Walnut Street Finance Blog

Top 12 Markets For House Flippers In 2019

Posted by Walnut Street Finance Team on Mar 19, 2019 3:45:26 PM

When it comes to house flipping, the market waxes and wanes, just like everything else in the real estate world. At the beginning of 2019, the market was still fairly risky, but there are some places where house flipping can still be a lucrative endeavor. 

It’s important to keep in mind there are a number of factors that go into making a city worthwhile for home flipping. According to Mashvisor, two of the most important factors are:

  1. Decreasing unemployment rate and job growth

  2. Readily available and affordable labor and construction materials

We’ve pulled together 12 markets where house flipping will most likely remain lucrative in 2019. Here, in no particular order, are those 12 cities and a little about them.

1. Raleigh, North Carolina

Raleigh, North Carolina, USA downtown city skyline.

The median home price is $340,000, while the increase in home flips is 63.4% and the difference between purchase and sales prices is 32%. Raleigh is an excellent flip market because there has been quite a bit of growth in the tech sector over the last several years, leading to an influx of investors with cash on hand to purchase investment properties. Because of this increase, more seasoned flippers are moving to out of the way neighborhoods to find flips they can purchase at a relatively low cost and then sell at double what they paid for the home, making a tidy profit.

2. Charlotte, North Carolina

Charlotte, North Carolina, USA Skyline.

The median home price is $323,300, while the increase in home flips is 42.5% and the difference between purchase and sales prices is 36%. In Charlotte, growth is happening at a rapid pace. The business boom is strong, especially now that Honeywell has announced they are relocating their headquarters from New Jersey to North Carolina. Belmont is a particularly up and coming neighborhood, with bars, restaurants, and coffee shops popping up on a regular basis. Among flippers, older homes are the most popular because they come inexpensively but can be sold for a decent profit.

3. Orlando, Florida

Orlando, Florida, USA skyline at dusk on Eola Lake.

The median home price is $300,000, while the increase in home flips is 37.1% and the difference between purchase and sales prices is 41%. Orlando isn’t just alluring because of Disney World, but also because of the prevalence of affordable older homes. Buying a brand new residence isn’t necessarily on the minds of those flocking from the northeast seeking more affordable housing. Obviously, Orlando, just like anywhere else, has homes for sale at a variety of price points, many of which are just outside the city. Orlando flippers are heading there, where homes can be purchased for around $150,000, but sold after renovations for around $250,000.

4. Phoenix, Arizona

The median home price is $330,000, while the increase in home flips is 35.7% and the difference between purchase and sales prices is 36%. When looking at raw numbers, Phoenix sees the most home flips of any city in the United States. The investment group market is thriving, particularly on Facebook and Meetup, and the city even had a short-lived HGTV show called Phoenix Flipped. Phoenix is also popular among retirees who are coming to the city from more expensive west coast cities, especially in California. The popular method for finding flip homes tends to be cold-calling home owners to convince them to sell, while other flippers go after older homes that need a fair amount of work.

5. Las Vegas, Nevada

Las Vegas city viewed at night with all the lights on

The median home price is $320,000, while the increase in home flips is 33.7% and the difference between purchase and sales prices is 38%. Home prices in Las Vegas are finally beginning to rebound after the housing market crashed several years ago. Housing prices are up around 12% year over year, which is giving flippers the confidence they need to get back on the market. Older homes continue to be the most popular, especially ones that are selling to flippers for around $150,000.

6. El Paso, Texas

When it comes to fix and flips, El Paso has excellent market potential. The thriving economy is home to a variety of jobs from government work to healthcare, and the city has been named the eleventh best place to retire in the United States. The median home price is around $126,000 and Zillow predicts home prices will continue to rise in the coming year. Not only that, El Paso is affordable when it comes to renovation costs, making it easy for flippers to make a small, but profitable, investment.

7. Sioux Falls, South Dakota

Sioux Falls didn’t get named the “Best Little City in America” for nothing. Flippers will find themselves eager to get involved in the investment market here thanks to the low cost of renovations. The city is home to financial and healthcare companies, two sectors that are growing on a consistent basis. The median home price is around $187,000 and that rate is expected to increase by almost four percent over the next year.

8. Fort Wayne, Indiana

Most people don’t think of Fort Wayne as a thriving metropolis, but the low cost of living and affordable housing costs make it an attractive city for flippers and first-time home buyers alike. The city is also ripe for revitalization in the next couple of years. Fort Wayne was actually named one of the most in-demand cities for renters in 2018. With median home prices around $128,000, now is a great time to buy an investment property, either to sell or flip to an Air BnB because home prices are expected to rise around five percent in the next year.

9. Oklahoma City, Oklahoma

Named one of the most affordable real estate markets in the United States, Oklahoma City has median home prices around $128,000, with home values increasing steadily year over year. Oklahoma City is also a great place to start a business, so if you’re looking to get into the flipping business full-time, this may be your best bet. You’ll also find home renovation costs to be affordable and quality of life to be good.

10. Nashville, Tennessee

Nashville, Tennessee downtown skyline at Cumberland River.

Since late 2018, the Nashville market has favored both buyers and sellers with home prices rising; the inventory is also slowly rising as time passes. The median home price in Nashville is around $256,000. Home values have risen eight percent in the last year and Zillow anticipates another eight percent increase in the next year. The economy and job market in Nashville are strong, two things that make the real estate market attractive for investors. Another great aspect of the Nashville real estate market is that there are known returns in areas where revitalization is happening. In short, investing in the Nashville real estate market will consistently provide good return.

11. Boston, Massachusetts

Boston, Massachusetts aerial view and skyline

The real estate market in Boston is predicted to enter a cooling pattern in the first part of 2019. However, this means that the rental market will get hotter, even though Boston is one of the most expensive cities for home rentals right now. There’s also a lot of new development happening on a larger scale. Two major development projects are in the works, including an expo center and a municipal lot.

12. Denver, Colorado

Right now, Denver is a hot market for buyers. The median home price is around $415,000 and is expected to increase about six percent in the next year. Although there is limited room to grow in Denver due to its mountainous terrain, the lack of growth keeps home prices high, which is good for investors and sellers. Redevelopment is also experiencing a rise and there will be good returns on those investments. Finally, the Denver rental market is growing at a fairly rapid pace, due in part to the diverse student population.

No matter what your flipping plans for 2019, you’re sure to find a market that will work to your benefit.

Fix and Flip

Topics: Real Estate Trends

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