Most Profitable Markets for Flipping HousesMost Profitable Markets for Flipping Houses

When the housing market crashed in 2008 many people blamed house flipping as the primary reason for the home market's demise. While flipping did play a role, it was later revealed that many of the banks that extended mortgages may well have dealt the crushing blow to the market.

Flipping houses is back and this time lending is different. The economic climate is different but profits are still the name of the game.

RealtyTrac selected what they feel are the top markets nationally that offer investors the highest return on their investment. The ratings are based on gross profit or the difference between the original purchase price and the sales price when the home is sold.

RealtyTrac noted, “To create the list, we looked at more than 600 metro areas nationwide where flips of single family homes occurred in 2012. We counted a flip as a situation where a sale of home occurred within six months or less of the previous sale of the same house. From the 600 metros we first narrowed it down to metros with at least 500 flips in 2012, and then to metros with at least 9 percent annual increase in home values between the first quarter of 2012 and the first quarter of 2012. From that universe of markets we selected the top 25 based on the gross profit as a percentage of the original purchase price.”

To find out more visit RealtyTrac's website at www.RealtyTrac.com.

25 Most Profitable Markets by Gross ProfitMetro Area 2012 SFR Flips Ann % Change Gross Prof it Gross Prof it % Ann Change

O rlando, FL 1,912 35% $103,701 $168,677 $64,976 63% 12%

Las Vegas, NV 4,341 -21% $133,198 $203,945 $70,747 53% 24%

Phoenix, AZ 10,589 6% $146,528 $210,290 $63,762 44% 33%

Tampa, FL 3,033 31% $79,538 $113,676 $34,138 43% 9%

M emphis, TN 1,331 32% $68,318 $96,870 $28,552 42% 13%

M iami, FL 4,299 36% $138,064 $189,291 $51,227 37% 16%

Lakeland, FL 660 73% $68,444 $93,715 $25,271 37% 14%

Nashville, TN 1,230 65% $108,851 $146,872 $38,021 35% 9%

Sarasota, FL 999 79% $116,783 $156,983 $40,200 34% 13%

Tucson, AZ 1,071 12% $117,338 $156,685 $39,347 34% 16%

San Diego, CA 2,853 36% $299,098 $384,812 $85,714 29% 14%

San Jose, CA 1,166 1% $422,526 $525,767 $103,241 24% 18%

Sacramento, CA 3,772 23% $172,442 $212,148 $39,706 23% 15%

San Francisco, CA 2,815 17% $354,712 $435,018 $80,306 23% 15%

574 45% $333,948 $404,374 $70,426 21% 11%

Inland Empire, CA 6,188 5% $175,756 $212,493 $36,737 21% 16%

M odesto, CA 882 -6% $125,601 $150,341 $24,740 20% 18%

Santa Rosa, CA 527 47% $285,344 $338,903 $53,559 19% 16%

Bakersf ield, CA 1,042 23% $114,357 $133,237 $18,880 17% 18%

Santa Rosa, CA 1,547 -20% $105,412 $121,748 $16,336 15% 22%

Seattle, WA 1,639 -9% $232,389 $266,916 $34,527 15% 12%

Stockton, CA 1,152 4% $167,393 $189,769 $22,376 13% 14%

Vallejo, CA 739 -9% $197,949 $223,711 $25,762 13% 13%

Denver, CO 3,842 7% $191,634 $210,375 $18,741 10% 10%

Detroit, M I 3,405 -3% $74,229 $80,391 $6,162 8% 18%

Avg Purch Price Avg Flipped Price

Ventura County, CA

Source: www.RealtyTrac.com

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