The Best Cities for House Flippers Right Now!

18 Replies

I was happy to see Phoenix AZ make #9 on the list and my hometown Denver made #10! ;)

Is your city in the top 10?  Do you flip out-of-state? Are you making these kinds of margins?

Realtor.com®’s research team ranked the 100 largest markets by the ratio of flips to all home sales. They defined a flip as any home – single-family, townhome, or condo – that was purchased and resold within a 3- to 12-month time period. (Note: They did not include deals that ended in foreclosure or had a negative profit compared to the original purchase price. Also, they selected no more than two cities per state to feature in its full list available at realtor.com®.)

The following markets topped its list for home flipping meccas:

1. Deltona, Fla.

  • Ratio of flips to all home sales: 4.0%
  • Median flip profit: $45,830
  • Median list price of all homes: $262,000

2. Stockton, Calif.

  • Ratio of flips to all home sales: 3.9%
  • Median flip profit: $71,050
  • Median list price of all homes: $355,000

3. Nashville, Tenn.

  • Ratio of flips to all home sales: 3.8%
  • Median flip profit: $48,500
  • Median list price of all homes: $330,000

4. Tampa, Fla.

  • Ratio of flips to all home sales: 3.6%
  • Median flip profit: $50,500
  • Median list price of all homes: $240,000

5. New Orleans, La.

  • Ratio of flips to all home sales: 3.5%
  • Median flip profit: $78,300
  • Median list price of all homes: $252,000

6. Los Angeles, Calif.

  • Ratio of flips to all home sales: 3.0%
  • Median flip profit: $89,000
  • Median list price of all homes: $675,000

7. Knoxville, Tenn.

  • Ratio of flips to all home sales: 2.8%
  • Median flip profit: $58,450
  • Median list price of all homes: $223,000

8. Providence, RI

Ratio of flips to all home sales: 2.7%

Median flip profit: $76,000

Median list price of all homes: $311,000

9. Phoenix, AZ

Ratio of flips to all home sales: 2.6%

Median price gain: $42,500

Median list price of all homes: $300,000

10. Denver, CO

Ratio of flips to all home sales: 2.5%

Median flip profit: $42,500

Median list price of all homes: $480,000

View the full list as well as more about the study’s methodology used at realtor.com®.

Not sure if those median profits are true. Who really knows or gives out their real profit. I believe you could make more or less, but it also has too many factors to believe stats. Hard money is about 150/day in most LA and SD, but on uber hot, you could close in a few days, while it is true that in other areas where ARVs are low, it might be that their DOM is really high. All I can believe is the ratio of flips to total home sales, and maybe median price, as these are probability statistics and public record.

So a better metric IMO would be to weight the outcome with the % gain in value by the flip. High value markets like LA and Denver have very low margins. Homes are expensive, improvements are extensive and % returns are small. Just another bit of information that confirms most Realtors know nothing about flipping or buy and hold.

It's probably just the difference from sales price 1 to sales price 2. So you had to subtract the actual rehab and the holding cost from that number. I mean, how would they know how much profit a rehabber makes on a flip?

@Matt M. are you flipping in Denver?  

I have a couple of friends who flip there and even when I go back to visit I'm amazed at what rehabbers are doing to the little brick houses in my old 'hood!  Gentrification with ultra contemporary architecture! 

Originally posted by @Bevla Reeves :

@Matt M. are you flipping in Denver?  

Absolutely. It's great if you can FIND a deal. There are too many guys willing to settle making $10k-$20k on a flip; they outbid most everyone else. That's why I was joking about Denver being ranked. There just isn't enough action out here.

I've averaged about $60k on each of the 3 I've done so far this year. My minumum spread to even go after a project is at least $40k, so that's why I've done so few. Buy you know what, I haven't lost money;) 

@Matt M. same thing is happening here in PHX!  I see guys paying way too much for the acquisitions, I know some of them have to be losing money or barely making a profit!

But if they can do it in volume they can make money...got to have your construction crew on salary or be a GC who can cut costs on the repairs!

It's a seller's market here right now and properties in popular areas are very expensive!

Originally posted by @Matt M. :
Originally posted by @Bevla Reeves:

@Matt M. are you flipping in Denver?  

Absolutely. It's great if you can FIND a deal. There are too many guys willing to settle making $10k-$20k on a flip; they outbid most everyone else. That's why I was joking about Denver being ranked. There just isn't enough action out here.

I've averaged about $60k on each of the 3 I've done so far this year. My minumum spread to even go after a project is at least $40k, so that's why I've done so few. Buy you know what, I haven't lost money;) 

 I like your style. There is a prominent rehabber in Knoxville that will openly tell you if he thinks he can make $10k on a house he will buy it. He does a lot of volume this way but I don't see the allure. 

I think shooting for $10k-$20k is extremely risky!  

Especially if you're rehabbing the older homes that hipsters are flocking to if the rehabs are high-design... it's easy to over improve the designs plus, you never know what you're going to find once you open up the walls!! ;))

Originally posted by @Bevla Reeves :

Realtor.com®’s research team ranked the 100 largest markets by the ratio of flips to all home sales. 

I fail to see how the highest amount of competition makes a market the best for a flipper!

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