Flipping houses can be big business, but not all markets are created equal. In some parts of the country, investors are getting more bang for their buck. In Maryland or Pennsylvania, for example, a fix-and-flip investor can make an average profit of $110,000 on their flipped house, while other states may not offer quite the same return.
So where exactly does your money go further? What are the best states for fix-and-flip investing and what makes them the cream of the crop? Here are the five best states for the fix-and-flip investor.
Texas
The housing market in Texas is on the rise, working its way up the list of the nation’s best housing prices for fix-and-flip investors: the sale of flipped homes in some metro areas rose by over 20% in 2017.
The Dallas and Fort Worth markets are among the most attractive to prospective flippers. Homes in the Dallas area can routinely be flipped for profits exceeding $100,000.
New Jersey
Because of changing federal tax laws, many New Jersey home buyers are targeting specific price ranges for upcoming home purchases. Most buyers are looking to purchase a property under the $725,000 cap on mortgage interest deductions.
Fix-and-flip investors can take advantage of these changes by targeting inexpensive properties that can be upgraded with more luxurious features, giving buyers a quality property under the $725,000 market ceiling. The most popular cities in New Jersey are those with short commute times to major cities like New York and Philadelphia.
Tennessee
At an average of around $260,000, housing prices in Tennessee are some of the lowest in the country, and because Tennessee is full of so many up-and-coming areas, it’s a popular choice for home flippers hoping to make a quick return on investment. The average time to flip in Tennessee is one of the lowest rates in the country at just 147 days from the initial purchase to the time of sale.
Pennsylvania
Like Tennessee, many parts of Pennsylvania are experiencing a dramatic revitalization, which in turn is pushing up home prices. Still, Pennsylvania boasts a lower median housing cost, so there’s room for greater profit with the right flipping strategy. In 2017, when more than 207,000 homes were flipped nationwide, Pennsylvania featured four of the most profitable markets in the country.
Colorado
As more companies choose Colorado for their corporate headquarters, demand for housing is rising rapidly. Denver leads the way in the Colorado fix-and-flip market, with flipped homes in many Denver zip codes returning gross profits well over $100,000.
Ashley Lipman
Content marketing specialist
Ashley is an award-winning writer who discovered her passion in providing creative solutions for building brands like TheUrbanAvenue online. Since her first high school award in Creative Writing, she continues to deliver awesome content through various niches.
