These are the 10 worst states to flip a house in

2 minute read | 5/30/18May 30, 2018
GOBankingRates: Best and Worst Places to Flip A Home

When it comes to flipping a house, the state you’re in can have a major impact on your profits.

There’s no magic formula out there to measure the exact impact or numbers, but anecdotal evidence and analyzing data findings gives us a good understanding of the potential returns we can expect.

Say, for example, you’re on the east coast in Maryland – data shows you might get more for your buck. On the other hand, flipping homes west of the Mississippi River could produce smaller returns since properties there tend to stay on the market for longer.

A study by GOBankingRates, reported by CNBC, analyzed data from real estate site Zillow and property data experts ATTOM showing that 10 states, in particular, aren’t ideal when it comes to flipping homes.

They based their findings in four key areas:

  • Median house listing price
  • Average number of days it takes to flip a house
  • Average gross profit on flipping
  • Average gross return on investment

On average, the best states can flip a home in 180 days, while the worst states typically take longer, around 203 days. Each day your property continues to sit on the market can take a chunk of your bottom line profits, which can be especially stressful if you’re borrowing money to buy the homes you flip.

So, before you jump into purchasing a home to flip, here are the 10 worst places to consider, according to GBR’s findings:

1. Mississippi

Average house listing price: $195,390

Average time to flip: 220 days

Average profit: $9,875

Average ROI: 4.3 percent

2. Hawaii

Average house listing price: $905,687

Average time to flip: 198 days

Average profit: $76,266

Average ROI: 27.7 percent

3. Montana

Average house listing price: $314,959

Average time to flip: 223 days

Average profit: $30,326

Average ROI: 12.9 percent

4. Wyoming

Average house listing price: $291,855

Average time to flip: 231 days

Average profit: $33,475

Average ROI: 18 percent

5. South Dakota

Average house listing price: $238,163

Average time to flip: 188 days

Average profit: $17,750

Average ROI: 26.1 percent

6. Idaho

Average house listing price: $349,000

Average time to flip: 182 days

Average profit: $26,606

Average ROI: 14.6 percent

7. Utah

Average house listing price: $440,946

Average time to flip: 194 days

Average profit: $49,295

Average ROI: 27.9 percent

8. New Mexico

Average house listing price: $254,798

Average time to flip: 203 days

Average profit: $43,863

Average ROI: 26.6 percent

9. North Dakota

Average house listing price: $226,863

Average time to flip: 208 days

Average profit: $54,934

Average ROI: 39.6 percent

10. Missouri

Average house listing price: $204,506

Average time to flip: 179 days

Average profit: $36,475

Average ROI: 47.3 percent

These lower ranking states earn their badge for a variety of reasons, including the average listing price, how long properties typically sit on the market, and the average amount of time it takes to complete the flip. GBR goes on to share details on how HOA’s can affect your flipped property and how extra fees, such as marketing, can cut into the bottom line profit.

“...the sooner you can get your money out of one flip, the sooner you can reinvest it in another house,” says GOBankingRates.

Ultimately, your profits will depend on your individual circumstances when flipping a home, so it’s best to do your research before trying to make money on turning about real estate. 


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