Best Cities for Fix-and-Flip Projects in 2024
There are several great investment strategies to explore, whether you’re a new or experienced investor. For instance, you could invest in rental properties, fix-and-flip projects, vacation rentals, or even new developments. Ultimately, knowing where to purchase a successful property is important regardless of which investment type you choose. Today, we’ll review some of the best cities for fix-and-flip projects in 2024. So, just keep reading to learn more about fix-and-flip real estate, where to invest, and some of the pros and cons of this investment type.
Contents of This Article:
- What Is Fix-and-Flip Real Estate?
- 5 Best Cities for Fix-and-Flip Projects in 2024
- Should You Take on a Fix-and-Flip Project in 2024?
- Find a Local Lender to Fund Your Next Project
What Is Fix-and-Flip Real Estate?
Whether you’re an investor or not, you’ve likely encountered the term “fixer-upper” while discussing aged or distressed properties. Fix-and-flip real estate involves buying properties that need significant repairs or renovations at a discounted price, revamping them, and flipping them for a quick profit.
That said, when it comes to selling properties “quickly” after flipping them, most investors can expect to sell within 12 months or less. However, if the property remains unsold beyond this timeframe, there’s usually flexibility among lenders to accommodate projects with longer timelines. Keeping your Maryland hard money lender up-to-date is key throughout your fix-and-flip process.
Successfully renovating and selling a fixer-upper depends on several factors. For one, it’s crucial to establish a realistic budget and stick to it diligently. Additionally, you’ll want to choose a property that allows for resale at market value with a profit margin. Finally, investors should develop a comprehensive renovation plan to stay within budget and complete repairs on time.
If you’re thinking about a fix-and-flip project for 2024, here are some of the best up-and-coming cities for a successful investment.
5 Best Cities for Fix-and-Flip Projects in 2024
Flipping homes can be a highly rewarding and profitable investment strategy. If you’re considering areas to invest in fix-and-flip projects in 2024, here are five cities worth looking into.
- Chicago, IL
- Cleveland, OH
- Fayetteville, NC
- Jacksonville, FL
- Philadelphia, PA
One of the best cities for fix-and-flip projects is Chicago. With a median home value of around $285,000, Chicago offers various real estate options, catering to varying budgets and preferences.
With homes lasting around 49 days on the market, inventory goes relatively fast, suggesting that demand is still intact. In November 2023, there were 9,369 homes for sale, which isn’t enough to meet the demand. However, the supply and demand indicators lean heavily in favor of local investors, meaning flippers should be able to take on projects faster and sell for higher profits.
Cleveland is another city for investors to look into in 2024. With a growing reputation for healthcare and research industries, Cleveland has spurred demand for housing. An influx of students and professionals attracted by the growth of healthcare jobs and educational opportunities contributes to an increased need for housing.
That said, the increased demand has definitely outnumbered the 2,963 available homes for sale in November 2023. Additionally, real estate is a hot commodity in Cleveland, with an affordable median home value of $98,000. As a result, homes are only on the market for around 49 days, which should give investors peace of mind that their fix-and-flip projects will see plenty of demand.
Fayetteville, North Carolina, has positioned itself as a prime destination for house flipping in 2024. With a median home value of around $200,000, the city provides a more affordable housing landscape, especially compared to its popular neighboring city, Raleigh. In turn, Fayetteville has seen more demand from individuals looking to escape higher home values in Raleigh’s real estate market.
Growing demand in this area has led to homes lasting fewer days on the market. With an average of 41 days on the market, homes in Fayetteville sell fairly quickly, highlighting demand that can help local investors. In turn, this indicates an excellent environment for house flippers to buy, renovate, and sell homes, maximizing profits in a shorter time frame.
Another profitable city for house flipping in 2024 is Jacksonville, Florida. With a median home value of around $295,000, the city offers a wide range of properties at competitive prices. This makes it an attractive market for fix-and-flip investors looking for favorable pricing.
The average number of days homes spend on the market is around 50, which suggests that properties are being sold quickly. This means investors have a greater chance of faster investment returns. Jacksonville’s low unemployment rate and relatively high median household income also reflect a stable economic environment. This can drive demand for real estate transactions, increasing the likelihood of selling renovated properties.
Philadelphia is becoming another excellent place to invest in fix-and-flip properties. The median home value in this popular city is around $214,000, representing an attractive entry point for investors. Additionally, homes sell relatively quickly, with an average of 43 days on the market. This fast-paced environment allows flippers to acquire, renovate, and resell properties rather quickly.
Additionally, another factor that makes Philadelphia a notable place to invest is the foreclosure rate of 0.75, which is quite high. However, this higher rate implies a significant amount of homes filtering through the market, presenting more opportunities for investors to secure properties at prices below market value.
Should You Take on a Fix-and-Flip Project in 2024?
Whether you’re an experienced investor or new to the industry, diving into a fix-and-flip project has its advantages and disadvantages. If you’re wondering whether or not to take on a new investment project, here are some of the pros and cons to consider.
Pros of Fix-and-Flip Projects
- Good Start to Real Estate- While getting into the swing of things takes some time, fixing and flipping properties is a great way to dive into real estate investing. It can be an extremely rewarding investment choice if you have the time and skills to put towards a fixer-upper.
- Potential to Profit Quickly- With other real estate investments, like rental properties, you may not see significant profits for quite some time. However, when you fix and flip a property, you can sell it and see significant profits within a few months instead of years.
- Increased Flexibility- Fixing and flipping real estate offers more flexibility than other investment choices. Ultimately, it all depends on your budget, goals, project timeline, and priorities. Additionally, you can be involved as little or as much as you’d like.
Cons of Fix-and-Flip Projects
- Potential to Go Over Budget- The success of fix-and-flip projects relies heavily on your budget and how well you stick to it. It’s very easy to go over budget or miscalculate how much you may spend. Unfortunately, you may be cutting into profits if you go over budget.
- Fewer Tax Advantages- Real estate generally offers great tax advantages. However, fix-and-flip properties don’t have as many unless they’re turned into rental properties.
- Time-Consuming and Labor-Intensive- Purchasing fix-and-flip real estate is extremely time-consuming and labor-intensive. If you plan on fixing up the place yourself, you’ll need to set aside a ton of time to be present at the property. Even if you hire independent contractors, you’ll still need to supervise and ensure you stay under budget.
Find a Local Lender to Fund Your Next Project
If you’re looking at the top 5 cities for fix-and-flip projects in 2024, you’ll want to gather all the details you need to make your investment successful. This includes your budget for renovations, who will do the work, how long it’ll take, your profit potential, and how you’ll finance your project.
Hard money loans are an excellent choice for fix-and-flip projects. So, if you’re looking for a fast and easy way to finance your next investment property, look no further than Maryland Hard Money Lenders. Our team of experienced lending professionals can help you secure a loan quickly and efficiently. Fill out our initial loan application today or contact us to learn more about our lending process!