A new report has revealed cities with the largest number of distressed houses, and the most potential for profit
A new report has revealed cities with the largest number of distressed houses, and the most potential for profit.
The report from RealtyTrac shows that Detroit, Michigan; Chicago, Illinois; Cleveland, Ohio; St. Louis, Missouri; and Cincinnati, Ohio are the best cities to buy and flip a home.
The study looked at the number of homes valued under $US 100,000 and built before 1960, strong indicators that the home could be flipped, or made a profit on, according to spokesperson, Daren Blomquist.
Detroit had by far the highest concentration of distressed homes; 3,777 properties valued at an average of just US$ 41,053, the report showed.
In all of top five cities combined, there were nearly 9,000 homes that met those criteria. All these are good prospects for fixing-up, Blomquist said.
As prices continue to rise, borrowers have gained more confidence coming back to the market, he said. As higher quality inventory remains sparse and builders avoid areas heavily concentrated by distressed properties, these will be hot-spots for potential house flips, Blomquist said.