When it comes to big flip potential, there are dozens of cities to choose from, especially if you’ve got the funds to buy the homes that need a lot of TLC. A company called Smart Asset recently released a study of the 25 richest counties in America, all of which have big flip potential for savvy real estate investors.
In order to determine their list, Smart Asset analyzed Internal Revenue Service (IRS) data on 3,151 counties by evaluating the total income and the total number of returns with income. They then took that data and “divided total income by the total number of returns with income, yielding the average income per return.” This led to data for the 25 richest counties in the United States.
While counties all over the United States made the list (you can see the full list here), there were five counties in Virginia that fell in various spots on the list.
Coming in at number eight is Falls Church, Virginia. The total income is $972,222,000, while the total tax returns are 6,710, and the average income is $144,892. This makes the city fairly wealthy, which means there are lots of opportunities for buying and selling homes. Earlier this year, Falls Church was named the healthiest city in the United States by U.S. News and World Report. The Falls Church economy is very stable, especially when compared to the rest of the United States. The unemployment rate is at an all-time low of 2.7%, compared to a 5.2% national average. The tax rates are equal to or higher than the national percentages: 6% for sales tax and 5.8% for income tax. Incomes are much higher for Falls Church when compared to the United States average: median resident income is around $59,861/year, while the median household income is $120,500/year. According to an article on Trulia, market trends show a 2% year over year rise in median home sale prices, with a -0% drop in median rent each month. For the period of July to October 2018, the median home sale price was $544,900 (based on 345 home sales). The median rent in Falls Church in September/October 2018 was $2,695 per month.
Photo courtesy of goochlandva.us
Coming in at number 12 is Goochland, Virginia. The total income is $1,467,279,000, while the total tax returns are 11,710, and the average income is $131,359. Goochland is a small community in Virginia — in 2010, the town had a population of under 1,000 people. The median household income in 2016 was $84,772 and the media per capita income was around $47,000. The median home and/or condo value in 2016 was $321,604, while the median gross rent was $405 per month. When it comes to real estate, there is a wide variety of housing in Goochland and housing costs are approximately 10% below national averages, making the market great for investors who are looking to fix and flip homes. Living in Goochland offers a high quality of life with a relatively low cost of living, especially when compared to the rest of the United States. In fact, just over 90% of Goochland residents own a home. However, because Goochland is such a small community, the housing market can be tight at times. According to Trulia, there are currently 54 homes for sale in the area.
Coming in at number 21 is Arlington, Virginia. The total income is $14,710,827,000, while the total tax returns are 123,710, and the average income is $119,435. In 2016, the population of Arlington was around 230,050. The median household income, also in 2016, was $110,388, a significant increase from the year 2000, when it was around $63,001. The median per capita income was $65,395 in 2016. In 2016, estimated home values were at $678,100, while median rent was $1,858 per month. According to Niche, Arlington is the number one place to live in Virginia, with an overall A+ grade. There is a high number of rental homes in the city, which offers an urban feel for its residents, with bars, restaurants, and shopping in close proximity to housing and schools. There are a number of trendy neighborhoods within Arlington itself, offering plenty of opportunities for a variety of lifestyles. Being so close to Washington, DC, there is quite a bit of history in the city. According to Livability, Arlington provides the best of both worlds when it comes to mixing urban and suburban living. Whether you’re looking for an investment property or something to fix and flip, there are a wide variety of types of homes available in Arlington, according to Trulia, at a range of price points, so there’s something for everyone.
Coming in at number 23 is Fairfax, Virginia. The total income is $64,524,563,000, while the total tax returns are 545,540, and the average income is $118,277. Fairfax is a county full of history and old world charm, making it an ideal residence for people of all ages. In 2017, the population was just under 25,000. There are a number of communities within Fairfax that offer living and working opportunities, as well as being close to Washington, DC. The job market in Fairfax is thriving, offering work in a variety of sectors, including information technology, government, and law. The economy of Fairfax is good, with an unemployment rate of just over 3%. The median income for a Fairfax resident is $51,137/year, while the median household income is $112,102/year. When it comes to Fairfax real estate, there was a -1% drop in median home sale prices year over year and a 2% increase in monthly rents. The median home sale price recently has been around $505,000, while rents are around $2,500 per month. This is roughly comparable to other counties in Virginia. According to Trulia, there are nearly 500 homes for sale at a variety of price points, making the market fertile for investors and those looking to fix and flip.
Coming in at number 24 is Loudoun, Virginia. The total income is $21,234,354,000, while the total tax returns are 180,980, and the average income is $117,330. Touted as DC’s wine country, Loudoun, Virginia is full of historical charm and interesting things to do. With a low unemployment rate and stable job growth, Loudoun is great for young professionals and families alike. The median resident income is $46,962/year and the median household income is $123,966/year. The Loudoun housing market is in good shape, according to this data from November 2018. The media sale price of a home was $485,000, which was up 4% from this time last year. However, there was a decrease in units sold in November (462) as compared to October (501); the number of units sold also represents a 9% decrease from this time last year. While active inventory was down compared to last year, there were still 966 active units, with plenty of room for buyers, investors, and those looking to fix and flip.
No matter which county you choose, Virginia is ripe with opportunities for real estate on an affordable scale.