{"id":138195,"date":"2020-12-29T18:33:57","date_gmt":"2020-12-30T01:33:57","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/top-cities-flip-rent-2020"},"modified":"2024-02-06T15:43:36","modified_gmt":"2024-02-06T22:43:36","slug":"top-cities-flip-rent-2020","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/top-cities-flip-rent-2020","title":{"rendered":"The Top 10 Cities for Flipping and Renting in 2020\u2014Determined by You!"},"content":{"rendered":"<p>When we launched BPInsights in March 2020, we wanted to highlight markets we thought worth investigating\u2014and I think we\u2019ve done a fabulous job of finding unique locations with stellar investing options. Check out our <a href=\"https:\/\/www.biggerpockets.com\/insights\/articles\/best-cash-flow-market-by-state\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: purple;\">favorite cash flow markets<\/a> and the <a href=\"https:\/\/www.biggerpockets.com\/insights\/articles\/markets-invest-50000\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: purple;\">best places to invest $50,000<\/a>. Are you a duplex investor? <a href=\"https:\/\/www.biggerpockets.com\/insights\/articles\/cash-flowing-duplexes\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: purple;\">We\u2019ve got you covered, too<\/a>.<\/p>\n<p>For our end-of-the-year roundup, we want to know what cities <em>you\u2019re<\/em> most interested in. Where are BiggerPockets members investing? And is there a difference between where you\u2019re flipping and where you\u2019re renting?<\/p>\n<p>Turns out there is.<\/p>\n<p>We pulled the stats from <a href=\"https:\/\/www.biggerpockets.com\/investment-calculators\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">BiggerPockets\u2019 calculator<\/a> usage to find your favorite cities to flip and rent. Here are the top 10 for both flipping and renting, according to our users.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/assets2.biggerpockets.com\/uploads\/uploaded_images\/1609265537-image.jpeg\" alt=\"\" title=\"\"><\/p>\n<h2>Houston<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.7%<\/li>\n<li><strong>Average median sales price (Jan-Sept. 2020)<\/strong>: $192,878<\/li>\n<li><strong>Average median rents (Jan-Sept. 2020)<\/strong>: $1,419<\/li>\n<\/ul>\n<p>Once known mainly as an oil town, Houston has become a cultural hotspot with a thriving food scene, an entire Museum District, lots of professional sports teams, and a quickly growing population\u2014<a href=\"https:\/\/www.census.gov\/quickfacts\/houstoncitytexas\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">up 10.7% <\/a>in the past ten years. With all those newcomers, there\u2019s plenty of demand for rentals.<\/p>\n<p>But with steadily rising home values\u2014up 6.6% in just the last year\u2014and a slew of buyers seeking move-in ready homes, Space City is the number one city for flips <em>and<\/em> rentals according to <a href=\"https:\/\/www.biggerpockets.com\/investment-calculators\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">BiggerPockets\u2019 fix and clip calculator<\/a> and our <a href=\"https:\/\/www.biggerpockets.com\/rental-property-calculator\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: purple;\">rental property calculator<\/a>.<\/p>\n<h2>Atlanta<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.6%<\/li>\n<li><strong>Average median sales price<\/strong>: $286,996<\/li>\n<li><strong>Average median rents<\/strong>: $1,629<\/li>\n<\/ul>\n<p>All eyes are on Georgia this year as the longtime red state turns purple. But for flippers, it\u2019s all about Atlanta. The metro has been growing like weeds with an <a href=\"https:\/\/www.census.gov\/quickfacts\/fact\/table\/atlantacitygeorgia\/PST045219\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">18.7% population increase<\/a> over the past decade, thanks in part to its solid and diverse economy.<\/p>\n<p>With a relatively low cost to enter the housing market, many of those new residents want to buy. And like everywhere else this year, they want renovated homes\u2014which, in part, has led to a <a href=\"https:\/\/www.biggerpockets.com\/blog\/determining-market-invest-remotely-dream-investment\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">steep increase<\/a> in home prices over the past year.<\/p>\n<h2>San Antonio<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.7%<\/li>\n<li><strong>Average median sales price<\/strong>: $185,894<\/li>\n<li><strong>Average median rents<\/strong>: $1,198<\/li>\n<\/ul>\n<p>Like nearby Houston, San Antonio also earned itself spots on both the flip and rent lists. The river town, which boasts seven Fortune 1000 companies, has seen a 43% appreciation in real estate over the past ten years, with an 8.3% rise just last year.<\/p>\n<p>Why the boom? Turns out, East Coasters and Californians love the home of The Alamo and are moving in droves. Earlier this year, it was estimated that about <a href=\"https:\/\/www.kens5.com\/article\/news\/community\/who-are-the-66\/273-77bb35bd-5ec9-44a8-b398-029071ca93f3\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">66 people<\/a> move to San Antone every day to take advantage of its low cost of living.<\/p>\n<h2>Dallas<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.6%<\/li>\n<li><strong>Average median sales price<\/strong>: $259,475<\/li>\n<li><strong>Average median rents<\/strong>: $1,466&nbsp;<\/li>\n<\/ul>\n<p>While Dallas doesn\u2019t have the population of Houston or San Antonio, new residents are flocking there like sand flies on sunbathers. <a href=\"https:\/\/www.biggerpockets.com\/blog\/investors-buying-south-metro-area-growing\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">More people are moving <\/a>to the Big D than any other city in the United States.<\/p>\n<p>2020 has been rough on us all, but even throughout COVID-19 the economy remained strong. Home prices rose substantially, too. But there are still plenty of affordable pockets in and around the city that will continue to increase in value and grow, making it a great place to flip.<\/p>\n<h2>Baltimore<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 1.4%<\/li>\n<li><strong>Average median sales price<\/strong>: $115,082<\/li>\n<li><strong>Average median rents<\/strong>: $1,472<\/li>\n<\/ul>\n<p>Charm City is charming both flippers and landlords these days. The city is another to earn spots on both lists. Since last spring, properties have been selling at a super-speed pace with median sales prices reaching record highs and frequent bidding wars.<\/p>\n<p>It may sound odd for a metro that\u2019s been decreasing in population over the past decade. But the low interest rates of 2020 have made <a href=\"https:\/\/www.baltimoresun.com\/business\/real-estate\/bs-pr-bz-baltimore-real-estate-pandemic-boom-20201029-f3l34p5nsfafbahh5sebayvmzq-story.html\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">buying a home cheaper than renting<\/a> in many cases\u2014and many of these new buyers don\u2019t want contractors schlepping around their homes in the midst of a pandemic.<\/p>\n<h2>Indianapolis<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.9%<\/li>\n<li><strong>Average median sales price<\/strong>: $185,231<\/li>\n<li><strong>Average median rents<\/strong>: $1,640<\/li>\n<\/ul>\n<p>Real estate in Indianapolis\u2014home of the world-renowned Indianapolis 500\u2014has been flying off the MLS this year. Many of the <a href=\"https:\/\/www.forbes.com\/sites\/petertaylor\/2020\/12\/03\/what-americas-15-hottest-real-estate-zip-codes-say-about-the-future-of-the-housing-market\/?sh=3b2389ab73d9\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">Millennials<\/a> who had been living in pricey metros like New York and Boston have realized that Indy has many of the same cosmopolitan amenities they\u2019ve become accustomed to at a fraction of the cost.<\/p>\n<p>In October, 65% of the homes sold were off the market in just two weeks, with values rising by 10.5% in just a year. That\u2019s why it\u2019s been dubbed one of the \u201c<a href=\"https:\/\/www.forbes.com\/sites\/andrewdepietro\/2020\/12\/15\/top-housing-markets-to-watch-in-2021\/?sh=6424a5b86c79\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">Top Housing Markets to Watch in 2021<\/a>\u201d\u2014and, according to our users, a great place to rent and flip.<\/p>\n<h2>Phoenix<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.5%<\/li>\n<li><strong>Average median sales price<\/strong>: $291,111<\/li>\n<li><strong>Average median rents<\/strong>: $1,374<\/li>\n<\/ul>\n<p>Remote workers have been flocking to Arizona like seagulls to a picnic since the start of the pandemic, expanding the <em>already<\/em> expanded population of cities like Phoenix. So, again, like other metros that are great for both flippers and renters, those new residents need a place to rent before they buy.<\/p>\n<p>But one difference between Phoenix and other cities on these lists is that the city has been economically hammered by COVID-19. Foreclosure and eviction rates are <a href=\"https:\/\/www.biggerpockets.com\/blog\/best-investment-not-home-market\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">two times the U.S. average<\/a>, particularly in low-income neighborhoods west and south of the city.<\/p>\n<h2>Chicago<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.6%<\/li>\n<li><strong>Average median sales price<\/strong>: $304,167<\/li>\n<li><strong>Average median rents<\/strong>: $1,743&nbsp;<\/li>\n<\/ul>\n<p>Early in the pandemic, there were signs of a mass suburban migration. For Chicago, at least, that hasn\u2019t quite panned out as expected. A recent report from the <a href=\"https:\/\/www.illinoisrealtors.org\/blog\/illinois-home-sales-jump-34-9-percent-in-october-inventory-continues-to-decline\/\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">Illinois Association of Realtors<\/a> reported a 21.9% increase in sales in the city, with prices up 14.5%.<\/p>\n<p>While lots of residents have been leaving their pricey downtown apartments, there are still plenty of buyers and renters who are banking on getting back to all the restaurants, bars, and entertainment in and around the Loop in the post-COVID-19 times.<\/p>\n<h2>Philadelphia<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.9%<\/li>\n<li><strong>Average median sales price<\/strong>: $195,761<\/li>\n<li><strong>Average median rents<\/strong>: $1,615<\/li>\n<\/ul>\n<p>Going into 2020, Philly had already seen a surge in home prices due to an influx of new residents from unaffordable nearby megapolises New York City and Washington D.C. The remote workers of the pandemic super-charged the trend.&nbsp;<\/p>\n<p>Like most of the United States in the times of COVID-19, the City of Brotherly Love has been in the midst of a seller\u2019s market, with not-so-loving bidding wars and low inventory. Yet prices are still <a href=\"https:\/\/www.phillyhomegirls.com\/blog\/real-estate-market-update-philly-and-suburbs\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">expected to increase<\/a> another 8.3% next year, so it\u2019s ideal for flippers or those who want to hold onto properties.<\/p>\n<h2>Austin<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.4%<\/li>\n<li><strong>Average median sales price<\/strong>: $373,300<\/li>\n<li><strong>Average median rents<\/strong>: $1,485<\/li>\n<\/ul>\n<p>The \u201cLive Music Capital of the World\u201d has been growing like gangbusters over recent years. In the past decade, it\u2019s population has ballooned <a href=\"https:\/\/www.census.gov\/quickfacts\/fact\/table\/austincitytexas\/PST045219\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">by more than 22%<\/a> with a slew of tech companies opening up shop\u2014including <a href=\"https:\/\/www.kvue.com\/article\/money\/economy\/boomtown-2040\/oracle-the-latest-silicon-valley-giant-to-move-its-headquarters-to-austin\/269-1139397c-c742-4ab7-875f-31467cd93fdd\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">Oracle<\/a>, the latest to make an announcement.<\/p>\n<p>And with those well-paying jobs, real estate prices have flown off the charts. Home sales have jumped 23.8% year over year and prices increased 19.7% over November 2019. Those substantial leaps have made it less attractive for landlords while alluring flippers who want to get in on the growth.<\/p>\n<h2>Cleveland<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 1.1%<\/li>\n<li><strong>Average median sales price<\/strong>: $88,856<\/li>\n<li><strong>Average median rents<\/strong>: $1,004<\/li>\n<\/ul>\n<p>Cleveland has lost population, industry, and, of course, LeBron\u2014but the sports-obsessed metro has been heating up in terms of real estate. In October 2020, more than 40% of the homes on the market sold within two weeks, earning it a slot on <a href=\"https:\/\/www.forbes.com\/sites\/andrewdepietro\/2020\/12\/15\/top-housing-markets-to-watch-in-2021\/?sh=5cf3cbce6c79\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\"><em>Forbes <\/em>list<\/a> of \u201cTop Housing Markets to Watch in 2021.\u201d&nbsp;<\/p>\n<p>There certainly could be opportunity for flippers, but the higher rent-to-price ratio makes it a top pick for those seeking to grow their rental portfolio.<\/p>\n<h2>Columbus<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 0.7%<\/li>\n<li><strong>Average median sales price<\/strong>: $163,858<\/li>\n<li><strong>Average median rents<\/strong>: $1,155<\/li>\n<\/ul>\n<p>Two-hours south of Cleveland, Columbus\u2019 housing market is also on the up-and-up. More Cowtown-area homes are anticipated to sell this year <a href=\"https:\/\/www.dispatch.com\/story\/business\/2020\/12\/22\/columbus-home-prices-sales-set-hit-record-2020\/4006922001\/\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">than ever before<\/a>\u2014with far higher prices to boot.<\/p>\n<p>There just aren\u2019t enough homes on the market to meet buyer demand, which can make finding a flip deal tough; however, the low price to get in makes it an attractive market for landlords looking to invest long term.<\/p>\n<h2>Memphis<\/h2>\n<ul>\n<li><strong>Rent-to-price<\/strong> <strong>ratio<\/strong>: 1%<\/li>\n<li><strong>Average median sales price<\/strong>: $108,765<\/li>\n<li><strong>Average median rents<\/strong>: $1,041<\/li>\n<\/ul>\n<p>&nbsp;The home of Elvis\u2019 Graceland, the Blues Hall of Fame, and some of the best ribs in the United States has become a magnet for Millennials. A few years ago, real estate analytics firm <a href=\"https:\/\/www.rclco.com\/\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(17, 85, 204);\">RCLCO<\/a> found the city\u2019s population of young(ish) adults grew by nearly 10%. While those folks have reached the home buying age, Memphis\u2014and its extremely attractive home prices\u2014has become a favorite market for out-of-state investors who have been snatching rental homes off the market.<\/p>\n<p>While these Midwestern metros and sunbelt cities don\u2019t necessarily have a ton in common with one another on the surface, all of them\u2014whether they\u2019re highly rated for landlords, flippers or both\u2014boast median home prices far below the national rate. And that means investors can start investing without completely draining the piggy bank.<\/p>\n<p><em>Are you surprised by BiggerPockets members&#8217; favorite cities?<\/em><\/p>\n<p><strong>Tell us below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When we launched BPInsights in March 2020, we wanted to highlight markets we thought worth investigating\u2014and I think we\u2019ve done a fabulous job of finding unique locations with stellar investing [&hellip;]<\/p>\n","protected":false},"author":613105,"featured_media":138196,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5525],"tags":[],"class_list":["post-138195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-flipping-houses"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/138195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613105"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=138195"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/138195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/138196"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=138195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=138195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=138195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}