GOBankingRates recently ran the house flipping data and put together a list of the ten best and worst states to flip in. They took a look at the median home list price, the average number of days it takes to flip a house, the average gross profit per flip, and the average gross ROI in each state. Putting together all of those house flipping statistics, here is a summary of the five worst and best states to flip houses in this year.
The Worst States to Flip Homes In
- South Dakota
It takes a whopping 188 days on average to flip a home in this state, and the gross profits are minimal – an average of $17,750 – due to low overall home prices.
You’ll see better gross profits in Wyoming due to resort destinations like Jackson Hole, but it’ll take you an average of 231 days to get it done, perhaps due to snow and other weather delays. Wyoming comes in dead last in the days to flip category.
Montana is another state with very long flip times – 223 days on average – and the profits are minimal at just 12.9% gross ROI, partly due to low overall listing prices in this affordable state.
The issue here is that home prices are at the extreme high end, with the average list price coming in at over $900,000. Such high listing prices and the remote location mean that gross ROIs are among the smallest at 27.7%.
You’d think that with such low home prices – under $200,000 on average – this state would do better, but evidently the home prices are low for a reason. The average gross ROI on flips in Mississippi is a dismal 4.3%.
The Best States to Flip Homes In
The average gross ROI in Colorado is a whopping 155.6%, and with the median list price around the half-million mark. Homes here aren’t cheap, but they won’t price most buyers out of the market.
Right next door to last-place Mississippi, Louisiana is sitting pretty with average gross ROIs of 104.2% and a short turnaround period of 166 days on average.
- New Jersey
Homes in New Jersey are reasonably priced compared to neighbor New York, and that has led to average gross profits just over $100,000 and an average gross ROI of 141.6%.
Getting started as a flipper is easy in Pennsylvania with a median list price of just $224,090. Average gross profits exceed $100,000 here.
Tennessee is at the top of the list because home prices are low, the gross ROI exceeds 130%, and it only takes 147 days to flip a home here.
ZINC Financial offers licensed rehab loans in numerous states throughout the country. Contact our team to learn more!