Top 5 Cities For a Fix & Flip in 2023

The real estate market in 2023 continues to provide lucrative opportunities for savvy investors, particularly those who are interested in ‘fix and flip’ projects.

Choosing the right location for this venture is one of the most important aspects of the fix-and-flip investment strategy.

Let’s look at the top five cities that have shown promising potential for fix and flip projects, based on factors such as real estate market trends, property prices, or renovation costs. We’ll also include tips on how to select the perfect property type for flipping.

What makes a location ideal for a fix and flip?

For successful fix and flip projects, your property’s location is one of the most important factors.

The following are the most important qualities to consider when choosing the right location for your next fix and flip property.

Real estate market

Areas with a thriving real estate market typically have a high turnover rate, which is ideal for flipping houses.

Austin, Texas has a thriving real estate marketing where you could expect to sell properties quickly thanks to its high demand. Quick turnovers in these cities are ideal for a fix-and-flip to minimize holding costs and maximize profits.

Property prices

Look for locations where property prices are relatively low but increasing can offer great opportunities.

For example, suppose you’re looking at property in Detroit, where property prices have been historically low, but show promising signs of growth. This could potentially offer a great opportunity to purchase low, renovate, and sell at much higher prices as the marketing continues improving.

Neighborhood quality

Established neighborhoods with good schools, amenities, and low crime rates are desirable.

Indianapolis is a good example because it offers a vibrant community, diverse amenities, and a strong sense of local pride, which could fetch premium prices for newly renovated and marketed properties in this neighborhood.

Renovation costs

Areas, where renovation costs are more affordable, will help you maximize your profit margin over more expensive areas.

Charlotte, North Carolina has low costs of living, and construction costs are lower than national averages, which can help keep renovation costs in check.

What types of properties are best for a fix and flip?

Fix and flip ventures are a popular investment strategy offering substantial returns when executed correctly.

The choice of the right property type is a critical decision for this process. Here are the five types of properties that are often attractive for fix and flip projects.

1. Distressed homes

These homes will typically be below market value because the owners are in a hurry to sell, usually due to financial difficulties. The low purchase price leaves room for improvements and increased value.

Research local real estate listings and foreclosed auctions to find these types of properties, but be prepared to handle potentially significant renovations.

2. Older homes in established neighborhoods

These homes need updates to meet modern buyer expectations, but their location in desirable neighborhoods can command higher prices.

Look for homes in areas with low crime rates, good schools, and nearby amenities. The charm of an older home, combined with modern upgrades, can attract a variety of buyers.

3. Auctioned properties

Properties sold at auction are often undervalued, which can lead to high-profit margins post-renovation.

Regularly check local and online auction platforms, and be ready to act fast! However, remember these properties often require a significant investment in terms of renovation and time.

4. Foreclosed homes

Banks or financial institutions sell foreclosed homes at a discount, providing you room for potential profit.

Look for listings on bank websites, or consider hiring a real estate agent with experience in foreclosures. Also, keep in mind these homes will likely require more extensive renovations because of potential neglect.

5. Multi-family homes

Flipping a multi-family property can provide multiple units for sale, increasing the overall profit margin.

Look for properties in neighborhoods with high rental demand but be prepared for potentially more extensive renovations and longer timeframes.

Top 5 cities for a fix and flip in 2023

Taking all the qualities of a good flip and the best types of properties we’ve discussed, we’ve curated a list of the top five cities to think about buying your next flip.

1. Atlanta, Georgia

Atlanta’s strong economy, high demand for housing, and relatively high median home sale price of $390,000 make it a promising location for fix and flip investors. Despite the average days on the market being relatively high at 37, the economic vitality and housing demand of the area may offer worthwhile returns.

2. Hartford, Connecticut

Hartford presents an attractive opportunity for fix and flip investors with its lower median home sale price of $252,550, higher homeownership rate, and lower cost of living. The average days on the market here are relatively high at 61, but the lower cost of living might help balance out holding costs.

3. El Paso, Texas

With a growing population, low unemployment rate, and relatively low median home sale price of $251,600, El Paso offers an intriguing market for house flippers. An average of 24 days on the market suggests properties here can sell fairly quickly once renovations are complete.

4. Jacksonville, Florida

Jacksonville stands out with its high return on investment and the low median purchase price of $292,500. With an average of 48 days on the market, this city provides a favorable environment for fix and flip projects.

5. Charlotte, North Carolina

Charlotte’s high economic growth, lower average full home remodeling cost, and robust median home sale price of $377,936 make it an attractive market for fix and flip investors. The average days on the market here are relatively low at 38, suggesting a quick turnover potential.

Work with Park Place Finance for your next fix and flip

Whether you’re looking to flip a property or invest in a long-term rental, your success can hinge on finding the right financial partner.

Park Place Finance, a Texas-based private lender, specializes in providing quick, reliable financing for real estate investors across America.

We operate in 47 states to offer competitive rates and flexible terms tailored to your individual project needs. Looking to get a fix and flip money loan for your next investment property? Then call us today at (866) 407-1599.