Finding the best places to flip houses is absolutely essential when you’re investing your time and money in turning disasters into delight. No matter how immaculately you renovate a property, it won’t do you any good if there isn’t someone who wants to buy it right away.
For that reason, we’ve put together a list of 13 places to invest as a house flipper in 2023. Remember, though, that the ROI for homes can vary within cities depending on the neighborhood or even the street. Doing your due diligence is absolutely essential to ensure that you’re making a smart investment when you buy property to fix up and flip.
Far from the bustling streets of Manhattan, Buffalo remains the second-largest city in New York despite its status as a Rust Belt city. The reported potential ROI for flipping houses in Buffalo comes in at a whopping 130.6%, meaning that you can more than double your money in this market.
Topping our list of best places to flip houses, this is a relatively competitive market. If you’re thinking about investing here, it’s worth noting that cash is king in old Buffalo, with 86% of fix and flip purchases being all-cash transactions.
Way back in 1950, Baltimore was the sixth-largest city in the nation. The population has been declining ever since, leaving plenty of houses that could use some serious TLC. The average return on investment for fix and flips in Baltimore come in at 90.6%.
Some of the highest rate of house flips in the country can be found in Oklahoma City. A little under 9% of the houses sold in the city recently were bought with this purpose in mind.
The average investor flipping houses in this city saw a nearly 128% return on investment during 2021’s third quarter.
According to the numbers, there isn’t quite as much competition in Honolulu when it comes to fix and flip investors. In the third quarter of 2021, just 0.8% of home sales in the capital city were made to house flippers.
It’s worth noting, though, that this is a much more expensive market than some of the others on our list. Don’t expect to show up with a hundred grand and cash, as you’ll likely leave empty-handed. The median sales price in Honolulu during this period was a little under $590,000.
This is not a market to mess with for the weak of heart. San Jose, California, is the second most expensive area to live in the country, and the real estate values reflect that.
The median home price in San Jose is triple the national average, coming in at a cool $1.3 million. If you have a big chunk of change to invest and you’re looking for the best possible profit, though, you might check out this playground for Silicon Valley’s wealthy.
Are you wondering how you’re going to fund your next house flip? Learn about fix and flip funding here.
Located in Salt Lake County and just outside of Salt Lake City, West Valley City is the second-largest city in the state of Utah.
We’ve included this western city in one of the best places to flip houses because of its high homeownership rate, short turnover time, and low costs of remodeling. The average house flipper in Utah spent roughly $83,000 on their remodeling job.
If you’ve been paying attention to the US real estate market recently, you’ve likely heard about the housing boom in North Carolina. Greensboro is a reasonable place to consider if you’re thinking about flipping a house with an investment of less than $200,000.
This real estate market is growing fast due to the healthy economy there and the quality of life the area offers.
When you think about real estate investment opportunities in the US, New Orleans might not be the first thing that comes to mind. However, there are opportunities here for those who are looking to make a pretty solid ROI.
New Orleans is the most populated city in Louisiana, a state that has an average ROI of 104.2% for house flips. This might be a reasonable option for you if you’re looking to invest under $200,000, as the median home value in the state is about $182,000.
It might not always be sunny in Pittsburgh, but you might not mind the cloudy days when you learn about your potential ROI in this Pennsylvania city. The flipping houses’ return on investment averages at 162.4%, and the minimum amount required for remodeling comes in at about $20k.
While Philadelphia might be your first choice when you think of investing in PA, you might want to give Pittsburgh another look. With less expensive housing stock and a growing market, this is one of our choices for best places to flip houses and might be a smart place to grow your money.
If you’re looking for a stable and predictable market where you can buy property to fix and flip, consider the Virginia Beach area. The average profit for a flipper in VA is $91,793, and the average ROI is just about 100%.
Are you interested in flipping houses in California? If so, San Diego might be one of the best markets to do so. However, it likely comes as no surprise to you that California is an expensive place to do just about anything, and flipping a property in California is no exception.
You can expect that you will need at least $50,000 for remodeling in California, and the cost of housing is quite high in hot markets. As the state with the 2nd highest median sales price in the nation, California is a place where you have to invest quite a bit to play the game. That being said, San Diego is such a sizzling market that you can have quite a bit of certainty in your investment plans so long as all the numbers add up.
Between 2010 and 2020, Colorado added almost a million new residents. This means that their percentage of population growth was topped by only a handful of states, those being Nevada, Texas, Utah, and Idaho.
The appeal of Colorado is fairly easy to understand. With lots of new job opportunities due to the influx of tech companies in the state, there are plenty of people who have moved to the state for economic reasons. On top of that, though, it’s hard to complain about the more than 300 days of sunshine, the incredible outdoor opportunities, and the cultural focus on health and fitness.
While the cost of remodeling can be a bit steep in Colorado, this market is hot enough that you can expect the sale to move pretty quickly if all goes according to plan. With a high average ROI of 109%, this isn’t an unreasonable place to consider investing in the real estate market.
It’s easy for Memphis to get overshadowed by Nashville, but astute investors will notice that there is a potential for profit in this southern city. The cost of remodeling is very inexpensive compared to other cities, as you only need a minimum of $16,000 in order to renovate here.
Houses sell fast in Memphis, too. On top of that, the average ROI comes in at 132.7%, which is certainly nothing to scoff at.
Being a house flipper is a method of real estate investing that offers high potential rewards at the cost of being high risk. That being said, you can reduce your risk by diligently researching the markets where you want to invest. Depending on the property you buy, the likelihood that you will get a good ROI can range from being practically a sure thing to being basically a lottery ticket.
One of the things that can stand in the way of a real estate investor and their next flip is funding. That’s where we come in. Merchants Mortgage is a private lender that specifically provides lending to investors involved in fix and flip projects, www.ground up construction, rental properties, and more.
If you’re looking for the cash to start your next fix and flip job, contact us to learn more
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