The Best States To Flip Property
Flipping property is an enticing notion. Every day we see everyday people making big money by revivifying ailing homes and bringing them back to the market where they are snapped up by adoring new buyers. On paper flipping a property is a great way to make money. If you have the free capital, the time and skill to complete the necessary renovations to add value and the patience to help the property find a buyer, it can pay serious dividends. You can make large sums of cash without the obligation that comes with being a landlord. Sounds great, right? However, if flipping property were easy, everyone would be doing it! Flipping houses is not for amateurs and when you choose to do it, you place a lot of risk upon your shoulders. The property TV shows make it look way easier (and quicker) than it really is.
Since property development has become such a televisual staple, many misconceptions have arisen around it. Many people go into the endeavor with laudibly conservative yet still unrealistic budgets for the rehab of the property. They can underestimate the inherent holding costs that come with waiting for a buyer for your property or they can find that even with a comprehensive facelift there’s no way that they can generate the kind of profit they were hoping for. No matter how many gorgeous bells and whistles you may add to a property, there will always be external factors which place a ceiling over how much you can expect to make from flipping the property. The most obvious, of course is…
Location, location, location
The property’s location is possibly the most crucial factor in determining whether it is worth the time, effort and expense to renovate and flip. And if you genuinely have your sights set on flipping property, you can expect to expend a great deal of all three. The trick lies, then, in choosing a state where property prices are reasonable enough to offer an entry point to nascent developers, yet will offer up a significant ROI to prevent you from jumping through too many house-flipping hoops. While your mileage may vary, depending on the city or town in which you buy, we have compiled a list of some of the best states in which to flip property…
Texas’ star is on the rise when it comes to property development and it’s certainly not hard to see why with great properties like these on the market in areas like Katy; https://www.agentharvest.com/areas/texas/katy-tx-real-estate-agents.html. The state is bouncing back from the ravages of hurricane Harvey stronger than ever. The home flipping market rose by 23% in North Texas last year, but there’s still plenty of room for new developers. Even if the Dallas- Fort Worth area is too rich for your blood, Texas is a sprawling state that’s rich with opportunity for those who seek it. Corpus Christi has had a sluggish economic growth but it’s on the up while Country Living recommends El Paso, Lubbock, Laredo, Grand Prairie and San Antonio.
If the heat of the southern states doesn’t sit well with you, you can still get your hands on great property bargains by looking north. Colorado is a great place to flip property, owing to rapid economic and residential growth. With an average property price of $538,477, an average flip time of 176 days and an average profit of $74,300 and ROI of 155.6% the stats speak for themselves. We’d advise against looking in Denver, where an influx of property flippers has already caused consternation among first time buyers. Instead, set your eyes on the municipality of Colorado Springs which is currently experiencing sales growth of 3.1% and price growth of 5.6%.
Commutable distance from Manhattan and offering buyers a great deal of bang for their buck, New Jersey has always been a prudent place in which to buy, although its proximity to New York has the potential to make initial outlay prohibitive for first time developers. Nonetheless, if you can scrape together the capital to make the average house price of $372,916 you’ll find a substantial ROI of 141.6% and an average profit of $102,300. You may have to wait a little longer with an average flip time of 207 days but if you can handle the holding costs, you’ll find that it’s more than worth the wait.
With an affordable cost of living, a booming job market and access to the best healthcare in the country, it’s clear to see why Maryland is an eminently desirable place to live. It’s a small state with a big personality and rich history. The good news is that it’s also an approachable state for nascent property flippers who may want to set their sights on Baltimore, or Columbia. As a whole, the state has an average property price of $369,454 with an average profit of $109,617and an ROI of 109.6%. You’ll be less likely to experience a lengthy wait for a buyer too as the average time for a flip is just 198 days.
Another neighbor to New York, Pennsylvania offers far more approachable property prices to the big apple (and much friendlier locals, too). Don’t let its less than favorable depiction in The Office fool you, Pennsylvania has a great deal to offer property developers and residents alike. Philadelphia and Pittsburgh are obvious standouts, offering New York style amenities at infinitely more reasonable prices. You can pick up a property in Pennsylvania for an average listing price of $268,692 and flip it at an average 132.7% profit making $57,600 for your efforts. With an average wait time of 147 days, it all points to a relatively quick and easy flip provided the right property comes along.
Of course, all of the above are based on averages (source). It’s really up to you to do your homework on the specific neighborhood and property in question. Nonetheless, those hungry for success in property development stand a good chance of finding it in these states.