RealtyTrac took a look at housing markets with 50 or more flips in the second quarter of 2014 to assess which market was getting the best return on investment (ROI) for the flips. No. 1? Pittsburgh, PA, where on average, the flipper bought a home at a 51 percent discount (below the estimated market value, that is) and resold it at a 4 percent premium above the estimated market value. That’s a 106 percent ROI. Nice job, yins!
Not surprisingly, the worst market for flips is San Francisco, where the second-quarter 2014 average gross ROI was -9 percent. That hurts my stomach.
The overall average for all the markets in the analysis? An 8 percent discount then a 6 percent premium.
Though Philadelphia falls neither on the Best or Worst list, York-Hanover is also on the Best list, a few slots below Pittsburgh. See the lists below.
BEST MARKETS FOR FLIPPING
New Orleans-Metairie-Kenner, LA
Virginia Beach-Norfolk-Newport News, VA-NC
Deltona-Daytona Beach-Ormond Beach, FL
Atlanta-Sandy Springs-Marietta, GA
WORST MARKETS FOR FLIPPING
San Francisco-Oakland-Fremont, CA
Las Vegas-Paradise, NV
Houston-Sugar Land-Baytown, TX
Oxnard-Thousand Oaks-Ventura, CA
Fort Collins-Loveland, CO