House flipping might be considered a risky investment, but more daring homeowners are taking it on in the hopes of raking in the cash.
A recent WalletHub study looked at 172 cities and ranked them based on market potential, renovation and remodeling costs, and quality of life to determine the best and worst places to flip a home.
But WalletHub also pointed out that house flipping returns aren't what they used to be.
Flippers profited an average of $60,000 per property in the first quarter of 2019. This is $2,000 less than flippers made the previous quarter, and $8,000 less than they made a year ago.
But it seems some HGTV-inspired reno lovers will not be deterred.
The house-flipping rate reached a nine-year high in Q1, ATTOM Data Solutions revealed, with 7.2% of all home sales representing a flip – up from the previous quarter’s 5.9%.
And, according to ATTOM, the average flip sold for a median price of $215,000 with the average timeline for completion totaling 180 days.
In the WalletHub study, Sioux Falls, South Dakota, was named the best place to flip a house, ranking high for low renovation and remodeling costs.
Bridgeport, Connecticut, ranked the worst place to flip a house, nabbing poor scores for market potential, renovation costs and quality of life.
Other cities also stood out.
Pittsburgh had the highest average gross return on investment, while Austin, Texas, had the lowest.
Montgomery, Alabama, had the lowest median purchase price at $50,000, while San Jose, California, had the highest at $867,000.
Memphis, Tennessee, has the highest share of home flips, while Albuquerque, New Mexico, had the lowest.
Here is WalletHub's list of the 10 best cities to flip a home:
- Sioux Falls, South Dakota
- Missoula, Montana
- Rapid City, South Dakota
- Billings, Montana
- Peoria, Arizona
- Tampa, Florida
- Fort Smith, Arkansas
- Greensboro, North Carolina
- Las Cruces, New Mexico
- Boise, Idaho
Here is WalletHub's list of the 10 worst places to flip a home:
- Los Angeles, California
- New York, New York
- New Haven, Connecticut
- Boston, Massachusetts
- Wilmington, Delaware
- San Francisco, California
- Oakland, California
- Newark, New Jersey
- Yonkers, New York
- Bridgeport, Connecticut