The best and worst cities to flip homes

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As home prices rise amid the booming real estate market, the opportunist in you may think it’s time to buy, renovate, and sell a home for a net profit. According to a recent WalletHub study, the average American home flip in the first quarter of 2021 made gross profit of $ 63,500, which is not a shabby sum.

But as the saying goes, results can vary, and one of the most important variables is location. For the WalletHub study, 172 major cities (including the 150 largest in the United States and at least two major cities in each state) were compared in terms of metrics across three categories to identify the best and worst cities for a change. House.

The first category, “market potential”, strongly weighed the return on investment and its evolution in 2020 compared to the previous year, before the pandemic. Among other factors, he also compared prices, the share of homes returned in each city, property taxes, and where homes sold for more demand and by how much. The “quality of life” category looked at local schools, crime rates, jobs and unemployment, economic growth and other factors. The last category was “renovation and remodeling costs,” which also vary from location to location. A fair warning: current shortages of materials, such as lumber, could inflate your projected costs.

Sioux Falls, SD, came out on top as the best place to flip a home thanks to low renovation costs and good quality of life. Newark, NJ, came last, with scores in the basement in all three categories. The highest return on investment was in Pittsburgh, although with not particularly high house values ​​and not particularly low renovation costs, flipping a house was not as lucrative as in other cities. For budget-conscious flippers, Mobile, Alabama was found to have the lowest median purchase price and lowest kitchen remodeling costs, placing the city in sixth place overall.


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