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Where Are The Best House Flipping Locations

A real estate data firm, ATTOM Data Solutions recently reported that house flipping activity ballooned to an 11 year high, this despite record housing prices.  More than 207,000 houses flipped in 2017.  Obviously there’s a lot of planning that goes into securing a profit in flipping houses not the least of which is based in the age old real estate adage, “…location, location, location…”  And then that begs the question doesn’t it … where are the best house flipping locations?where are the best house flipping locations

“The sweet spot for successful home flipping is finding the neighborhoods just emerging as the next hot neighborhoods in a city,” says Daren Blomquist, a senior vice president at ATTOM Data Solutions.  The average profit for flipping a house in 2017 was an astounding $68,100.

Realtor.com® ranked the 200 largest municipalities according to the percentage of home sales that were defined as flips.  What was the basis for determining a house as “flipped”?  Researchers defined a flip as any home that is bought and then resold within a 12 month period of time. For the purposes of geographic diversity, researchers further filtered their study to those metro areas in which the average profit was at least $30,000 and ranked only 2 metros per state.  The results are as follows:

1. Nashville, Tenn.

Ratio of flips to all home sales: 4.1%
Average flip profit: $87,200

2. Fresno, Calif.

Ratio of flips to all home sales: 3.5%
Average flip profit: $53,200

3. Palm Bay, Fla.

Ratio of flips to all home sales: 3.3%
Average flip profit: $71,500

4. North Port, Fla.

Ratio of flips to all home sales: 3.3%
Average flip profit: $85,300

5. Baton Rouge, La.

Ratio of flips to all home sales: 3.2%
Average flip profit: $70,000

6. Chattanooga, Tenn.

Ratio of flips to all home sales: 3.1%
Average flip profit: $65,800

7. Los Angeles

Ratio of flips to all home sales: 3%
Average flip profit: $169,400

8. Lubbock, Texas

Ratio of flips to all home sales: 2.7%
Average flip profit: $46,000

Data source: article by Lance Lambert of Realtor.com®

How can you start identifying candidates?  There are some “tried and true” search strategies that can get you started.  First identify the market you want to target.  For example, let’s say you want to flip a house in Palos Verdes Estates.  Using another old but true adage in real estate, “…buy the least expensive home in the best neighborhood you can afford…” we can identify the four price quadrants for Palos Verdes Estates using some of the research tools I have available on my website

Where Are The Best House Flipping Locations

Where Are The Best House Flipping Locations