According to Realtor.com, 59,000 homes were flipped in the United States from April to June. Flipping a house is defined as buying one with the intention of selling it at a profit, usually after repairs. One challenge is that the profit is at risk between the buying and the selling. However, that risk almost certainly has fallen some because of the huge real estate boom in America.
Home values have skyrocketed in some cities by percentages well into the double digits. One reason for that is exceptionally low interest rates. Another is that people have moved from expensive coastal cities like New York and San Francisco to inland cities with more reasonable real estate prices and what is often considered a better quality of life. These relocations have been made easier because millions of people can now work from home.
Realtor.com has issued a research paper titled “With Profits Flopping, These Are the Best (and Worst) Places for Home Flippers.”
However, the home-flipping business may not be as profitable as it seems at first, at least in some places. Charles Tassell, a real estate investor and chief operating officer of the National Real Estate Investors Association, commented, “There is opportunity, but you’ve really got to be smart in where you purchase and know that market. Finding the right spot is the hard part right now.”
Real estate prices have always been tied to location. Flipping is no exception.
Two things stand out in the report. One is that some very rapidly growing cities tend to produce the best profits for flipping. Another is that more and more flippers want “turnkey” houses that do not require large sums to repair. Homes that do not need any improvement tend not to bring the profit margins like those that do.
The most profitable city for flipping homes is Columbia, South Carolina. The median list price in September was $275,000. The median profit on flipped homes is $61,667, a remarkable 22% of the home price.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.