2016’s Best (Texas) Cities To Flip Houses

August 12, 2016

0 7 minutes read

Admit it: You’re an HGTV addict. Like those of us who’ve seen every episode of “Flip or Flop” — twice — you’re eager to gut your first house and turn a six-figure profit.

Not so fast there, El Moussa couple wannabe! Before you demo that pink-tiled ’80s kitchen, you need a stern reality check from the Property Brothers. Any experienced home flipper would caution you that transforming a real-estate beast into a bankable beauty is never as easy as it looks on TV.

In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet — and to the beam that’s keeping the roof from collapsing. Just because that dilapidated Victorian treasure only cost you the price of a new Prius doesn’t mean you’ll easily earn back your investment and pocket another $55,000 — the average gross flipping profit in 2015. While home flipping enjoys its highest rate since 2007, according to RealtyTrac, homeownership is near a half-century low, which means fewer potential buyers off the bat.

So choose the right market to list your masterpiece. At least there we can help. WalletHub’s number crunchers compared the 150 largest cities based on 19 key metrics to assist with finding the best markets for home flipping. Our metrics range from “median purchase price” to “average full home remodeling costs” to “housing-market health index.” Scroll down for the winners, expert advice and the full description of our methodology.

Map Courtesy of WalletHub

Overall Rank	City	Total Score	‘House-Flipping Market Potential’ Rank	‘Renovation & Remodeling Costs’ Rank	‘Quality of Life’ Rank
1	Sioux Falls, SD	73.38	66	8	8
2	Fort Wayne, IN	69.37	90	14	47
3	El Paso, TX	69.16	117	10	43
4	Oklahoma City, OK	69.00	10	13	58
5	Lincoln, NE	68.17	18	38	22
6	Lubbock, TX	67.88	19	34	39
7	Tampa, FL	67.82	7	18	62
8	New Orleans, LA	66.58	1	37	101
9	Boise, ID	65.59	80	11	29
10	Laredo, TX	65.23	58	44	46
11	Tulsa, OK	65.15	12	16	97
12	Corpus Christi, TX	64.88	149	53	32
13	Nashville, TN	64.10	28	15	83
14	Peoria, AZ	63.77	89	7	24
15	Cape Coral, FL	63.56	15	75	12
16	Gilbert, AZ	63.39	81	62	1
17	Des Moines, IA	63.29	59	3	76
18	Pembroke Pines, FL	63.24	13	61	44
19	Springfield, MO	63.19	122	9	116
20	Grand Rapids, MI	63.07	35	29	57
21	Colorado Springs, CO	62.65	49	48	28
22	Chandler, AZ	62.52	75	45	6
23	Knoxville, TN	62.44	30	4	127
24	Orlando, FL	62.28	39	21	87
25	Tallahassee, FL	62.19	36	30	95
26	Brownsville, TX	62.15	111	27	80
27	Wichita, KS	61.90	150	22	82
28	Lexington-Fayette, KY	61.80	16	67	56
29	St. Petersburg, FL	61.69	5	77	73
30	Virginia Beach, VA	61.53	26	72	31
31	Aurora, CO	61.51	57	59	16
32	Pittsburgh, PA	61.32	2	104	55
33	Denver, CO	61.30	70	49	17
34	Columbus, OH	61.07	43	52	49
35	Greensboro, NC	61.06	78	5	69
36	Louisville, KY	60.81	14	47	100
37	Overland Park, KS	60.68	92	73	5
38	Raleigh, NC	60.45	77	43	23
39	Chesapeake, VA	60.36	31	78	26
40	Jacksonville, FL	59.71	6	66	120
41	Omaha, NE	59.32	50	76	25
42	Shreveport, LA	58.74	145	6	140
43	Albuquerque, NM	58.54	137	28	113
44	Henderson, NV	58.49	105	36	33
45	Fort Lauderdale, FL	58.46	23	57	109
46	Arlington, TX	58.29	107	26	40
47	Charlotte, NC	58.21	54	71	42
48	Durham, NC	58.07	53	69	52
49	Jackson, MS	58.04	148	1	146
50	Amarillo, TX	58.04	46	95	30
51	Memphis, TN	57.96	4	40	148
52	Cincinnati, OH	57.83	9	81	111
52	Glendale, AZ	57.83	72	17	121
54	Huntsville, AL	57.77	64	32	92
55	Norfolk, VA	57.77	11	79	104
56	Montgomery, AL	57.77	84	20	138
57	Port St. Lucie, FL	57.70	34	84	53
58	Little Rock, AR	57.68	85	2	131
59	San Antonio, TX	57.40	147	24	54
60	Spokane, WA	56.94	44	46	118
61	Augusta, GA	56.91	33	35	147
62	Phoenix, AZ	56.85	74	23	110
63	Grand Prairie, TX	56.82	113	58	15
64	Mobile, AL	56.64	62	12	144
65	Newport News, VA	56.39	22	80	96
66	Austin, TX	56.30	139	65	19
67	Tempe, AZ	56.07	71	50	90
68	Plano, TX	55.92	108	99	4
69	Madison, WI	55.61	32	119	11
70	Fort Worth, TX	55.31	133	42	38
71	Philadelphia, PA	55.28	3	113	115
72	Winston-Salem, NC	55.17	83	55	79
73	Toledo, OH	55.11	47	68	107
74	Fayetteville, NC	54.79	144	33	114
75	Indianapolis, IN	54.75	123	39	103
76	Kansas City, MO	54.69	127	41	84
77	Las Vegas, NV	54.51	97	25	112
78	Seattle, WA	54.48	21	133	9
79	Hialeah, FL	54.36	24	83	117
80	Tucson, AZ	54.30	87	19	135
81	Akron, OH	54.28	60	51	124
82	Miami, FL	54.15	40	87	86
83	Mesa, AZ	54.03	68	74	74
84	Richmond, VA	53.57	37	97	72
85	Baltimore, MD	53.53	8	91	137
86	Scottsdale, AZ	53.32	73	106	10
87	Salt Lake City, UT	52.66	114	64	85
88	North Las Vegas, NV	52.63	102	31	126
89	Anchorage, AK	52.50	63	103	64
90	Irving, TX	52.27	101	107	13
91	Tacoma, WA	52.21	41	86	122
92	Columbus, GA	52.02	56	60	145
93	Baton Rouge, LA	51.52	140	54	108
94	St. Paul, MN	51.50	109	93	37
95	Reno, NV	51.49	116	56	105
96	Garland, TX	51.27	120	82	41
97	Rancho Cucamonga, CA	50.97	98	110	14
98	Washington, DC	50.93	55	98	91
99	Sacramento, CA	50.87	93	85	77
100	Irvine, CA	50.53	130	125	2
101	Houston, TX	50.09	135	88	61
102	Chattanooga, TN	49.93	17	89	143
103	Aurora, IL	49.77	48	129	35
104	Modesto, CA	49.36	95	63	132
105	Ontario, CA	49.27	88	100	66
106	Milwaukee, WI	49.13	51	101	123
107	Minneapolis, MN	48.97	99	120	34
108	Cleveland, OH	48.22	25	105	142
109	Riverside, CA	47.93	96	109	63
110	Rochester, NY	47.42	61	92	136
111	Santa Clarita, CA	47.36	128	112	36
112	Dallas, TX	47.20	110	111	59
113	Portland, OR	47.12	76	128	45
114	San Diego, CA	46.78	126	123	27
115	Vancouver, WA	46.72	82	115	68
116	Chicago, IL	46.38	38	130	102
117	Fontana, CA	46.33	100	121	51
118	Birmingham, AL	46.30	42	90	149
119	Buffalo, NY	45.89	69	102	129
120	Fresno, CA	45.60	79	94	133
121	Detroit, MI	44.95	94	70	150
121	Stockton, CA	44.95	67	108	130
123	Anaheim, CA	44.66	118	117	67
124	Honolulu, HI	44.31	45	135	88
125	Moreno Valley, CA	44.02	104	118	94
126	Garden Grove, CA	43.48	119	114	98
127	Huntington Beach, CA	43.43	115	138	21
128	Bakersfield, CA	43.40	91	132	78
129	Providence, RI	43.32	103	96	139
130	Chula Vista, CA	43.23	132	127	50
131	Long Beach, CA	43.01	121	122	81
132	St. Louis, MO	42.75	29	136	134
133	Atlanta, GA	42.38	20	140	125
134	Santa Ana, CA	41.78	131	124	89
135	Oceanside, CA	41.56	125	126	75
136	Glendale, CA	41.45	112	131	70
137	New York, NY	39.82	52	145	65
138	Santa Rosa, CA	39.64	146	137	18
139	Jersey City, NJ	39.62	86	143	48
140	San Bernardino, CA	39.22	106	116	141
141	Fremont, CA	38.69	138	147	3
142	San Jose, CA	38.13	141	146	7
143	Oxnard, CA	37.44	143	134	71
144	Los Angeles, CA	37.18	124	139	106
145	Yonkers, NY	36.44	27	148	119
146	Worcester, MA	35.44	142	141	93
147	Newark, NJ	34.54	65	142	128
148	Boston, MA	33.50	129	149	60
149	San Francisco, CA	32.81	136	150	20
150	Oakland, CA	31.76	134	144	99

Graphics Courtesy of WalletHub

Methodology

In order to identify the best and worst cities to flip homes, WalletHub’s analysts compared the 150 most populated cities across three key dimensions: 1) House-Flipping Market Potential, 2) Renovating & Remodeling Costs, and 3) Quality of Life.

We evaluated these categories using 19 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a scale from 0 to 100, with 100 representing the most favorable conditions for house flipping.

We then calculated overall scores for each city using the weighted average across all metrics, which we then used to construct our overall rankings.

With regard to our sample, please note that “city” refers to city proper and excludes surrounding metro areas.

House-Flipping Market Potential – Total Points: 35

Average Gross Return on Investment (ROI): Triple Weight (~11.67 Points)
Median Purchase Price: Full Weight (~3.89 Points)
Percentage of Home Flips: Full Weight (~3.89 Points)
Home Turnover Rate (2015 vs. 2014): Full Weight (~3.89 Points)
Note: This metric specifically measures the percentage of all homes sold in one year.
Housing-Market Health Index: Full Weight (~3.89 Points)
Average Sale-to-List Price Ratio: Full Weight (~3.89 Points)
Number of Real-Estate Agents per Capita: Full Weight (~3.89 Points)

Renovation & Remodeling Costs – Total Points: 35

Average Kitchen Remodeling Costs: Full Weight (~8.75 Points)
Average Bathroom Remodeling Costs: Full Weight (~8.75 Points)
Average Full Home Remodeling Costs: Full Weight (~8.75 Points)
Average Construction-Worker Salary: Full Weight (~8.75 Points)
Note: “Construction Worker” includes plumbers, electricians, carpenters, etc.

Quality of Life – Total Points: 30

Crime Rate: Full Weight (~3.75 Points)
GreatSchools City Score: Full Weight (~3.75 Points)
Percentage of Population with Walkable Park Access: Full Weight (~3.75 Points)
WalletHub “Best Cites for Families” Ranking: Full Weight (~3.75 Points)
Annual Job-Growth Rate: Full Weight (~3.75 Points)
Unemployment Rate: Full Weight (~3.75 Points)
Median Salary (Adjusted for Cost of Living): Full Weight (~3.75 Points)
WalletHub “Fastest Growing Economies” Ranking: Full Weight (~3.75 Points)

This article originally published by WalletHub.

Sources: Data used to create these rankings were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Renwood RealtyTrac, Zillow, Houzz, Federal Bureau of Investigation, GreatSchools.org, Trust for Public Land, Council for Community and Economic Research and WalletHub research.

August 12, 2016

0 7 minutes read