If you've ever thought about getting into home flipping, there are a few things to consider, the first of which is whether you're in the right place to do it.
WalletHub recently compared over 170 U.S. cities in terms of market potential, costs and quality of life to help potential home flippers choose the best market to list their home for sale.
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“Our data sets range from average purchase price, to average home renovation costs, to real estate agents per capita,” the company said.
Several Georgia cities made the list.
Columbus ranked highest at 65th. The city ranked third in market potential with an overall score of 57.20. The city ranked 73rd for renovation and remodeling costs and 165th for quality of life.
Next up is Augusta, ranked 87th with an overall score of 53.58. The city ranked 37th in market potential and 79th in renovation costs. It also ranked 151st in quality of life.
Still, Columbus and Augusta performed better than Atlanta.
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Georgia's capital city came in at 135th with a score of 45.02, making it one of the worst places to resell a home. Atlanta scored highly for quality of life, but came in 52nd for market potential. The cost of renovations and remodeling came in near the bottom at 163rd. The city has one of the highest average remodeling costs overall for homes.
According to FirstBank, there are several pros and cons to flipping a home.
The benefits include the potential for big profits, personal growth, and rewards from home improvements. But there are also risks. These risks include stress, not knowing where to start, and the possibility of losing a lot of money.
Brittany Cousin, an economics professor at Duke University, said that if people decide to flip homes, it's best suited to people “who are prepared to make their work both an art and a science.”
“Flipping a home requires patience and flexibility, with many surprises, delays and reassessments. But it's also a business, and flippers must not only make snap decisions, but also remain aware of the financial implications of their choices,” she told WalletHub.
“Flipping a home is about making it beautiful enough that buyers are willing to pay a higher price, but it's also about making responsible decisions about renovations.”