House flipping can be a profitable business, but especially if you choose the right location.
joybirdInc., a handcrafted furniture company, analyzed 11 factors in real estate markets across the United States to reveal the best spots for maximizing the return on your investment in flip-flops.
The factors used were determined using data from Zillow, Redfin, US Bureau of Labor Statistics, and more. They include:
- Median home price
- Average price for fixer upper homes
- The number of fixer-upper houses
- Average days on the market
- Home flipping total return on investment
- property tax rate
- Average kitchen remodeling cost
- Average bathroom remodeling cost
- The number of real estate agents
- Number of construction managers
- number of construction workers
Five out of the 10 states in Joyride’s final ranking are located in the South, indicating that this area of the US is ideal for house flipping.
Best State for House Flipping No. 1: Louisiana
Louisiana is the best state for house flipping. The state scored 41.1 out of 50 on the Joybird report.
The average price for fixer upper homes in Louisiana is $196,763. The report states that the country also provides a large construction workforce.
The total flip-flop profit in 2022 was $75,000 and the total return on investment was 55.6%, which equates to a 3% increase since 2021, according to Motley Fool.
One advantage that Louisiana offers to those looking to shift homes in the state is a low property tax rate of 0.55%, i.e. 0.44%. lower than the national average from 0.99%.
Louisiana is the best US state for house-flipping, according to Guibird.
Image by Eric Brunske Photography | moment | Getty Images
Top 10 US states for flipping homes
- Louisiana
- Michigan
- Alabama
- Delaware
- Ohio
- Pennsylvania
- Maryland
- Mississippi and Virginia Favorite
- Mississippi and Virginia Favorite
- fl
Michigan is the second best state for home flipping, scoring 38.3 out of 50.
according to Motley Fool Per the report, the total flipping profit for 2022 in Michigan was $58,247 and the total ROI was 51.70%.
The average Michigan home value is $235,361, up 2.3% from last year. The average days on the market was 17 days, up two years from the previous year, Redfin mentioned.
Alabama is ranked in the top 3 states for flipping homes, according to Joybird.
Westend 61 | Westend 61 | Getty Images
Alabama is the third best state for swing homes, with a score of 37.7 out of 50.
According to Zillow, the median home value in Alabama is $223,246, up 4.6% from last year.
That’s nearly half the $410,200 national median sale price for an existing US home, according to National Association of Realtors.
In 2021, Montgomery, Alabama, was among the top 10 places to flip homes, according to WalletHub. It has also been rated as the city with potential market No. 1.
Don’t Miss: Want to be smarter and more successful with your money, your work, and your life? Subscribe to our new newsletter!
Get CNBC for free Warren Buffett’s Guide to Investingwhich summarizes the #1 billionaire’s best advice for ordinary investors, the do’s and don’ts, and three key investing principles into a clear and simple guide.
More Stories
JPMorgan expects the Fed to cut its benchmark interest rate by 100 basis points this year
NVDA Shares Drop After Earnings Beat Estimates
Shares of AI chip giant Nvidia fall despite record $30 billion in sales