House flipping is a fun career path, but one of the major mistakes people make is overbuilding their cities. Across California, many cities are upcoming, and on the other hand, many cities are decreasing in population and value. An ideal house flipper would be in one of these growing cities when house flipping in California.
On Realtor.com, they rated Fresno, CA, the 2nd best city to flip houses in the USA. It is not the cheapest place to flip in, but the return on investment is very high. On average, a flip in Fresno, CA will have a return on investment of $53,000 per flip. If you can run multiple flips a year, it could be a very profitable location to flip houses. Also, the ratio of flip to all home sales in this city is 3.5%. The last big reason to flip in Fresno, California, is that the pricing of houses in 2018 increased by 11.8% in 12 months! This increase in home value is unheard of and presents a great option to invest and flip in.
Los Angeles, California
According to the same market research done by Realtor.com, their 7th best city in the USA to flip in is Los Angeles, California. The entry into the market is very high, having the median home list price being $758,800, but with the right funding and enhancements, it could be a fantastic opportunity. The average flip profit as of 2018 in Los Angeles was $169,400. Once again, most home flippers do multiple homes simultaneously, providing a high ROI. Also, for those fans of the house flipping show “Flip or Flip” they started in the LA market in 2013, proving that there are opportunities. Even though the show isn’t 100% accurate they are still flipping homes in the show for a profit and wouldn’t pick a city that provided opportunities to make a substantial return on investment.
In this article written by Clever, they put Modesto, California, as their number one city to flip houses in California. What makes this city more attractive than the other two is the median house prices. In Modesto, California, the median home value is $295,500. This being the cheapest on our list of median home values in California cities. The price of homes also increased by 3.7% in 2018, providing excellent growth in the market for house flipping. This city is also right by Yosemite National Park, which is a unique opportunity to provide rental income if you are looking to have an investment property while waiting for the home to sell.
If you enjoyed the information presented in this article, then make sure to check out our other blogs here: https://zincfinancial.com/blog/. There are also links in the blog to the locations where the information was gathered to help determine the best cities to flip houses in. If you are flipping a home soon, make sure to read our blog “5 Big Mistakes Made When House Flipping.”