In the past few years, fixing and flipping homes in the United States has become a very profitable opportunity for investors. In fact, it does not matter whether you are a sound investor or someone that is just looking at this as a side hustle, fixing and flipping houses can help you with sizable incomes and growth margins.
Just take a look at what the data has to say. According to statistics, a flipped property was able to generate a profit of over $70K per property in 2020. This was a realistic average, which goes to show the kind of potential this market has. However, there is no denying the fact that just like any investment, trends in this industry can change from year to year.
One thing that almost all experts point out is studying market trends to stay relevant and understand the nature of your investment. This can be done by analyzing the best markets and locations that are conducive to this investment industry. In other words, where you live, and the location of the home needs to be in a city, locality, or region where demand is high.
In this resource on fixing and flipping properties, we are going to look at six cities that are perfect in terms of registering high growth margins. However, before we get to the list, let us first look at some important factors that need to be considered when it comes to fixing and flipping houses.
Factors to Consider when Fixing and Flipping Houses in the United States Market
In this section, we are going to list down five factors that play a critical role in determining the success of your flipping projects and investments in the US housing market-
List of 6 Top US Markets for Fix and Flip Real Estate Investments
In the last few years, Pittsburgh’s growing population has been making a beeline for great homes. Real estate investments are picking up yearly, and a booming economy with a younger workforce is to be credited with the same. Data suggests that Pittsburgh offers the highest returns in the US housing market. This should be right on top of your list of flipping investments.
A strong economy does more than just boosts commercial real estate values. As an area experiences business growth, residential growth follows. With the population rising to almost 29 million and the lack of job opportunities in Dallas, residents enjoy low taxes and general cost of living. Multi-family properties are being built and sold to accommodate the growing population of Dallas and many local companies also offer competitive fix and flip loans. Hence, if you are a real estate investor, this is time to invest in Dallas.
The city has been in the news for bearing witness to Hurricane Katrina and experiencing the worst. However, things have changed for the better with both the government and the local community coming forward to build this great city. With a low home price average of less than $200K, many flipping investments have the potential of generating over 100% in terms of ROI.
In the last section, we have already touched upon the Denver market. With more and more tech entrepreneurs and companies trying to explore Colorado and shift base, property prices are rising. Fuelled by VC funds, start-up founders are looking at great homes to display their extravagant and successful lifestyles. This is one of the hottest flipping markets in the USA.
One of the major reasons that is driving growth in this market has been the advent of high-paying professional jobs. Young professionals are eager to invest in real estate and want homes that reflect their newfound success. Another reason driving flipping is the low cost of renovation. The $20K figure is amongst the lowest in the US real estate markets.
This is another up-and-coming housing market that is amid heavy demand. With homeownership rates on the lower sides, this might be a perfect break-in market thanks to its low turnaround times, affordable renovation costs, and a burgeoning population. Experts suggest that West Valley City can be throw up pleasant surprises for investors in 2022.
The Final Takeaway
Real estate investors looking at flipping opportunities need to understand that if they start with a great location, they have already won half the battle. Flipping profitably is not easy. You need to do your research and find out everything from initial purchase costs to renovation charges and turnaround times. If you would like us to assist you in any way on the topic, please feel free to reach out to us in the comments section below.