Best Places to Flip Houses

Adam McCann, Financial WriterJul 27, 2021

Adam McCann, Financial Writer
Jul 27, 2021

If you’re among the millions of HGTV viewers who’ve seen an episode of “Flip or Flop,” you’ve probably thought about the thrill of gutting a house and turning a five- or six-figure profit. But the process isn’t as easy as the professionals on television make it look. Any experienced home flipper would caution you that transforming a fixer-upper into a profitable property is a difficult process.

In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet. Breathing new life into a low-cost property won’t necessarily return your full investment and allow you to pocket another $63,500, the average gross flipping profit in Q1 2021. According to RealtyTrac, though, the current homeownership rate is 65.6 percent (down from a high of 69.20 percent in 2004). Current demand for homes is waning after a very strong 2020.

To help you choose the right market to list your masterpiece, WalletHub compared more than 170 U.S. cities across 26 key indicators of market potential, cost and quality of life. Our data set ranges from median purchase price to average full home remodeling costs to real-estate agents per capita.

Table of Contents

Main Findings

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Best & Worst Cities to Flip Houses

Overall Rank	City	Total Score	Market Potential	Renovation & Remodeling Costs	Quality of Life
1	Sioux Falls, SD	71.37	125	9	32
2	Missoula, MT	68.21	6	28	57
3	Peoria, AZ	67.84	55	11	21
4	Nampa, ID	67.69	106	4	11
5	Tampa, FL	67.43	25	25	31
6	Mobile, AL	67.15	1	21	139
7	Boise, ID	67.09	94	10	10
8	Rapid City, SD	67.00	98	12	92
9	Gilbert, AZ	66.90	41	68	2
10	Knoxville, TN	66.89	15	15	94
11	Billings, MT	66.23	2	31	97
12	Las Cruces, NM	66.08	95	5	129
13	Greensboro, NC	65.93	7	18	108
14	Fort Smith, AR	65.44	28	1	135
15	Chandler, AZ	65.24	36	48	14
16	Virginia Beach, VA	65.16	8	81	18
17	Henderson, NV	64.71	61	45	9
18	Huntsville, AL	64.48	12	56	46
19	Oklahoma City, OK	64.43	29	19	83
20	Des Moines, IA	64.38	64	2	100
21	Overland Park, KS	64.01	74	80	1
22	Little Rock, AR	63.68	11	6	156
23	Glendale, AZ	63.47	54	22	70
24	Orlando, FL	62.94	35	29	72
25	Fort Wayne, IN	62.72	76	8	87
26	Charleston, SC	62.68	34	66	26
27	Tulsa, OK	62.32	22	20	133
28	Columbia, SC	61.81	17	17	152
29	Nashville, TN	61.73	77	16	82
30	Raleigh, NC	61.70	67	47	29
31	Cape Coral, FL	61.30	62	77	7
32	Lincoln, NE	61.26	97	46	20
33	Laredo, TX	61.10	124	43	34
34	Tempe, AZ	61.02	50	55	55
35	Phoenix, AZ	60.99	63	26	85
36	Las Vegas, NV	60.75	43	38	90
37	Pembroke Pines, FL	60.57	66	72	19
38	Spokane, WA	60.46	46	51	75
39	Cedar Rapids, IA	60.36	60	34	107
40	Grand Rapids, MI	60.36	75	33	74
41	Columbus, OH	60.31	40	59	67
42	Tallahassee, FL	60.25	38	37	113
43	Scottsdale, AZ	60.19	45	115	4
44	Montgomery, AL	60.12	18	32	146
45	Colorado Springs, CO	59.88	87	52	38
46	Chesapeake, VA	59.77	23	89	48
47	Jackson, MS	59.55	170	3	167
48	Austin, TX	59.53	102	76	15
49	Indianapolis, IN	59.48	13	36	143
50	Reno, NV	59.00	90	64	30
51	West Valley City, UT	58.72	110	27	88
52	Denver, CO	58.58	91	61	39
53	Shreveport, LA	58.52	24	7	170
54	Mesa, AZ	58.36	59	84	44
55	St. Petersburg, FL	58.23	48	91	35
56	Springfield, MO	58.11	73	14	148
57	Cincinnati, OH	58.08	21	88	84
58	Winston-Salem, NC	57.94	33	60	119
59	Lexington-Fayette, KY	57.91	58	82	62
60	Charlotte, NC	57.85	44	87	52
61	Tucson, AZ	57.80	80	24	123
62	Charleston, WV	57.70	86	53	130
63	Memphis, TN	57.43	4	44	169
64	Salt Lake City, UT	57.32	100	71	36
65	Columbus, GA	57.20	3	73	165
66	Plano, TX	57.06	79	118	5
67	Arlington, TX	56.93	120	41	73
68	North Las Vegas, NV	56.88	65	42	124
69	Fort Worth, TX	56.85	127	54	49
70	El Paso, TX	56.71	171	13	79
71	Kansas City, MO	56.60	107	39	111
72	Omaha, NE	56.52	99	85	28
73	Jacksonville, FL	56.45	70	70	80
74	Louisville, KY	56.19	39	63	127
75	San Antonio, TX	55.18	145	30	110
76	Columbia, MD	55.12	26	119	56
77	Durham, NC	55.03	103	78	64
78	New Orleans, LA	54.74	32	50	160
79	Grand Prairie, TX	54.63	129	69	58
80	Akron, OH	54.52	47	58	153
81	Norfolk, VA	54.49	19	90	137
82	Pittsburgh, PA	54.41	31	123	50
83	Birmingham, AL	54.25	5	98	154
84	Wichita, KS	54.05	133	23	138
85	Aurora, CO	53.95	104	75	91
86	Baton Rouge, LA	53.89	27	67	159
87	Augusta, GA	53.58	37	79	151
88	Fort Lauderdale, FL	53.49	85	65	125
89	Richmond, VA	53.39	42	108	89
90	Fayetteville, NC	53.34	115	40	164
91	Salem, OR	53.22	93	93	71
92	Miami, FL	53.16	69	99	78
93	Lubbock, TX	53.06	147	49	116
94	Port St. Lucie, FL	52.79	108	96	45
95	Modesto, CA	52.75	116	62	117
96	Madison, WI	52.71	132	114	13
97	Hialeah, FL	52.70	78	94	93
98	Newport News, VA	52.44	9	112	145
99	Sacramento, CA	52.43	119	92	53
100	Washington, DC	52.14	83	113	60
101	Rancho Cucamonga, CA	52.09	139	105	22
102	Chattanooga, TN	52.08	10	134	114
103	Huntington, WV	52.04	71	74	148
104	Albuquerque, NM	52.00	153	35	136
105	Irvine, CA	51.38	123	146	3
106	St. Paul, MN	51.21	105	103	68
107	Garland, TX	51.20	137	95	69
108	Warwick, RI	50.45	101	124	37
109	Tacoma, WA	50.29	92	100	112
110	Toledo, OH	49.87	81	83	150
111	Buffalo, NY	49.82	49	116	128
112	Detroit, MI	49.62	57	86	162
113	Corpus Christi, TX	49.44	167	57	134
114	Fresno, CA	49.12	96	117	98
115	Seattle, WA	49.05	88	154	12
116	Cleveland, OH	48.79	30	110	155
117	Irving, TX	48.78	140	122	47
118	Milwaukee, WI	48.77	51	106	147
119	Ontario, CA	48.29	122	109	81
120	Portland, ME	48.07	117	126	65
121	Minneapolis, MN	47.87	109	131	66
122	Rochester, NY	47.57	72	97	157
123	Philadelphia, PA	47.40	56	128	131
124	Santa Clarita, CA	47.09	160	133	23
125	San Diego, CA	47.04	126	150	17
126	Vancouver, WA	46.57	111	132	77
127	Dallas, TX	46.32	114	129	99
128	Baltimore, MD	46.29	68	104	161
129	Chula Vista, CA	46.21	128	142	33
130	Riverside, CA	46.16	142	120	95
131	Nashua, NH	45.99	143	144	25
132	Manchester, NH	45.28	144	125	101
133	St. Louis, MO	45.22	14	155	140
134	Portland, OR	45.16	136	145	40
135	Atlanta, GA	45.02	52	163	54
136	Garden Grove, CA	44.98	154	137	43
137	Worcester, MA	44.95	53	148	120
138	Amarillo, TX	44.93	172	102	102
139	Oceanside, CA	44.90	130	140	51
140	Anchorage, AK	44.80	146	107	132
141	Providence, RI	44.46	121	111	142
142	Honolulu, HI	44.29	112	152	61
143	Houston, TX	43.56	164	101	141
144	Pearl City, HI	43.56	138	147	8
145	Moreno Valley, CA	43.25	151	130	106
146	Bakersfield, CA	43.18	84	143	122
147	Anaheim, CA	42.87	149	138	96
148	Aurora, IL	42.79	131	149	76
149	Fontana, CA	42.78	156	136	104
150	Huntington Beach, CA	42.45	155	159	16
151	Stockton, CA	42.17	141	121	144
152	Long Beach, CA	42.04	158	141	86
153	Dover, DE	41.89	20	135	166
154	Santa Ana, CA	41.43	163	139	105
155	Glendale, CA	41.14	157	156	59
156	San Jose, CA	40.74	118	167	24
157	Santa Rosa, CA	40.50	168	158	41
158	Chicago, IL	40.28	113	151	126
159	San Bernardino, CA	39.76	148	127	158
160	Boston, MA	38.44	135	168	42
161	Fremont, CA	38.30	150	171	6
162	New Haven, CT	37.66	82	153	168
163	Oxnard, CA	37.49	161	157	115
164	Wilmington, DE	37.43	16	162	172
165	Jersey City, NJ	37.16	159	165	63
166	New York, NY	35.90	134	166	103
167	Los Angeles, CA	35.10	165	160	118
168	Bridgeport, CT	32.80	89	161	171
169	San Francisco, CA	31.86	169	172	27
170	Yonkers, NY	31.58	162	169	109
171	Oakland, CA	31.25	152	170	121
172	Newark, NJ	29.10	166	164	163

Note: With the exception of “Total Score”, all of the columns in the table above depict the relative rank of that city, where a rank of 1 represents the best conditions for that metric category.

artwork 2021 best cities to flip a home

Ask the Experts

Flipping houses can be a tricky business, especially for novices. For insight on the house-flipping market and advice on choosing a good property, we asked a panel of housing and real-estate experts to weigh in on the following key questions:

What are the most common mistakes people make when trying to flip a house?
What is the best way to finance a flip? Should people try to go all cash or borrow?
What types of people are typically well-suited for engaging in house flipping?
What factors — financial and otherwise — should go into the decision of whether a house is a good candidate to be flipped?
Is house flipping a contributing factor to the overheating of some real-estate markets? Should this type of business be more regulated?

Ask the Experts

Peter Smirniotopoulos
Founder & Principal Petersgroup Consulting and Professor of Real Estate and Urbanism, School of Law – Seattle University
Read More

Brittany Cousins
Professor, Department of Economics, Trinity College of Arts and Sciences – Duke University
Read More

James Refalo
Professor, Finance, Law, and Real Estate, College of Business & Economics – California State University, Los Angeles
Read More

William G. Hardin
Ph.D., FRICS – Interim Dean, FIU College of Business; Associate Dean, Chapman Graduate School; Professor of Finance and Real Estate; Knight Ridder Endowed Eminent Scholar Chair; Tibor and Sheila Hollo Research Fellow; Co-Editor, Journal of Real Estate Research – Florida International University
Read More

John Sobota
M.S. – Lecturer / REPM Ambassador, Hospitality & Tourism – University of Wisconsin-Stout
Read More

Daniel Huerta-Sanchez
Ph.D. – Assistant Professor of Finance, Lutgert College of Business – Florida Gulf Coast University
Read More

More Experts

Methodology

In order to determine the best and worst cities to flip houses, WalletHub compared 172 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state, except for the cases where data limitation existed — across three key dimensions: 1) Market Potential, 2) Renovation & Remodeling Costs and 3) Quality of Life.

We evaluated those dimensions using 26 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for house flipping.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.

For context, “home flipping” is a real-estate term for buying a property with the purpose of reselling it for a profit, which is generated through appreciation of the home’s value or repairs and renovations.

Market Potential – Total Points: 35

Average Gross Return on Investment (ROI): Triple Weight (~7.50 Points)
Change in Gross ROI of Flipped Homes (2020 vs. 2019): Full Weight (~2.50 Points)
Median Purchase Price: Full Weight (~2.50 Points)
Share of Home Flips: Full Weight (~2.50 Points)
Average Days to Flip: Full Weight (~2.50 Points)
Average Ratio of Sale Price to List Price: Full Weight (~2.50 Points)
Real-Estate Agents per Capita: Full Weight (~2.50 Points)
Mortgage Lenders per Capita: Full Weight (~2.50 Points)
Real-Estate Tax Rate: Full Weight (~2.50 Points)
Note: This metric was calculated as follows: Median Real-Estate Tax / Median House Price.
Share of Flips Sold to Cash Buyers: Full Weight (~2.50 Points)
Share of Flips Sold to FHA Buyers: Full Weight (~2.50 Points)
Median Year Built: Full Weight (~2.50 Points)

Renovation & Remodeling Costs – Total Points: 35

Average Kitchen Remodeling Costs: Full Weight (~8.75 Points)
Average Bathroom Remodeling Costs: Full Weight (~8.75 Points)
Average Full Home Remodeling Costs: Full Weight (~8.75 Points)
Median Construction-Worker Salary: Full Weight (~8.75 Points)
Note: “Construction Worker” includes plumbers, electricians, carpenters, etc.

Quality of Life – Total Points: 30

Crime Rate: Full Weight (~3.00 Points)
Perception of Safety (Safety walking alone during daylight/night): Full Weight (~3.00 Points)
Note: These data are based on perceptions of visitors of Numbeo website in the past 3 years. If the value is 0, it means it is perceived as very low, and if the value is 100, it means it is perceived as very high.
K–12 School-System Quality: Full Weight (~3.00 Points)
Note: This metric measures the share of public schools rated by GreatSchools.org with above average score.
Share of Population with Walkable Park Access: Full Weight (~3.00 Points)
Family-Friendliness: Full Weight (~3.00 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Families” ranking.
Annual Job-Growth Rate: Full Weight (~3.00 Points)
Unemployment Rate: Full Weight (~3.00 Points)
Median Salary: Full Weight (~3.00 Points)
Note: This metric was adjusted for cost of living.
Median Credit Score: Full Weight (~3.00 Points)
Pace of Economic Growth: Full Weight (~3.00 Points)
Note: This metric is based on WalletHub’s “Fastest-Growing Cities” ranking.

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, ATTOM Data Solutions (RealtyTrac), Zillow, Houzz, Federal Bureau of Investigation, U.S. Department of Housing and Urban Development, GreatSchools.org, The Trust for Public Land, Council for Community and Economic Research, Numbeo, TransUnion and WalletHub research.

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