Walnut Street Finance Blog

Hot Fix & Flip Markets for 2020

Posted by Walnut Street Finance Team on Feb 21, 2020 9:15:00 AM

Top Markets for Fix & Flip Investors

One of the biggest elements affecting real estate investment profitability is location, location, location. Luckily, there is no shortage of fix & flip markets that are hot for 2020.

hot_neighborhoodsWhen considering where to start your next project, you should think about a few things that will impact your investment, including:

  • Proximity to lifestyle amenities and good schools
  • Supply versus demand
  • Employment opportunities
  • Current and expected population growth
  • Trending move toward affordability

Let’s take a look at that last factor—this is the growing migration of buyers from large, expensive coastal markets (think New York, Los Angeles, San Fransisco) to mid-sized cities.

People are looking for quality of life at a more affordable price. You need to find the sweet spot in the right market where you can flip at a good rate and sell for a profit. According to the Emerging Trends in Real Estate report put out by Urban Land Institute and pwc, here are a few places to think about:

Washington, DC

  • Washington, DC: It may only represent 1.3% of the US, but this city still packs a punch when it comes to housing prospects. If historic homes is your thing, DC’s got them. Renovating an older house may present some challenges, but it can definitely bring in a pretty penny.

Northern Virginia

  • Northern Virginia: For decades, this region has experienced a boom especially as costs in Washington DC continue to climb. With the extension of the Metro’s Silver Line and a train link to Dulles International Airport, infrastructural improvements have made it even easier to commute and enjoy the amenities of DC. If you are ready for a multi-family fix and flip, northern Virginia is one of the leading markets for this type of property.

Austin, Texas

  • Austin, TX: Its slogan to “Keep Austin Weird,” deep talent pool, and unique lifestyle has made this market a huge draw for the ambitious and creative. Apple is building a $1 billion campus here too, which means that lots of young real estate hungry buyers will flock to this city.

Charlotte, NC

  • Charlotte, NC: Just like its sister cities in tech above, Charlotte is attracting technology and manufacturing firms alike, as well as an expanded airport hub and infrastructure system (new light rails!). With businesses abounding and better ways to get around, what’s not to like?

Raleigh/Durham, NC

  • Raleigh/Durham, NC: This bi-city region is topping the charts for home building prospects and has lots of opportunity for flipping. The concentration of educational institutions, including Duke University and the University of North Carolina, coupled with the Research Triangle Park has made this area a technology hot spot, ranking only a smidge behind Silicon Valley but exponentially cheaper.

Nashville, TN

  • Nashville, TN: With a booming music scene and feel-good attitude, this city is a fun place to visit and live. Plus, it’s attracted the likes of Amazon and Smile Direct Club, which is bringing double smiles to the housing market.

Atlanta, GA

  • Atlanta, GA: Home of Delta Airlines and Coca-Cola, Atlanta has consistently reinvented itself and is now a walkable and very livable city. The suburbs are drawing Millennials, being redubbed as “hipsturbias”…so maybe go where they are and follow that trend toward affordability.

Charleston, SC

  • Charleston, SC: It’s a jewel of a city with incredible growth potential. The city’s been aggressively attracting international corporations, allowing for lots of job opportunity. This market is on the cusp but has some gorgeous homes that could definitely use a little love.

Dallas/Fort Worth, Texas

  • Dallas/Fort Worth: The DFW Metroplex is sprawling and growing rapidly. Incorporating more than 1,779 square miles, the possibilities abound as the urban perimeter of each city has expanded to comfortably kiss with the highly-trafficked DFW airport in the middle. Oh yeah, not to mention that another Amazon hub is opening down here, and multiple major financial institutions are migrating this way.

By no means do you need to pick up and move to any of these locations in order to turn a profit on your next project. But it’s good to keep your finger on the pulse of what’s hot and why. We can help you find the best property in the best market that meets your own needs so that you can fix and flip successfully.

Let’s talk!

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Topics: Real Estate Trends

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