Market Watch: Top Places to Flip in 2014

New and lucrative flipping opportunities are are popping up all over the country this year year. According to RealtyTrac home sales for December 2013 were up 8% compared with the previous month, and down 16%compared with a year ago. The median sales price of a non-distressed home (those that are usually not foreclosed and/or flipped) was $175,000. The median sales price of a foreclosure home was $112,500. That’s 36% lower than non-distressed home sales, and a wide margin for those of us investing in real estate to make a profit. But what are the top places to flip in 2014?

There is a lot of data out there about which market is best and what city or state to investing in real estate in. Here we comprise some lists and let you decide based on the facts. While most would assume that the Sand States would be the prime places for flipping, 6 out of the top 10 markets of USA Today’s list are actually in the northeast region of the US. This in part could be the after effects of Super Storm Sandy at the end of 2012. Notably, the second-most lucrative housing market to flip last year was Ocean City, New Jersey, where several hundred homes were flipped for an average profit of more than $158,000.

According to USA Today here are the top 10 markets that are “flipper friendly”

1. New York-Northern New Jersey-Long Island, N.Y., N.J., Pa.

• Avg. gross profit: $118,376

2. Lake Havasu City-Kingman, Ariz.

• Avg. gross profit: $87,513

3. Oxnard-Thousand Oaks-Ventura, Calif.

• Avg. gross profit: $78,106

4. Washington-Arlington-Alexandria, D.C., Va., Md., W. Va.

• Avg. gross profit: $72,297

5. Omaha-Council Bluffs, Neb.-Iowa

• Avg. gross profit: $71,384

6. Raleigh, N.C.

• Avg. gross profit: $69,253

7. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

• Avg. gross profit: $69,212

8. Richmond, Va.

• Avg. gross profit: $65,092
• Avg. days to flip: 109

9. San Jose-Sunnyvale-Santa Clara, Calif.

• Avg. gross profit: $61,758

10. Seattle-Tacoma-Bellevue, Wash.

• Avg. gross profit: $58,930

Maybe you are looking for a broader approach for flipping. A combination of high gross profit and high foreclosure rates are what you are looking for. Here is a list after data was compiled last year, of the best states to invest in real estate according to 24/7 Wall Street.

1. Massachusetts

• 2013 avg. gross profit: $103,384

2. California

•  2013 avg. gross profit: $99,999

3. Maryland

•  2013 avg. gross profit: $98,122

4. New Jersey

• 2013 avg. gross profit: $92,744

5. New York

•  2013 avg. gross profit: $91,970

6. Washington

•  2013 avg. gross profit: $89,525

As mentioned before, there is a lot of info out there. Do yourself a favor and make sure you are looking in the right places. Be sure to educate yourself of the flipping phenomenon to ensure you are making the right decisions for your future. Get the investor mind set and you will be well on your way to having a successful REI business.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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Erik Hitzelberger has been Real Estate Investor since 2007. While learning the ropes in the market down-cycle, he now teaches others how to use his systems and leverage other people’s expertise to achieve their own goals.

Erik Hitzelberger – who has written 194 posts on Part Time REI.

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