Where Property Flippers Can Make the Highest Profit

Profits are shrinking for home flippers. High home prices and construction costs are taking from profits to flip. But home flipping is still increasing, according to data from realtor.com(R).

“There is opportunity, but you’ve really got to be smart in where you purchase and know that market,” Charles Tassell, CEO of the National Real Estate Investors Association, told realtor.com(R). “Finding the right spot is the hard part right now.” A home flip is defined as the same property resold within 12 months of the last purchase.

More than 59,000 sales were considered home flips across the U.S. from April to June–the highest level since 2005, according to realtor.com(R)’s data. But profits are down in the majority of metros: Flippers made the lowest profits since 2008.

“The overall cost of renovation projects has gone up substantially, and that’s also impacted profitability,” Tassell says.

Realtor.com(R) looked at the median profit for home flips in the 150 largest metro areas compared to a year ago. The following markets topped its list as best places to flip a home:

1. Columbia, S.C.

Median list price in September: $275,000
Median profit on a flip: $61,667
Median profit percentage change: 7.9%

2. Phoenix

Median list price in September: $475,000
Median profit on a flip: $85,500
Median profit percentage change: 7.7%

3. Dallas

Median list price in September: $396,500
Median profit on a flip: $71,383
Median profit percentage change: 6.6%

4. Raleigh, N.C.

Median list price in September: $427,250
Median profit on a flip: $46,333
Median profit percentage change: 6.2%

5. Columbus, Ohio

Median list price in September: $289,500
Median profit on a flip: $76,733
Median profit percentage change: 6.2%

View the worst places to flip a house on realtor.com(R)’s list.

[#item_author] Feedzy

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