Investors flipped more than 110,000 homes in 2015, the highest rate since 2007. These investors brought in an average profit of $55,000, according to WalletHub, a personal-finance website.
WalletHub compared 150 of the largest cities based on 19 key metrics ranging from median purchase price and average full-home remodeling costs to housing-market health index to determine the best places for flipping houses.
For instance:
- Pittsburgh has the highest average gross return on investment at 129.5%, 6.2 times higher than Austin, Texas, the city with the lowest percent at 21.2%.
- Cleveland has the lowest median purchase price at $45,000, 12.9 times lower than San Jose, California, which has the highest price at $580,000.
- Memphis, Tennessee, came in with the highest percentage of home flips at 11.1%, 3.5 times higher than the lowest cities of Austin, Texas; Indianapolis and Pittsburgh which totaled 3.2%.
- Mobile, Alabama, has the lowest average kitchen remodeling costs at $13,336. Newark, New Jersey. has the highest costs as $56,108.
Using a combination of all of these factors, WalletHub ranked these cities as the top 20 cities for home-flipping:
20. Grand Rapids, Michigan
19. Springfield, Missouri
18. Pembroke Pines, Florida
17. Des Moines, Iowa
16. Gilbert, Arizona
15. Cape Coral, Florida
14. Peoria, Arizona
13. Nashville, Tennessee
12. Corpus Christi, Texas
11. Tulsa, Oklahoma
10. Laredo, Texas
9. Boise, Idaho
8. New Orleans, Louisiana
7. Tampa, Florida
6. Lubbock, Texas
5. Lincoln, Nebraska
4. Oklahoma City, Oklahoma
3. El Paso, Texas
2. Fort Wayne, Indiana
1. Sioux Falls, South Dakota
