A new study reveals South Carolina among the best states for house flippers, by calculating the most important expenses for flipping houses.
Arizona is the best state for house flippers, considering its remodeling prices, high sales rate, and a return of investment of 20%.
Colorado and Florida are both the second best states with Colorado offering less sales for more money, and Florida more sales for less money.
James McAllister, a spokesperson from Highland Cabinetry commented on the study: “Choosing the best state is based on preference. It’s important to realize that the average sales price is dependent on the investment house flippers make. This means that lower remodeling prices are good for house buyers and sellers.”
- Highland Cabinetry conducted research and revealed the best states for flipping houses. The remodeling prices (including the most expensive, the cheapest and average remodeling price ), sales rate and price was taken into account for each state. Then, these numbers were analyzed and put into a scoring system.
Here is a short summary.
State Most expensive price for remodeling Cheapest price for remodeling Average remodeling price House sales per capita Average house sale price Score Arizona $67,412 $60,975 $64,194 76.8 $429,787 72.0 Florida $62,377 $55,531 $58,954 73.6 $396,318 69.6 Colorado $66,771 $61,879 $64,325 58.5 $548,602 69.6 Hawaii $84,997 $79,934 $82,466 26.2 $856,327 69.0 Idaho $60,531 $59,584 $60,058 64.5 $449,952 68.3 North Carolina $63,059 $58,396 $60,728 75.7 $328,181 68.0 California $93,196 $73,567 $83,382 30.1 $782,695 67.8 South Carolina $63,132 $61,789 $62,461 77.3 $292,948 67.3 Washington $75,144 $68,962 $72,053 46.5 $588,986 66.8 Tennessee $62,913 $58,596 $60,755 72.5 $316,473 66.4 National Average $71,777 $63,806 $67,791 46.9 $360,643 58.7
The best state to flip houses in is Arizona, with a composite score of 72. Its affordable remodeling price of $64,194 is over $3000 less than the national average. Its sales rate of 76.8 per capita is among the top 2 states, and offers a good potential return on investment, with a sales price of around $429,000.
Florida and Colorado share second place, with a composite score of 69.6. Florida’s remodeling price is around $5,300 lower than Colorado. Colorado has a lower sales rate of 58.5, compared to Florida’s 73.6, but the average sale price of $548,602 in Colorado is way higher than Florida’s. There’s around a 120 thousand dollar difference between the two states.
Hawaii takes third place, with a composite score of 69. It has the highest average house sale price of $856,327 out of all the 50 states. Considering its average remodeling price of $82,466, there is a high potential for return on investment. It offers a sales rate of 26.2, but its high sale price compensates for the profit.
Idaho takes fourth place with a score of 68.3. The gap between the cheapest ($59,584) and most expensive ($60,531) remodeling is small, making it a great state for remodeling on a budget. It’s one of the few states that offers renovations below $60,000.
North Carolina takes the fifth spot, with a composite score of 68. It has a higher sales rate of 75.7, compared to Idaho’s 64.5, but a lower sales price ($328,181). It’s a great state for starters in the house flipping business, because it’s easier to find cheap houses to renovate. It offers substantial profits for beginners.
California’s taking the sixth place, with a score of 67.8. After Hawaii, California’s average sale price of $782,695 is the highest out of all 50 states. Renovation can sometimes pass the 90 thousand dollar mark, but considering its potential return on investment, it’s worth it to flip houses there.
South Carolina takes the seventh place. It has a composite score of 67.3. Out of all the 50 states, it has the highest sales rate of 77.3 per capita. It has an average sales price of $292,948, making it the only state on this list to have a price below $300 thousand. This state is also great for beginners, because they can find cheaper houses, repair them for a below average price ($62,461).
Washington is the eighth best place for flipping houses. Its sales rate is the closest one to the national average. It offers a high sales price of $588,986, and considering its repair prices ($72,053), it has a lot of potential profit for house flippers.
Tennessee takes the last place on this list, with a score of 66.4. It offers a high sales rate of 72,5, and a low renovation price of $60,755. When you couple that with a low sales price of $316,473, it becomes another good state for people new to house flipping. Tennessee has cheap renovation and cheap houses, at a high rate.
James McAllister, a spokesperson from Highland Cabinetry commented on the study: “Choosing the best state is based on preference. It’s important to realize that the average sales price is dependent on the investment house flippers make. This means that lower remodeling prices are good for house buyers and sellers.”
Methodology: Highland Cabinetry did research on all the 50 states, by finding out the most common expenses when it comes to house flipping. After getting a price range for remodeling, an average was calculated. Along with those numbers, the sales rate and the sales price was put in a formula to create a composite score system.