyAlexander.com
