The housing market has rebounded nicely since the crash in 2008. Some markets, like Las Vegas, New York City, and Los Angeles, are demanding ridiculously expensive costs for homes. What does this mean to someone who wants to flip a house and make a profit? Well, flippers need to avoid these areas as the potential profit margin is minuscule. So where does someone go if they want to make money in the housing market? Head down to the southern states for real money earning potential.
The Profitable Pastures of The South
Shockingly, Louisiana is one of the best states for house flippers to consider. There are many deals throughout this state, and the returns are over 100 percent. Housing prices are soaring, but there is still plenty of money to be made. Other regions that seem to have the best potential to make dough include Ohio, Pennsylvania, Alabama, Maryland, Missouri, and Tennessee. Flippers are looking South of the Mason-Dixon line and to the Rust Belt for their riches.
What Happened To House Flipping Hot Spots?
Atlanta was once a hopping market for flippers, and there were even a few television shows about couples making their living in this region. However, investors have been priced out of this market. Now, those who want to look to Alabama should consider Birmingham if they want to stay close to home.
California and New York have always had one of the highest priced real estate markets in the country. So why are the flippers moving out of this area and onto greener pastures? A study done by the ATTOM marketing analyst team found that the average flipper was making around $65,000 from homes in California and New York. Though it’s a bit of a drop from the last quarter, it’s still not that impressive.
Another thing to consider is that storms and other economic happenstances alter the prices of materials, which untimely cut into the profit margin. Even the worst homes are selling quickly and with little potential for profit.
Making Smart Investments
Though purchasing a home at auction often requires that an investor buys sight unseen, it’s better to do some homework before buying any home. There is money to be made in the real estate market, but it requires a savvy buyer who knows what a home needs before they put in a bid. Often, it means losing a house because the gamble is too big. However, there are good deals out there and money to be made.