House flippers earned a gross profit of $63,500 in the first quarter of 2021, according to WalletHub’s survey of more than 170 U.S. cities across 26 key metrics. The personal finance website released its 2021 list for Best Places To Flip A House ranging from median purchase price to average full home remodeling costs to real estate agents per capita.
People who have seen the HGTV show “Flip or Flop” have probably thought about gutting their house and turning a five or six figure profit. However, the process isn’t as easy as it looks. Demand for purchasing homes is on the decline, according to RealtyTrac, with the homeownership rate down to 65.6% after a high of 69.2%. So, house Flippers should look to invest their money carefully.
The best three cities to flip a house, based on median purchase price and average remodeling costs, are Sioux Falls, SD., Missoula, MT., and Peoria, AZ. The worst three cities to flip a house are Oxnard, CA., Wilmington, DE., and Jersey City, NJ.
Pittsburgh has the highest gross return on investment at 128.12%. That is 9.4 times higher than Raleigh, North Carolina, with the lowest at an average 13.64% gross return on investment..
Flippers that are looking for cheap purchases can head down to Montgomery, Alabama, where the median purchase price is $60,000. That is a stark contrast compared to San Jose, California, the city with the highest at $920,000.
Memphis, Tennessee, is leading the nation in the number of home flips at 11.5% of all homes for sale. That is 6.1 times higher than in Portland, Maine, the city with the lowest at 1.95%.
South Carolina has the most real estate agents per capita, with 247 agents per 10,000 residents. That is 41.2 times more than in Worcester, Massachusetts, the city with the fewest at 6 agents per 10,000 residents.
Flippers looking for cheap remodeling costs can look to Little Rock, Arkansas, where average full home remodeling costs are valued at $75,888. That is five times lower than Atlanta, GA., the city with the highest at $375,734.
Click here to view the full report and your city’s rank, on WalletHub’s website.
