5 Best Places & Cities To Flip Houses In 2024Dec 14, 2023
The potential to turn a profit exists across various markets and housing cycles. However, seasoned investors understand that while opportunities are all around them, strategic choices can significantly enhance their success. One of the critical factors that can tilt the odds in their favor is selecting the best locations to invest their time, effort, and resources.
This article is designed to shed light on the top five places that are set to be some of the best cities for house flipping in 2024. By exploring the best places to flip houses, we aim to equip investors with all of the knowledge they need to identify opportunities that align with their investment goals, including:
- The 5 Best Places To Flip Houses
- How We Chose The Best Cities To Flip Houses
- Best Cities To Flip Houses: Frequently Asked Questions (FAQ)
- Final Thoughts On The Best Places To Flip Houses
*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step). Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house from start to finish as a beginner!
Together, Alex & Stan have completed over 1,000+ house flips. What you learn in this video will give you the confidence and guidance to successfully complete your fix-and-flip project!
Top 5 Best Places To Flip Houses In The US
House flipping can be easier and more rewarding in places conducive to such endeavors. These locations facilitate the deal-making process and offer a more supportive environment for real estate entrepreneurs:
- Fayetteville, NC
- Jacksonville, FL
- Philadelphia, PA
- Chicago, IL
- Cleveland, OH
5. Fayetteville, NC
Fayetteville, North Carolina stands out as one of the best places to flip houses in 2024, and the statistics reflect its potential. With a median home value of $200,361, it offers affordable housing opportunities, particularly when compared to its neighbor to the north, Raleigh. This affordability has attracted the attention of individuals seeking an escape from the higher home prices prevalent in Raleigh's real estate market.
The growing demand has translated to homes lasting fewer days on the market. At 43, the median days on market indicator is quick and highlights demand that will help local investors; this indicates a favorable environment for house flippers to efficiently buy, renovate, and resell homes, maximizing their profits in a relatively short time frame.
Fayetteville's unemployment rate of 5.0% is relatively high, which has resulted in a high foreclosure rate. At 0.30%, the city’s foreclosure rate is one of the highest in the country among qualifying cities. The foreclosure rate should provide investors ample opportunities to capitalize on the demand from cities like Raliegh.
With its affordability, demand, and resilient economy, Fayetteville, North Carolina emerges as a top contender for the best place to flip houses in 2024. Its favorable market conditions, evidenced by relatively short days on the market and a consistent flow of opportunities, make it a location worth considering for investors seeking lucrative house-flipping ventures.
- Median Home Value: $200,361
- Median Days On Market: 43
- Median Household Income: $48,923
- Active Listings: 984
- Unemployment Rate: 0%
- Foreclosure Rate: 30%
4. Jacksonville, FL
Jacksonville, Florida is looking more and more like one of the best places to flip houses in 2024. With a median home value of $295,177, the city offers a diverse range of properties at competitive prices, making it an attractive market for investors looking to capitalize on favorable pricing.
The number of days homes spend on the market, which is around 44, underscores the city's robust real estate demand and active turnover. This short time frame suggests that properties are being sold fast, providing investors with the potential for rapid investment returns.
Jacksonville's median household income of $58,263 contributes to its allure for house flippers. This income level, combined with a relatively low unemployment rate of 3.0%, reflects a stable economic environment that can drive demand for real estate transactions, increasing the likelihood of successfully selling renovated properties.
One standout factor is Jacksonville's foreclosure rate of 0.26%, which was notably high in the first half of the year among qualifying cities. This prevalence of foreclosures can provide investors with an abundance of opportunities to secure properties below market value. With many potential deals to acquire, investors can strategically leverage this trend to maximize their profits.
- Median Home Value: $295,177
- Median Days On Market: 44
- Median Household Income: $58,263
- Active Listings: 4,827
- Unemployment Rate: 0%
- Foreclosure Rate: 26%
3. Philadelphia, PA
Philadelphia is emerging as one of the best places to flip houses. The city's median home value of $221,032 presents an attractive entry point for investors.
A median days-on-market figure of 45 underlines the city's brisk property turnover, indicating robust demand and a proactive real estate market. This fast-paced environment can allow house flippers to quickly acquire, renovate, and resell properties, optimizing their investment cycles.
One of Philadelphia's most intriguing indicators is its foreclosure rate of 0.25%, which is notably high. This elevated foreclosure rate implies a significant number of distressed homeowners, increasing the likelihood of securing deals from motivated sellers. The abundance of such opportunities can give investors a competitive edge, enabling them to acquire properties at prices below market value.
Furthermore, with an active listing count of 8,348, the city is experiencing a demand-supply imbalance. This shortage of listings can lead to bidding wars among potential buyers, allowing investors to capitalize on increased profit margins.
- Median Home Value: $221,032
- Median Days On Market: 45
- Median Household Income: $52,649
- Active Listings: 8,348
- Unemployment Rate: 6%
- Foreclosure Rate: 25%
2. Chicago, IL
Chicago is one of the best cities to flip houses. Supported by compelling data that aligns with factors conducive to successful investments, Chicago’s allure is more than defensible.
With a median home value of $291,186, Chicago offers a broad spectrum of real estate options, catering to varying budgets and buyer preferences, which can significantly enhance resale potential.
With homes lasting 36 days on the market, inventory is flying off the shelves, which suggests demand is intact. Subsequently, The Windy City only has about 13,966 active listings, which isn’t enough to meet said demand. The supply and demand indicators lean heavily in favor of local investors, suggesting flippers should be able to flip homes faster and for more money.
Moreover, Chicago's foreclosure rate of 0.28 underscores its potential for successful house flipping. A notable foreclosure rate implies many distressed homeowners, making it more likely for investors to secure properties at below-market values, thus boosting potential profit margins.
- Median Home Value: $291,186
- Median Days On Market: 36
- Median Household Income: $65,781
- Active Listings: 13,966
- Unemployment Rate: 3%
- Foreclosure Rate: 28
Read Also: How To Flip Houses In Illinois: Step By Step
1. Cleveland, OH
Cleveland's growing reputation as a hub for healthcare and research industries has spurred demand for housing. The influx of professionals and students attracted by these sectors contributes to a sustained need for housing, further solidifying Cleveland's position as a prime destination for profitable house-flipping endeavors.
The increased demand has dramatically outpaced the 2,490 active listings in Cleveland, making real estate a bit of a commodity. As a result, homes are only lasting on the market for about 57 days. These indicators should give investors peace of mind that their projects will see plenty of demand.
If that wasn’t enough, however, Cleveland had the highest foreclosure rate in the first half of this year. The heightened presence of distressed properties in the market provides investors with the potential to acquire homes at reduced prices, thereby enhancing profit margins.
- Median Home Value: $104,666
- Median Days On Market: 57
- Median Household Income: $33,678
- Active Listings: 2,490
- Unemployment Rate: 4%
- Foreclosure Rate: 33%
Read Also: How To Flip Houses In Ohio: Step By Step
How We Chose The Best Cities To Flip Houses
In identifying the best places to flip houses, we meticulously analyzed vital data points that provide valuable insights into real estate investing. Our criteria centered around six crucial factors: median home value, median days on the market, median household income, active listings, unemployment rate, and foreclosure rate.
Affordability, as gauged by Zillow’s median home value, played a pivotal role in our assessment. An affordable housing market often indicates room for potential profit margins, as lower entry costs attract a wider range of potential buyers. Ultimately, demand may lead to bidding wars and increase profit potential for investors who price their properties reasonably.
The number of days homes spend on the market provides crucial clues about demand dynamics. Fewer days imply higher demand, which is favorable for house flippers looking to resell properties swiftly and capitalize on the active interest.
Median household income and unemployment rates offered insight into housing activity and potential demand. A higher median household income and lower unemployment suggest a healthier economic environment, fostering greater home-buying capacity and indicating a strong need for flipped homes.
Active listings offered a glimpse into the current supply. Inventory levels in all the markets listed above are low, suggesting demand significantly outpaced supply in all the best places to flip houses. As a result, investors who can find and acquire deals in these cities should have an easier time selling their finished products.
The foreclosure rate served as a critical indicator of potential opportunities. A higher foreclosure rate indicates more distressed properties available, which aligns with investors' objectives of acquiring properties below market value.
Combining these factors, we aimed to provide a comprehensive perspective on the cities that balance affordability, demand, economic stability, and investment potential. This methodology enabled us to compile a list of the best places to flip houses.
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Best Places To Flip Houses: Frequently Asked Questions (FAQ)
When it comes to investing in real estate, knowledge truly is power. The more investors understand a specific market, the more confidently and successfully they can navigate it. One of the strategies for gaining valuable insights is asking the right questions; this is especially true when considering the best places to flip houses.
The following section will explore the most common questions when considering the best places to flip houses. By exploring these inquiries, investors will be better equipped to assess potential markets, make prudent decisions, and embark on successful house-flipping ventures.
What Are The Best States To Flip Properties In?
Identifying the best states to flip properties depends on various factors, including an investor's specific circumstances and the opportunities available to them. However, some states have consistently shown a favorable environment for house flipping due to market conditions, property prices, and demand for real estate.
In particular, Louisiana, Michigan, Alabama, Delaware, and Ohio are some of the best states to flip houses in. These states offer affordable property prices, the potential for high returns on investment, and a conducive market for property flipping. While local markets within these states can vary, the overall trends suggest a promising landscape for house flipping.
The best states for flipping properties can change over time based on economic conditions, real estate trends, and other factors. Investors should conduct thorough research and analysis before diving into any real estate market. Ultimately, the success of house flipping hinges on a comprehensive understanding of the local market dynamics and a strategic approach that aligns with individual goals and risk tolerance.
Is House Flipping Still Profitable In 2024?
House flipping remains a profitable venture. According to the latest ATTOM Data Solutions Home Flipping Report, the average gross profit on home flipping transactions reached an impressive $56,000 during the year's first quarter. Profits translated into a substantial 22.5% return on investment (ROI) compared to the original list price of the properties. These statistics reflect the potential for lucrative gains that house flipping can offer.
It is important to note that these profits are not guaranteed. The real estate market can be unpredictable, and success in house flipping requires careful planning, strategic execution, and an understanding of the local dynamics of the market. Investors should adhere to proven strategies and adopt a systematic approach to enhance the likelihood of a profitable flip.
What Is The 70% Rule In House Flipping?
The 70% rule is a fundamental guideline in house flipping that helps investors determine how much they can spend on a fixer-upper while maintaining healthy profit margins. This rule suggests that investors should not pay more than 70% of a house's after-repair value (ARV) minus the estimated repair costs. By adhering to this rule, investors aim to secure properties that leave room for potential profit after factoring in renovation expenses.
The primary purpose of the 70% rule is to calculate the maximum allowable offer (MAO) that investors should make on a property. It ensures enough cushion to cover unexpected costs and provide a buffer for a profitable resale. By sticking to the 70% threshold, investors safeguard against overpaying for properties that might erode potential returns.
Applying the 70% rule becomes even more critical when considering the best places to flip houses. This rule safeguards against inflated purchase prices in competitive and potentially higher-cost markets. Utilizing the 70% rule in these prime locations helps investors maintain attractive profit margins and increases their chances of success in the competitive world of house flipping.
Final Thoughts On The Best Places To Flip Houses
Finding the best places to flip houses can significantly impact investors’ bottom line and overall industry experience. Aspiring home flippers aiming for better profits and smoother transactions would do well to focus on places that offer the most conducive environments for flipping homes, like those listed above. Investors can capitalize on today's best opportunities by directing their attention to these prime locations.
Are you ready to take the first step into real estate investing? Don't go it alone! Contact Real Estate Skills today and let our team of experts guide you on your journey to becoming a successful real estate investor. Whether you're a seasoned pro or just starting, we offer personalized strategies and support to help you achieve your goals.