If you’re among the millions of HGTV viewers who’ve seen an episode of “Flip or Flop,” you’ve probably thought about the thrill of gutting a house and turning a five- or six-figure profit.
WalletHub’s analysts compared the 150 largest U.S. cities across 22 key indicators of market potential, cost and quality of life. Their data set ranges from median purchase price to average full home remodeling costs to housing-market health index.
“But before you demo that pink-tiled ’80s kitchen, you need a stern reality check from the Property Brothers,” WalletHub’s release stated. “Any experienced home flipper would caution you that transforming a real-estate beast into a bankable beauty is never as easy as it looks on TV.”
“In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet — and to the beam that’s keeping the roof from collapsing.”
Breathing new life into a low-cost property won’t necessarily return a buyer’s full investment and allow them to pocket another $62,624, the average gross flipping profit in 2016.
While home flipping enjoys its highest rate since 2007, according to RealtyTrac, the current homeownership rate is near the previous half-century low of 62.9 percent, which may translate to fewer potential buyers off the bat, depending on the location of the revamped property.
Flipping a House in El Paso (1=Best; 75=Avg.)
- 48th – Real-Estate Agents per Capita
- 40th – Avg. Kitchen Remodeling Costs
- 3rd – Avg. Bathroom Remodeling Costs
- 77th – Avg. Full Home Remodeling Costs
- 80th – % of Population with Walkable Park Access
To view WalletHub’s methodology, click HERE.