4 California cities among the worst to topple
No California city is listed in the top 10 cities to return homes to
If you’re one of the millions of HGTV viewers who’ve seen an episode of “Flip or Flop,” you’ve probably thought about the fun of clearing out a house and making a five- or six-figure profit. But the process isn’t as simple as TV pros make it out to be. According to WalletHub’s Adam McCann, any experienced flipper would warn you that turning a repairman into a profitable property is a difficult process.
In other words, don’t get your hands dirty until you learn a thing or two about real estate, construction, and the damage your project could do to your wallet. Breathing new life into a low-cost property won’t necessarily give you back your entire investment and will allow you to pocket an additional $63,500, the average gross profit in the first quarter of 2021. According to RealtyTrac, however, the homeownership rate current ownership is 65.6% (down from a high of 69.20% in 2004). Current housing demand is declining after a very strong 2020.
With house flippers averaging $63,500 gross profit in the first quarter of 2021, personal finance website WalletHub has released its report on the best places to flip houses in 2021.
Four California cities found themselves among the worst cities in the country for flipping homes. Find out which cities made the list below.
To help serious real estate investors find the best markets to list their flipped properties, WalletHub compared over 170 US cities across 26 key metrics. The data set ranges from median purchase price to average full home renovation costs to real estate agents per capita.
The best cities to change house
1. Sioux Falls, SD
2. Missoula, Montana
3. Peoria, AZ
4. Nampa, ID
5. Tampa, Florida
6. Mobile, AL
7. Boise, ID
8. Rapid City, SD
9. Gilbert, AZ
10. Knoxville, TN
The worst cities to change house
163. Oxnard, CA
164. Wilmington, DE
165. Jersey City, New Jersey
166. New York, NY
167. Los Angeles, CA
168. Bridgeport, Connecticut
169. San Francisco, CA
170. Yonkers, New York
171. Oakland, CA
172. Newark, New Jersey
The best against the worst
- Pittsburgh has the highest average gross return on investment, 128.12%, which is 9.4 times higher than Raleigh, North Carolina, the city with the lowest at 13.64%.
- Montgomery, Alabama has the lowest median purchase price, $60,000, 15.3 times less than San Jose, Calif., the city with the highest price at $920,000.
- Memphis, Tennessee has the highest share of home flips, 11.95%, 6.1 times more than Portland, Maine, the city with the lowest at 1.95%.
- Charleston, South Carolina has the most real estate agents (per 100,000 population), 247, or 41.2 times more than Worcester, Massachusetts, the city with the fewest at 6.
- Little Rock, Arkansas, has the lowest average full-home renovation costs, $75,888, five times lower than Atlanta, the city with the highest costs at $375,734.
To see the full report and ranking for your city, click here.
- House flipping: Shutterstock