These are the best cities for "fix and flip" success

by Steve Randall07 Aug 2018

Taking on a low cost home that needs some TLC can be a risky business and as with most things real estate there are big variations between local markets.

But a study by WalletHub.com has identified the cities where investors can have the best chance of profitable success from ‘fix and flip’ deals which showed an average gross profit of $68,143 in 2017.

The analysis considered 27 indicators of market potential, cost and quality of life, across 170 US cities. These included median purchase price, full-home remodeling costs, and the health of each housing market.

Taking top spot is Sioux Falls, SD, followed by Indiana cities Nampa and Boise.

The worst markets for flipping are Bridgeport, CT; and New Jersey’s Newark and Yonkers.

Home flipping market stats
Pittsburgh has the highest average gross return on investment, 145.45%, 24.5 times higher than in Montgomery, Alabama, the city with the lowest at 5.93%.

Mobile, Alabama has the lowest median purchase price, $50,000, which is 14.6 times lower than in San Jose, California, the city with the highest at $730,000.

Memphis, Tennessee, has the highest share of home flips at 12.76%, 9.5 times higher than in Albuquerque, New Mexico, the city with the lowest at 1.35%.

The study also found that Charleston, South Carolina, has the most real-estate agents (per 100,000 residents) which at 184 is 20.4 times more than in Warwick, Rhode Island and Providence, Rhode Island, the cities with the fewest at 9.

Best Cities to Flip Houses

 

Worst Cities to Flip Houses

1

Sioux Falls, SD

 

163

New York, NY

2

Nampa, ID

 

164

Oxnard, CA

3

Boise, ID

 

165

Boston, MA

4

Fort Wayne, IN

 

166

Wilmington, DE

5

Missoula, MT

 

167

New Haven, CT

6

Peoria, AZ

 

168

Oakland, CA

7

Oklahoma City, OK

 

169

San Francisco, CA

8

Fort Smith, AR

 

170

Yonkers, NY

9

Des Moines, IA

 

171

Newark, NJ

10

Tampa, FL

 

172

Bridgeport, CT

 


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