Best Cities for Flipping Houses 2023
Whether you're new to the game or a seasoned veteran, house flipping can be a lucrative business venture. With the right strategic moves and understanding the market trends, you could very well end up making sizeable profits. However, not all cities provide the same potential for profits. As we progress into the latter part of 2023, here are the top cities you should consider when embarking on your house-flipping journey.
What Exactly is House Flipping?
House flipping, in essence, is when an investor acquires properties under market value, with the sole intention of selling them for a profit. This process usually involves a good degree of renovation, thus the term 'flip'. It's not just a real estate business; it's an art, that requires foresight, strategy, and understanding of your market.
If you're a beginner, don't fret! Keep reading for more great tips and strategies on house flipping.
Top Cities to Flip Houses in 2023
Let's now discuss some of the best cities for property flipping in 2023. We've conducted an analysis based on factors like average house prices (house price index), vacancy rates, property taxes, the area's cost of living, and the average debt-to-income ratio in the area.
Now I know what you are thinking, Ohio is a state, not a city. But we had 4 of the top 10 cities all come from the great state of Ohio. According to the data and metrics we collected Toledo, Cincinnati, Cleveland, and Columbus are all some of the highest-ranked cities for real estate investing. Especially for house flippers.
Why is that?
Ohio's House Price Index (HPI) is close to the national average. The rental vacancy is low. Only 4% from the data we gathered! Also, the CPI, Consumer Price Index, in the Midwest region is one of the lowest in the country.
The odds are high that you'll be able to find areas that your buyers are searching for in these Ohio cities and turn a great profit, with how the numbers stack up.
The next notable city to house flip in is Detroit, Michigan. There is an abundance of properties in need of a sprucing up in Detroit. But, what made it rank within the top 5 cities to house flip in 2023 was not calculated on that factor alone.
Detroit's house price index was right in line with the national average, making it an affordable place for people searching for housing. Also, like Ohio, with it being in the Midwest Region it has some of the lowest CPI in the country. When you look at the rental vacancy rates they are as low as 4.3%. That means there won't be a shortage of potential buyers to partner with, or if you decide to flip the property and hold it, you'll be able to find tenants.
The next two cities that ranked the highest are in the great state of Missouri. St. Louis and Kansas City, we are looking at you! Similar to the other cities, the Midwest allows for unique opportunities in investing because of the lower cost of living. Leading to houses closer to the national average HPI. Combine that with the lower property taxes in Missouri and it is a winning combination that pushed these two cities to the top of the list of over 100 cities.
Another two cities in our top 10 cities to flip houses in 2023 fall in one state. Lexington, KY and Louisville, KY are great cities to flip houses in according to our data. They have a slightly higher CPI from the above cities on the list, but the southern region falls still comparably low to other regions.
That lower CPI correlates with the house price index in both Lexington and Louisville. And, at the time of gathering this data, the median property tax was only 0.86%. These three strong data points make up for the slightly higher vacancy rate of 4.9%.
The last city of the top 10 list is Indianapolis, IN, but it is worth mentioning that the eleventh city was none other than Fort Wayne, IN. Indianapolis offers unique investment opportunities. Our own CEO owns several rental properties in Indianapolis and so do a few of our other team members here at DealMachine.
With a lower median property tax of 0.85%, low HPI, and low CPI it pushes this city just into our top 10 list. Along with the cities from Kentucky, Indianapolis does have a slightly higher vacancy rate of 5.4%. But when you are looking at some of the other cities from our data in Texas and Florida this rate looks great by comparison (some had 6.5% vacancy).
For more of a breakdown of the metrics and data, check out our article revealing the best cities to invest in wholesale real estate for 2023.
Profiting from House Flipping: Strategies for Success
Investing in real estate is more than just "buy low, sell high." It's about having a workable property flipping strategy - from finding the right houses for flipping, implementing effective fix and flip strategies, and knowing when the time is right to offload your investment.
Remember, a well-planned house-flipping attempt can lead to robust returns. But keep in mind: patience is key. Smart use of your investment capital, wise property selection, and appropriately timed renovations will pave the way for your house-flipping success.
The art of house flipping is an enticing one for real estate investors. While it comes with its share of challenges, the rewards can be substantial. Remember, house flipping doesn’t occur in a vacuum. The city you choose to flip in plays a crucial role.
Hopefully, this guide has helped with the top cities for flipping houses in 2023 and provided tips to make your houseflipping journey successful. Jump in with confidence, and happy flipping!
Resources for Data
Check out the data in your city. Here are the sources we used, so you don't have to hunt them down.
About Samantha Ankney
Samantha has been a media specialist for DealMachine for 1.5 years. She produces, edits, writes, and publishes all media that is distributed to the DealMachine and Real Estate Investing community.