The United States is a big place.
And while it is a land of opportunity, for house flippers there are some areas where the chances of success are greater. When your resources are limited, it pays to deploy them where the potential returns are highest.
Exactly where would that be, you may ask?
Take a look at this really informative study put together by the folks at GoBankingRates.com in June 2018. They have outlined the 10 best and 10 worst states in which to flip a house, based on average home price, how long it takes to flip a home, and average profit.
The Losers
10. Missouri
9. North Dakota
8. New Mexico
7. Utah
6. Idaho
5. South Dakota
4. Wyoming
3. Montana
2. Hawaii
1. Mississippi
So what makes Mississippi the worst state in which to flip a house? Although the median home list price is an affordable $195,390, the state has the lowest average gross profit ($9,875) and poorest average return on investment (4.3%) of any state. We should also note that it also takes a whopping 220 days to turn over a house in Mississippi, on average. Tying up your resources for that amount of time is not optimal, by any means. We’ve said it before, and we’ll say it again—time is money.
The Winners
10. Kentucky
9. Illinois
8. Florida
7. Virginia
6. Maryland
5. Colorado
4. Louisiana
3. New Jersey
2. Pennsylvania
1. Tennessee
As you can see, Tennessee is the big winner with a median home price of $268,692 and a handsome average profit of $57,600. Even more impressive is the whopping average ROI of 132.7%. Wow.
Although NavCap is not currently operating in Tennessee, maybe we should be! But we are gratified to see that two of our major territories—Maryland and Virginia—made it into the winner’s circle. According to GoBankingRates, Maryland’s average gross profit of $109,616 coupled with an average ROI of 109.6% make it one of the best places to flip a house in the nation. Ditto for Virginia with an average gross profit of $91,783 and average ROI of 99.3%.
Where ever you decide to launch your next fix and flip project, let NavCap guide you through the process. Contact us at 443.603.0193 or via email at info@gonavcap.com to find out more about our customer-centric lending programs.