In this article, I will share the ten best states to flip houses in the US. In house flipping, the location is the most important thing to consider. Your profit will depend a lot on what state you are investing in. It will determine whether you will make a great profit or not.
For example, If you choose a state like Pennsylvania, you may have a quick profit as every day counts in this flipping business. Every single day you spend will cost you money. You have to be quick to book a good profit.
Here we will compare all the best states to flip houses in the USA with the average house listing price, the average number of days it takes to flip a house, the average profit on flipping, and the average return on investment. And then, we will know where to invest and what state can make you the most money.
What is House Flipping Exactly?
House flipping is a game where an investor finds an undervalued property or distressed property, fixes it up in less than 60 days, and sells it for a good profit.
For example, you have found a house that needs instant rehabbing or repair. You have bought it let’s say, with $50,000. But the market value of that house is $70,000. The seller will sell you the house because he needs instant money, and you are paying him in cash.
You will buy that house, fix it for about $8,000, and sell it for $70,000 with a profit of more than $10,000 in between 3 – 5 months. That is the process of house flipping. But you need to know how to find those undervalued homes and how to make an offer that the seller can’t ignore. Only then your flipping business will become successful.
Table of Contents
Ten Best States to Flip Houses in the US
The general rule for a successful house flipping is to purchase an undervalued house that needs repairs. The house must be in a place where the economy, population, and the overall market is growing, not where the market has reached its peak like some ultra-developed cities like New York.
In those super-developed cities finding an undervalued house is difficult for a beginner. You should search for an area where the market is about to grow, the demand for homes is increasing, more and more people are moving to the city, and the no of jobs is increasing, like in Florida. But please do your research first and then invest.
1. Florida
The ICG report says that in 2019, more than 950 people moved to Florida daily from other states in the US. Because of the climate, it is warm, and the City is on the coastline. The demand for homes in that state has increased by more than 260% compared to last year.
- Average house price: $410,000
- Average time to flip: 150 days
- Average profit: $106,000
- Average ROI: 26 percent
All these factors say, that Florida’s real estate market will grow continuously in the coming years.
2. New Jersey
New Jersey is an excellent destination for house flippers to consider as it offers a robust house market. Atlantic City, New Jersey is one of the best states to flip houses due to its rapid growth.
- Average house listing price: $470,000
- Average time to flip: 200 days
- Average profit: $75,000
- Average ROI: 16 percent
Also, you can choose Maryland, the state that ranked just under New Jersey but also offers some good investment opportunities.
3. Pennsylvania
The house-flipping market in Pennsylvania is hot. As long as an investor follows good house-flipping practices, turning a profit in this US state should be easy.
- Average house listing price: $270,000
- Average time to flip: 180 days
- Average profit: $37,000
- Average ROI: 14 percent
In 2022, flippers realized a 14 percent return on their investment when they flip a house, making this a top house-flipping pick in the USA.
4. Virginia
Virginia offers house flippers an average of 14 percent ROI for their efforts in a year. House flippers can find various modern and historic homes which need repairs that can be fixed and sold for a profit.
- Average house listing price: $380,000
- Average time to flip: 183 days
- Average profit: $53,000
- Average ROI: 14 percent
With that kind of ROI and opportunity, home lenders will be interested in fix-and-flip properties in the cities of Virginia.
5. Arizona
Arizona State is known for its growing population and low unemployment rate, which boosts the housing market. Arizona’s relaxed lifestyle draws residents from around the country, which increases the population there.
- Average house listing price: $408,000
- Average time to flip: 170 days
- Average profit: $114,000
- Average ROI: 28 percent
You can see the average yearly returns on the State, over 28%, which is very rare. Indeed is one of the best states to flip houses in the US.
6. Washington
I love Washington for its no local income tax and low unemployment rate. It is an attractive place to live and invest. The real estate market is hot here. But finding a good fixer-upper can be challenging.
- Average house listing price: $560,000
- Average time to flip: 150 days
- Average profit: $117,000
- Average ROI: 21 percent
The average home prices are high, but the average profit is also high. You should not worry about the home price if you can make good money here.
7. Texas
The recent pandemic has boosted the population in the State. Due to that, mid-sized metro areas benefitted heavily as the trend for working from home was on the rise. So, the housing market saw a huge jump and a jump of no for house flippers.
- Average house listing price: $320,000
- Average time to flip: 180 days
- Average profit: $64,000
- Average ROI: 20 percent
The ROI is good, and the average home price is also good. It is more suitable for a beginner investor.
8. North Carolina
North Carolina is currently a top place for flipping a house for a sharp eye investor. Most importantly, it’s a stable economy. It opens the market for flippers where buyers are ready to purchase, and the sellers are ready to sell.
- Average house listing price: $330,000
- Average time to flip: 195 days
- Average profit: $72,000
- Average ROI: 22 percent
As you know, a stable market attracts the most investment because of the stable jobs and startups.
9. Michigan
The City of Michigan has a great potential fixer-upper. Michigan is one of the best states to flip houses, especially the city of Detroit. Michigan as the job market is also steadily increasing. House Flippers will have many options to choose from. Here are the numbers.
- Average house listing price: $270,000
- Average time to flip: 190 days
- Average profit: $43,000
- Average ROI: 16 percent
The ROI is good, and the average profit is also with not too much homes price. You can go for it.
10. Colorado
Colorado is known for its tech companies that operate from there. As you know, where the business is, people are, and where the people are homes are. Here most people are office employees and in desperate need of homes. You can flip here within three months with a good plan,
- Average house listing price: $550,00
- Average time to flip: 180 days
- Average profit: $104,000
- Average ROI: 19 percent
The average profit attracts many investors despite its high average investment cost.
Last Words
Among the best states to flip houses, the average flip time is 180 days, with an average return of 15 percent in a year. If you calculate that for more than 20 years, all these states can deliver ROI of up to 100 percent. You are flipping, so we consider the maximum time it will take to sell the house to be one year.
So, if you’re looking for the best place to flip a houses in the US, do your research first. Knowing where to buy and sell can help you make the most money from your investment. Thanks for reading.
