Traditional real estate financing typically involves securing a mortgage loan from a conventional lender that…
As real estate markets continue to shift, staying informed of the latest trends and honing in on the top performing markets are important to maximizing investment capital on fix and flip deals. Understanding key factors such as affordability, market stability, housing demand, and renovation costs play an essential role in identifying the best locations to flip houses, offering investors unique and valuable investment opportunities.
In this article, we’ll explore some of the top markets for potential single-family fix and flips based on favorable conditions, such as affordable property prices, robust demand, and a healthy local economy. Let’s dive in.
1. Atlanta, Georgia
Atlanta, affectionately known as “Hotlanta,” is one of the fastest-growing metro areas in the country, offering a perfect opportunity for fix and flip investments. With 18 Fortune 500 companies and one of the largest airports in the country, Atlanta’s diverse economy makes it more resilient to market downturns. According to ATTOM, the flipping rate in the city increased by an impressive 94.3% in 2022, indicating a thriving market. A substantial 80.7% of flips were purchased with all cash, highlighting the strong financial potential in the area.
The city’s diverse community and the presence of 57 universities attract numerous young professionals and create a favorable rental market. Recently named the best city for starting a career, Atlanta is expected to be one of the top real estate markets this year. Additionally, the city ranks high on the home affordability list, providing investors with ample opportunities within this profitable house flipping market.
2. Virginia Beach, Virginia
Virginia Beach presents another great real estate market for fix and flip opportunities. The city’s steady influx of tourists, military personnel, and young professionals ensures a consistent demand for housing. The tourism industry drives the need for short-term rentals and simpler fix and flip projects, while the presence of the military creates a demand for rental properties and homes for military families. Virginia Beach’s business-friendly environment, supported by the local government’s active encouragement of redevelopment, provides valuable resources and incentives, streamlining processes related to permits, licenses, and inspections.
With an enticing average profit of $91,793 and an average ROI of about 100%, the city offers a lucrative market for flippers. Additionally, the diverse neighborhoods catering to various price ranges ensure accessibility within the market. Beyond its beautiful beaches, Virginia Beach’s wildlife, rich historical sites, and engaging entertainment options make it an alluring location for both investors and potential buyers.
3. Pittsburgh, Pennsylvania
Pittsburgh stands out as a hot real estate market for flipping houses due to its diverse economy in healthcare, technology, education, and finance, offering ample opportunities for substantial ROI. The city fosters a strong sense of community among real estate professionals, providing valuable resources, advice, and partnership prospects. Pittsburgh boasts a high effective gross yield (EGY), further enhancing investor returns. Its booming job market, dynamic cultural scene, and 60 higher education institutions attract renters, resulting in a strong renter’s market with over 50% of residents renting.
With affordable housing averaging around $225,000 and a whopping 63%+ growth in property values over the past five years, the city presents promising opportunities for fix and flip investments, while its landlord-friendly environment adds to its overall appeal.
4. New Orleans, Louisiana
New Orleans is a yet another unique and attractive real estate market. It is renowned for its cultural experiences and vibrant atmosphere, drawing numerous visitors and residents each year. As the most populated city in Louisiana with an average home value of $260,904, it appeals to many real estate investors. In 2022, the ROI for typical home flips increased significantly from 54.1% to 64.6% according to ATTOM.
New Orleans benefits from a diverse economy driven by tourism, the oil and gas industry, and other sectors, ensuring a steady demand for housing, especially for short-term rentals due to its popularity among tourists. The city also sees high demand for rental properties from military, government contractors, and the student population. Limited housing supply in New Orleans helps maintain stable home values, and the substantial availability of older, affordable homes, particularly in areas like Orleans Parish, offers excellent opportunities for house flipping. Overall, the New Orleans real estate market presents a range of attributes that offer promising properties with great returns.
5. Greensboro, North Carolina
Greensboro is as an exciting and up-and-coming real estate market with many appealing factors for investors. The city has been experiencing a housing boom within a competitive, appreciating market, making it an ideal location for real estate investors. One major advantage is the abundance of opportunities for flips under $200,000, catering to tighter budgets and broadening accessibility in the house flipping market. Greensboro boasts a healthy economy with a growing job market and a high quality of life, accompanied by a relatively temperate climate and four distinct seasons, offering recreational opportunities at local lakes and forests.
Additionally, ongoing revitalization efforts further enhance the city’s allure to both residents and investors. The booming arts scene and iconic civil rights landmark add to the diverse cultural amenities, appealing to individuals from all walks of life. Combining economic stability, affordability, revitalization efforts, and cultural attractions, Greensboro creates an ideal environment for fix and flip investments, providing a range of opportunities within a promising real estate market.
6. West Valley City, Utah
West Valley City, though smaller in size, proves to be an attractive real estate market with a combination of inherent features and promising future prospects. With a median house price of $334,358 in June 2023 and an expected 22% long-term value increase within five years, average home prices are projected to reach nearly $400,000 by 2028, presenting an opportune time for substantial ROI.
As the second largest city in Utah, West Valley City boasts a steadily growing population, indicating rising housing demand and increased property values in the future. The city’s high homeownership rate, short turnover time, and low remodeling costs make it an appealing choice for house flippers, with average rehabbing costs around $83,000. Additionally, its proximity to Salt Lake City and recent infrastructure improvements in public transportation further demonstrate its ability to support larger populations. Collectively, these factors position West Valley City as a desirable location that all house flipping investors should consider.
7. Baltimore, Maryland
Baltimore boasts an impressive track record for fix and flip investments, offering multiple features that indicate promising investment returns. It stands out with one of the largest gross flipping profit margins among metro areas, an outstanding 72.9% according to ATTOM. The city experiences over 50% more appreciation compared to other towns in Maryland, providing security for house flippers seeking attractive returns. With a low cost of living and a median home sale price of $205,000, Baltimore appeals to both residents and buyers. Its foreclosure laws create opportunities in the market, with a wealth of discounted foreclosure properties allowing for greater return margins.
The city’s attractiveness is further fueled by the presence of numerous local universities, such as Johns Hopkins and the University of Maryland, Baltimore County, creating a potential student market for rental properties. Ongoing city renewal efforts and increased infrastructural changes contribute to Baltimore’s appeal, enhancing property values and attracting more residents. Moreover, the high job availability in the area supports a thriving real estate market, providing stability and growth potential for investors.
The Bottom Line
Fix and flip markets present investors with attractive opportunities to capitalize on house flipping, however, finding the right location can be one of the biggest factors in reaching potential profit goals. By focusing on markets with favorable conditions like the ones listed above, investors could boost their chances of success in the fix and flip business.
CoreVest Finance is a market leader in fix and flip and rental property loans. The company has helped thousands of investors finance over 140,000 units. Our relationship managers are ready to talk with investors directly on how CoreVest can maximize the value of your fix and flip project or rental property portfolios. Call us today at 844.223.7496 or email or email [email protected] to discuss how CoreVest can help you grow!
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