{"id":170443,"date":"2024-04-12T10:10:19","date_gmt":"2024-04-12T16:10:19","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=170443"},"modified":"2024-06-19T03:09:43","modified_gmt":"2024-06-19T09:09:43","slug":"great-fixer-upper-markets-for-investors-in-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/great-fixer-upper-markets-for-investors-in-2024","title":{"rendered":"These 10 Markets Are Great Places to Find Fixer-Upper Properties\u2014Here&#8217;s What You Need to Know"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC8010742113\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">With home prices and interest rates still at record highs and inventory squeezed, homebuyers and real estate investors may be&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/turnkey-vs-fixer-upper\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">better off purchasing a fixer-uppe<\/span><\/a><span data-preserver-spaces=\"true\">r in some cities.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">At least that\u2019s according to a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.storagecafe.com\/blog\/best-cities-to-buy-a-fixer-upper\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">report from StorageCafe<\/span><\/a><span data-preserver-spaces=\"true\">, which found that fixer-uppers cost an average of 29% less than homes that are ready to move in. And in 20 of the largest 50 cities, they can cost 50% less than a regular home.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And it seems fixing up a home is becoming more popular. While a fixer-upper might be daunting, as it requires extra investment and know-how, more than half of potential homeowners would consider buying a home that needs remodeling, according to a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/news.remax.com\/press-release\/nearly-80-of-prospective-homebuyers-willing-to-adjust-their-homebuying-plans-getting-creative-to-achieve-homeownership-in-2024\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">RE\/MAX survey<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">\u201cMore and more millennials are looking to fix up a home to make it their own because they are not finding many homes available or [have] the ability to compete for the home,\u201d Jason Gelios, a Realtor in Michigan, told StorageCafe.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Best U.S. Cities to Buy a Fixer-Upper<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">To find the best places to buy a fixer-upper, StorageCafe worked with the real estate search portal Point2 to analyze over 70,000 listings in the 50 most populous U.S. cities. They then calculated the difference in asking prices for homes that had characteristics of being a fixer-upper, such as \u201cas-is\u201d and \u201cTLC,\u201d and regular listings. StorageCafe then compiled a list based on savings as well as potential inventory in a specific location.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Overall, Los Angeles is one of the best cities for renovators, despite its hefty price tag, StorageCafe found. While the median asking price for a turnkey home is $1.9 million, a fixer-upper is \u201conly\u201d $1 million. And with 26% of homes for sale representing fixer-uppers, house flippers have plenty of option to choose from. Still, remodeling will still cost on average an extra $155,000, the analysis found.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Other cities in California, such as Long Beach and Fresno, are also appealing for house flippers. While it noted that fixer-uppers tend to be smaller than turnkey homes, the savings and amount of inventory in the area could make it appealing to real estate investors.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table><thead><tr><th><strong>Top Cities to Buy a Fixer-Upper<\/strong><\/th><th><strong>Fixer-Upper Inventory<\/strong><\/th><th><strong>Turnkey Home Median Asking Price<\/strong><\/th><th><strong>Fixer-Upper Median Asking Price<\/strong><\/th><th><strong>Potential Savings<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Los Angeles<\/td><td>26%<\/td><td>$1,995,000<\/td><td>$1,050,000<\/td><td>$945,000<\/td><\/tr><tr><td>Chicago<\/td><td>19%<\/td><td>$424,000<\/td><td>$235,000<\/td><td>$189,001<\/td><\/tr><tr><td>Long Beach, California<\/td><td>20%<\/td><td>$972,000<\/td><td>$837,499<\/td><td>$134,501<\/td><\/tr><tr><td>Kansas City, Missouri<\/td><td>13%<\/td><td>$399,900<\/td><td>$170,000<\/td><td>$229,900<\/td><\/tr><tr><td>Minneapolis<\/td><td>20%<\/td><td>$330,000<\/td><td>$204,950<\/td><td>$125,050<\/td><\/tr><tr><td>Dallas<\/td><td>12%<\/td><td>$500,000<\/td><td>$283,000<\/td><td>$217,000<\/td><\/tr><tr><td>Fresno, California<\/td><td>13%<\/td><td>$452,050<\/td><td>$303,500<\/td><td>$148,550<\/td><\/tr><tr><td>Baltimore<\/td><td>26%<\/td><td>$237,450<\/td><td>$135,000<\/td><td>$102,450<\/td><\/tr><tr><td>Louisville, Kentucky<\/td><td>13%<\/td><td>$319,950<\/td><td>$185,000<\/td><td>$134,950<\/td><\/tr><tr><td>Philadelphia<\/td><td>28%<\/td><td>$277,900<\/td><td>$181,500<\/td><td>$96,400<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">The report also found that the Midwest is another place with potential for fixer-uppers at a fraction of the price of homes in California.<\/span><\/p>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/chicago-real-estate-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Chicago<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;came in second place, with 19% of local listings in need of renovation and potential savings of, on average, $190,000. Home improvement loans are also lower than in other major urban areas, at around $75,000.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Meanwhile, Minneapolis also made the top 10, with fixer-uppers in 20% of active listings and an average cost of just $65,000 to remodel.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Southern cities also made the cut, with&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/dallas-real-estate-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Dallas<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;offering a bargain of nearly 50% less than the average home. Even with home improvements averaging $105,000, it\u2019s still cheaper than buying a recently renovated home.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Surprisingly, the report found that not all fixer-uppers are cheaper than other homes. In Austin, Texas, buying a fixer-upper could actually cost $259,100 more than a ready-to-move-in home. The same is true for San Jose and San Diego, as well as New York City.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to StorageCafe, the increase in price in these regions is likely due to location, as many fixer-uppers in these cities tend to have more living space than newer homes or are located in highly sought-after areas.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bottom Line for Real Estate Investors<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">With home prices still relatively high, real estate investors who are home improvement savvy and OK with not having a return on investment for a few months could stand to make a pretty penny by investing in a fixer-upper.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even considering the price of renovating, in many major cities, it may make more financial sense to buy a fixer-upper and renovate it. Not only can you rent it for more money if it\u2019s recently renovated, but you may also be able to turn around and sell it for double the price.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Still, buying a fixer-upper is a lot of work, as it can come with many unexpected costs and complications. And while interest rates and prices are still relatively high, the market could change by the time you\u2019re done renovating and ready to put the property back up for sale.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_24d68497ef49f159badd23d3070880f7\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_0e8002153a5d2c5a4743b6e7ce29ed3d\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_f3363816dfbf2611a20a48f86ee376e0 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/great-fixer-upper-markets-for-investors-in-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/great-fixer-upper-markets-for-investors-in-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>With home prices and interest rates still at record highs and inventory squeezed, homebuyers and real estate investors may be&nbsp;better off purchasing a fixer-upper in some cities.&nbsp; At least that\u2019s [&hellip;]<\/p>\n","protected":false},"author":613681,"featured_media":170448,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364,7119],"tags":[],"class_list":["post-170443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-markets","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170443","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\/613681"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=170443"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/170448"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=170443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=170443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=170443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}