Welcome to Bob Villa's Guide to Flip Your Home. In this series, we'll show you the best places to flip your home, important steps to take when choosing a property, must-make upgrades and repairs, and unexpected ways to cut costs to get the most profit from your home flip. Here, you'll find fresh insights, Bob's proven advice, hand-picked shopping guides, and tips on the right professionals to help you get your flip across the finish line.
The idea of flipping a home for a lucrative profit is appealing to many, but it's worth researching the market before doing so. Some areas are better suited to home flipping than others. The general rule for successful flipping is to buy an inexpensive home that needs repairs in a location where the local economy is strong, the population is growing, the real estate market is stable, and there is demand for housing. Other important considerations include the median household income, the current cost of renovations, and homeownership rates.
Many communities offer good opportunities for entrepreneurs who want to buy distressed homes, fix them up, and sell them at a profit. But things can change in an instant, so don't quit your day job until you've seen repeated success. Right now, the following 10 places are among the best cities for house flipping, and someone could make a tidy profit.
Related: What is ROI? Return on Investment Explained
1. Scranton-Wilkes-Barre-Hazleton, Pennsylvania
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As long as investors adhere to proper home resale practices, it should be easy to make a profit in the Scranton, PA area. According to financial and investment experts The Motley Fool, the home resale market in this upstate area is red hot! In the first quarter of 2022, resellers realized a 115% return on investment (ROI) when selling a resale home, making Scranton and the surrounding metropolitan area a top pick for home resale.
2. Kingsport-Bristol, Tennessee-Virginia
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Located on the border of northeast Tennessee and southwest Virginia, Kingsport and Bristol are thriving communities that offer home flippers an average ROI of 114 percent, according to The Fool. Home flippers can find plenty of postmodern and historic homes in need of repair here, which they can fix up and sell for a handsome profit. With an ROI like that, lenders are likely interested in financing a property that's fixed up and flipped.
Related: The 15 Cheapest Places to Buy a House in America
3. Reading, Pennsylvania
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The state's fourth largest city, Reading, Pennsylvania, offers its residents a variety of arts and educational opportunities. Conveniently located on the edge of Nolde Forest with its pristine recreational trails and streams, Reading is currently a hot spot for home resales. The average resale home has an astounding return on investment of 108 percent. Reading is a great place to buy, renovate and resell property.
4. Pittsburgh, Pennsylvania
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Pennsylvania ranks highly on the list of best cities for home flipping. Investors can realize an average ROI of 105 percent by flipping a home here. Pittsburgh is home to the Carnegie Museum of Natural History and architecturally stunning bridges adorn the city. With a low cost of living, great schools, and a growing population, Pittsburgh has all the ingredients for a great home flipping opportunity.
Related: 10 Reasons to Buy an “Ugly” House
5. Seattle, Washington
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Boasting above-average incomes, no local income taxes, and an enviably low unemployment rate, Seattle, Washington is an attractive place to live. According to Fortune Builders, this popular western community is also a great location for home flippers. The real estate market is booming, and the only drawback may be finding a property in need of repairs that's perfect for flipping. But if you can, you can make a handsome profit.
6. Phoenix, Arizona
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In the Phoenix, Arizona housing market, with the average home asking price exceeding $480,000, you're likely to shell out more for a property in need of repairs than in other areas. Still, with a growing population and very low unemployment rate, Fortune Builders rates the area as a low-risk area for real estate investors. Phoenix has long been known as a desert oasis, and its laid-back Southwestern lifestyle draws residents from all over the country.
Related: 10 Signs That Your Home Needs Repairs Could Be a Money Suck
7. Charlotte, North Carolina
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For eagle-eyed investors, Charlotte, North Carolina, is currently a top location for home flipping, and not just for textbook employment and economic reasons: Charlotte boasts a stable economy, but Fortune Builders says flippers also have a good chance of selling at a profit because other investors in the city are holding on to and renting out their homes after they buy. That opens up a market for flippers with a ready pool of willing buyers.
8. Tampa, Florida
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The real estate market in Tampa, Florida is currently booming, with the average home selling in just seven days. This, combined with a growing population and low unemployment rate, makes this Bay Coast city a lucrative location for home flipping. However, as with any top real estate site, investors must choose the right home and follow sensible home flipping policies.
Related: 9 things they never talk about on home improvement shows
9. San Antonio, Texas
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According to real estate guru Zillow, Sunbelt communities stand out as some of the best cities for home flipping, including San Antonio, Texas. Mid-sized metro areas like San Antonio have benefited from an influx of buyers who relocated from larger cities during the pandemic and stayed put because they could work remotely. As a result, the housing market has soared, and home flippers are well positioned to make a profit by flipping the right homes.
10. Detroit, Michigan
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The Motor City has been through economic hardship for the past two decades, but that's led to exciting developments. Storage Cafe says the city has a ton of properties in need of repairs. Home flippers looking to get early exposure in the community might want to consider Detroit, where the job market is steadily expanding. With 22 percent of homes on the market in need of repairs, flippers have plenty of options.