BLOGS

Most Profitable States for Flipping Houses

Posted On May 22, 2018

House flipping, or the practice of buying a fixer-upper to renovate and sell at a higher price, reached an 11-year high this year. With buyer demand outpacing supply, and housing inventory near all-time lows, house flippers have an opportunity to replenish for-sale inventory by purchasing homes that are less desirable. 

The lower the listing price the less of the budget the house flipper has to tie up in the actual purchase, and the more they can spend on renovations and repairs.  The speed of transaction influences the profitability of the flip, because the faster the home is sold for profit, the sooner the flipper can reinvest in another property.

CNBC compiled data from real estate listing website Zillow and property-data warehouse ATTOM to rank the top 10 states for house flipping.  This data is based on median house listing price, average number of days to flip, and the average gross profit on flipping and average gross return on investment.  Among the 10 featured states, the average flip time is approximately 6 months from purchase to sale. 

 

1. Tennessee

Average house listing price: $268,692

Average time to flip: 147 days

Average profit: $57,600

Average ROI: 132.7 percent

 

2. Pennsylvania

Average house listing price: $224,090

Average time to flip: 199 days

Average profit: $105,190

Average ROI: 162.4 percent

 

3. New Jersey

Average house listing price: $372,916

Average time to flip: 207 days

Average profit: $102,300

Average ROI: 141.6 percent

 

4. Louisiana

Average house listing price: $232,610

Average time to flip: 166 days

Average profit: $71,866

Average ROI: 104.2 percent

 

5. Colorado

Average house listing price: $538,477

Average time to flip: 176 days

Average profit: $74,300

Average ROI: 155.6 percent

 

6. Maryland

Average house listing price: $369,454

Average time to flip: 198 days

Average profit: $109,617

Average ROI: 109.6 percent

 

7. Virginia

Average house listing price: $341,015

Average time to flip: 184 days

Average profit: $91,783

Average ROI: 99.3 percent

 

8. Florida

Average house listing price: $406,803

Average time to flip: 151 days

Average profit: $59,917

Average ROI: 83 percent

 

9. Illinois

Average house listing price: $277,163

Average time to flip: 196 days

Average profit: $77,317

Average ROI: 110 percent

 

10. Kentucky

Average house listing price: $213,848

Average time to flip: 172 days

Average profit: $55,241

Average ROI: 107.8 percent

 

As buyer demand continues to surpass supply, house flipping is a creative way to turn less desirable properties into habitable homes.  Before embarking on a house flip of your own, it’s best to consult a mortgage professional to determine what you can afford and whether or not the profit is worth the work.

 

Sources: CNBC, NPR