Top Fix and Flip Markets in 2017

As the fix-and-flip industry continues to grow, real estate investors may be looking to expand their business into new markets.

One of the challenges investors face when expanding is identifying which markets offer the best opportunities for the continued growth of their fix-and-flip business. Based on a RealtyTrac report, we’ll explore the top fix-and-flip markets in 2017 for investors based on which markets had the most flips purchased by investors with financing, which cities and states had the highest home flipping rates, and the cities and states with the highest average return on investment for properties flipped by investors.

1) Markets With the Most Financed Flips

The cities with the most investors using financing on their flips were Colorado Springs, CO (69.3%), Denver, CO (54.8%), Seattle, WA (51.6%), Boston, MA (51.3%), and Providence, RI (47.3%). These areas were a part of a study of 85 Metropolitan Statistical Areas (MSA’s) that had completed at least 90 flips through the first quarter of 2017. Seattle is currently experiencing a housing boom and has become one of the hottest markets for flippers due to the increased demand and solid returns in the area. As a whole, these markets are encouraging to flippers because it shows that they are healthy housing markets and also have a strong inventory of fix-and-flip homes.

2) Highest Rate of Homes Flipped

For the highest rate of homes flipped in the country, Washington, D.C. was first in the nation at 10.7%. Nevada (9.8%) was second on the list followed by Alabama (9.0%), Tennessee (8.9%), Maryland (8.5%) and Missouri (8.0%). The specific cities that had the highest rate of flips were Memphis, TN (15.1%), York-Hanover, PA (12.5%), Fresno, CA (11.1%), Birmingham, AL (10.3%) and Las Vegas, NV (10.0%). This is another positive sign of where strong fix-and-flip markets are located. Investors can see that these areas have a large inventory of distressed properties in need of rehab which represent a large portion of the total number of homes sold.

3) Highest Average Return on Investment

The states that offered investors the highest return on investment for their flips were Pennsylvania (107.1%), Ohio (96.3%), Louisiana (96.0%), New Jersey (87.1%) and Oklahoma (85.7%). Based off of the 85 MSA’s studied with at least 90 completed flips, the cities with the highest return on investments were Pittsburgh, PA (141.8%), Allentown, PA (122.2%), Cleveland, OH (118.6%), Philadelphia, PA (111.7%), and Baltimore, MD (106.0%). These are excellent returns and are encouraging for investors considering flipping properties in these cities and states.

Venturing into a new market can be a risk but with a good understanding of where the top fix-and-flip markets are located, investors can lower that risk by focusing on those properties located in the top markets in the country. Based on this report investors can take this information and further explore the options available to them in these cities and states and choose which will provide them the greatest opportunities for growth and success.

At Lima One Capital, we lend across the country in 42 states including Washington, D.C. As the nation’s premier lender for real estate investors, investors will have access to industry leading fix-and-flip, rental, and multifamily financing in the top markets throughout the country. If you have any questions about Lima One Capital or any of our programs feel free to contact us at [email protected] or 800-390-4212, we’d be happy to answer your questions!