10 Best Cities for Flipping Houses and Wholesaling Real Estate (2023)

Are you looking to maximize your profitsby targeting your efforts oncities withspecific attributes that make themthebest cities for flipping housesandwholesaling?We decided to make it easyon you and conduct thorough research in the housing market to identify thebest cities to flip housesas well as thebest cities for wholesaling real estate.

Using a 3-point rating system, DealMachine looked atthetop 50 cities by populationand evaluated them based onmultiple factors for both house flipping and wholesaling. Our goal wasto determine the best citiesfor house flippers and wholesalers to targetusing a mixture of proprietary DealMachine and public data.

First, we’ll review the10best cities to flip housesand then share our results for the10best cities for wholesaling.

TheBest Cities for Flipping Houses

To determine thebest places to flip houses, we looked atseveralcriteriathat made these top 10 cities the most advantageous for real estate investors.Wescoredeach cityon a 3-point scale for the same7factors:

• Population Growth in 2021
• Home Sale Price
• Average Home Age
• Median Household Income
• Average Days on Market
• Highest Inbound Cities
• Listing Changes Year Over Year

Now, let’s get to thegood part so you canpair this information with powerfulhouse flipping softwareandland your next deal!

1. Seattle, Washington

Coming in at number 1 on our list is Seattle, Washington.Strongpopulation growth,shortened time on the market,anda higher than averagemedian household incomeofover $92Kall point to continued flipping success.

Seattle scoring:

• Population Growth in 2021 - 3 points
• Home Sale Price - 3 points
• Average Home Age - 2 points
• Median Household Income - 3 points
• Average Days on Market - 3 points
• Highest Inbound Cities - 3 points
• Listing Changes Year Over Year - 2 points

2. Tampa, Florida

Ranked byUnited Van Linesas one of themost popular cities moved to in 2020, Tampa has an inbound rateof 57% which meansthenumber of buyersin this marketis impressive.Another positive sign for home flippers isthe low number of days homes spend on the marketin this city. Tampa homes average only7 dayson the sales marketbefore they are sold!

Tampa scoring:

• Population Growth in 2021 - 3 points
• Home Sale Price - 3 points
• Average Home Age - 2 points
• Median Household Income - 3 points
• Average Days on Market - 3 points
• Highest Inbound Cities - 3 points
• Listing Changes Year Over Year - 2 points

3. Phoenix, Arizona

With all this metropolis has to offer, it’s not surprising to find Phoenix landing in the top threebest cities for flipping houses.The population has been on a steady inclinehaving risennearly20%over the last decadeand is forecasted to rise another1.92%in 2021. The influx of homebuyers paired withareasonableaverage home pricemakesthis market healthy for house flipping.

Phoenix scoring:

• Population Growth in 2021 - 3 points
• Home Sale Price - 2 points
• Average Home Age - 2 points
• Median Household Income - 2 points
• Average Days on Market - 1 point
• Highest Inbound Cities - 3 points
• Listing Changes Year Over Year - 2 points

4. Denver, Colorado

House flippers looking forstrong profitswould bekeen to tap the potentialof consistently rising home valuesin Denver.Homes spend an average of only5 days on the marketin theMileHighCityand the city’s popularity continues to drivea forecasted1.17%population growthrate, whichbenefits home flipping.

Denver scoring:

• Population Growth in 2021 - 3 points
• Home Sale Price - 2 points
• Average Home Age - 3 points
• Median Household Income - 2 points
• Average Days on Market - 3 point
• Highest Inbound Cities - 0 points
• Listing Changes Year Over Year - 1 point

5. San Diego, California

Offering a high-profitpotential, San Diego’s average home sale price reaches an impressive$764,000.The median household income ranks above average at nearly $80K andthere is noshortage of buyers in this market.

San Diego scoring:

• Population Growth in 2021 - 2 points
• Home Sale Price - 3 points
• Average Home Age - 2 points
• Median Household Income - 3 points
• Average Days on Market - 2 point
• Highest Inbound Cities - 0 points
• Listing Changes Year Over Year - 2 points

6. Charlotte, North Carolina

Scoring high for population growthwith aninbound percentage of 63%,Charlotte’saverage home sale price is $340,000, which makes it an appealing market for house flippers.

Charlotte scoring:

• Population Growth in 2021 - 3 points
• Home Sale Price - 2 points
• Average Home Age - 1 point
• Median Household Income - 2 points
• Average Days on Market - 1 point
• Highest Inbound Cities - 3 points
• Listing Changes Year Over Year - 2 points

7. Jacksonville, Florida

Often overlookedby morewell-knownFlorida cities like Miami and Orlando, Jacksonvilleshows steadypopulation growthat a rate of1.66%and hasearned its reputation as aFortune 500hub.

Jacksonville scoring:

• Population Growth in 2021 - 3 points
• Home Sale Price - 2 points
• Average Home Age - 1 point
• Median Household Income - 2 points
• Average Days on Market - 1 point
• Highest Inbound Cities - 3 points
• Listing Changes Year Over Year - 2 points

8. San Jose, California

Another top-scoring market forhouse flippers is the“Capital of Silicon Valley”, San Jose.With a highmedian household incomeandquick to appreciate home prices, house flippers can make a considerable sum of money here.

San Jose scoring:

• Population Growth in 2021 - 1 point
• Home Sale Price - 3 points
• Average Home Age - 2 points
• Median Household Income - 3 points
• Average Days on Market - 2 points
• Highest Inbound Cities - 0 points
• Listing Changes Year Over Year - 2 points

9. Sacramento, California

California’s state capital of Sacramento scored especially well on average days on the market, which bodes well for house flippers.The average home only spends7 dayson this hot real estate market.

Sacramento scoring:

• Population Growth in 2021 - 2 points
• Home Sale Price - 2 points
• Average Home Age - 2 points
• Median Household Income - 2 points
• Average Days on Market - 3 points
• Highest Inbound Cities - 0 points
• Listing Changes Year Over Year - 2 points

10. Los Angeles, California

Known as the house flipping capital of California, Los Angelesachieves anaverage profit in the sixfiguresfor house flippers.Consistent population growth paired with increasing home sales year-over-year continuesto keep LA on the listofbest places to flip houses.

Los Angeles scoring:

• Population Growth in 2021 - 1 point
• Home Sale Price - 3 points
• Average Home Age - 2 points
• Median Household Income - 2 points
• Average Days on Market - 3 points
• Highest Inbound Cities - 0 points
• Listing Changes Year Over Year - 2 points

The Best Cities for Wholesalers

To determine thebest markets to wholesale real estate, we looked atspecificcriterianeeded for successful wholesaling.The attributes thatmake these 10 cities the most advantageous for real estatewholesalersareunique fromwhatdeterminesthebest cities for flipping houses.By targeting these locations and using effectivereal estate wholesaling software,profitable wholesaledeals can be made.We evaluatedandscored each city on a 3-point scale for the same3factors:

• Market Value
• Home Age
• Number of Distressed Homes

1. Indianapolis, Indiana

Indianapolislanded the number 1spot on our list for best cities for real estate wholesalers.Withjust under20,000 distressed homes listed in the DealMachine databaseand an average home age of49 years,there is tremendouspotential for profitable wholesaling deals.

Indianapolis scoring:

• Market Value - 2 points
• Home Age - 3 points
• Number of Distressed Homes - 3 points

2. Saint Louis, Missouri

Ranking a close second isthe city commonly referred to as the “Gateway to the West”,Saint Louis, Missouri.Theaverage home age in Saint Louis is 52and there are close to 11,000 distressed homes available in our database alone.Another appealing aspect for wholesalers is that theaveragesaleprice is $219,000,which means wholesalers can get into the market fora reasonable investment.

Saint Louis scoring:

• Market Value - 2 points
• Home Age - 3 points
• Number of Distressed Homes - 3 points

3. Kansas City, Missouri

Another top location for wholesaling homes is Kansas City.While the average home age in Kansas City is also52 yearsand there aremore distressedhomes listed than in Saint Louis, the average sale price is a bit higher at$242,000.

Kansas City scoring:

• Market Value - 2 points
• Home Age - 3 points
• Number of Distressed Homes - 3 points

4. Houston, Texas

Houston makes the list of homes withthe right buying criteria for wholesalers. The real estate marketoffers awealth of distressed homes with over 30,000 available in our database. Theaverage age isclose toideal at 36,andwith such a high pool ofdistressed homes,youshouldfind you have plenty of homeowners willing tosell at a feasible price.

Houston scoring:

• Market Value - 2 points
• Home Age - 2 points
• Number of Distressed Homes - 3 points

5. Fort Worth, Texas

The high number of distressed homes found in DealMachine for the Fort Worth area makes this one of the best markets to wholesale real estate in for wholesalers looking to find off-market potential. The average market sale price is $302Kand the average home age is only slightly younger at34 years old.

Fort Worth scoring:

• Market Value - 2 points
• Home Age - 2 points
• Number of Distressed Homes - 3 points

6. Dallas, Texas

You maynoticea trend as this is the third city in Texas already on this list. Spoiler alert: there are a total of 5 cities from Texas that qualifyforthe top 10 list for wholesalers.All have highly desirable features for wholesalers, and Dallas is no exception. With anaverage home age of 41andover13,000 distressed homes identified in DealMachine,wholesalers have a wealth of opportunity in Dallas.

Dallas scoring:

• Market Value - 1 point
• Home Age - 3 points
• Number of Distressed Homes - 3 points

7. Tucson, Arizona

Scoring high for its number of distressed homes, Tucson also offers a great entry price for home buyerswith anaverage sale price of $302K. This desert cityattracts people from around the worldand was designated asthefirstUNESCO City of Gastronomyin the United States.

Tucson scoring:

• Market Value - 2 points
• Home Age - 2 points
• Number of Distressed Homes - 3 points

8. Las Vegas, Nevada

The housing market in Las Vegas has been undergoinganextreme transformation over the last few years withan influx ofnewresidents from California.The ample supply of distressed homesmakesit a greattarget for wholesaling.

Las Vegas scoring:

• Market Value - 1 point
• Home Age - 2 points
• Number of Distressed Homes - 3 points

9. El Paso, Texas

The vibrantborder town of El Pasohas a modestmedian sale price of $203K, making it accessible for even beginner wholesalers. The highly encouragingyear-over-year 12.8% growthin average sale price meansthere is money to be made.

El Paso scoring:

• Market Value - 2 points
• Home Age - 2 points
• Number of Distressed Homes - 2 points

10. Austin, Texas

Austin iswellknown for its music and nightlife,whichare some of thefactors that continue to draw people to the city andencourage them to stay.Austin makes the top 10 list because of its high number of distressed homesjust waiting to betargeted by wholesalers.

Austin scoring:

• Market Value - 1 point
• Home Age - 2 points
• Number of Distressed Homes - 3 points

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A targeted approach to house flipping and wholesaling is the best way to yield desirable and profitable results.DealMachine makes it easy for you tofind a propertythat meets your criteriaandsuccessfully close more deals.Our powerful software stack delivers all the tools you needin one easy-to-use platform. Looking to scale your businessthesmarter way? Sign up foryourfree trialof DealMachine today!

Methodology

Here, we’ll review the methodology and data sources DealMachine used to determine the best places for flipping houses and wholesaling.

Best Cities to Flip Houses

To determine thebest cities for flipping houses, DealMachine looked at the top 50 cities by populationand cross-checked with the top-selling metros of 2021.The top ten cities were thennarrowed downbased on the following criteria:

Population Growth in 2021

Using data fromtheWorld Population Review, we discerned the population growth percentages for thecities in 2021.Cities earned more points for higher growth rates.

Home Sale Prices

Average home sale prices for each city werecollectedusing data fromRedfin. The higher the home sale price, the more points the city was given.

Average Home Age

Using datacollected byHouse Method, we measured the average home age in each city. Because older homes are more ideal for flipping, cities with higher average home ages scored better than those with lower average home ages.

MedianHouseholdIncome

Median household income statistics were sourced fromtheUnited States Census Bureau.Higher household incomes were given more points when scoringwhile lower household incomes received fewer points. Thereason being that higher median incomes result in a larger population of potential homeowners.

Average Days on Market

To understand how hot the housing market is in each location, cities were given more points for markets thatsell homes in one week or less and fewer points for locations with longer on-market times.We collected this pertinent data fromRedfin.

Highest Inbound Cities

Cities with a higher rate of inbound activity according toUnited Van Lineswerescored higherthan those with lower percentages.

Listing Changes Year Over Year

Using data fromRealtor, we assigned points to cities based on percentages of listing changes. Locations with higher listing changes received more points than cities withlower listing changes.

Best Cities for Wholesaling

When determining thebest cities for wholesalinghouses,we started by looking atthe topcitieswith the highest number of cashtransactionsinListSource(no less than 350 percity). This resulted in a list of21 citieswhich were then narrowed down basedon how they ranked using the following criteria:

Market Value

Average market prices for each city were collectedusing data fromRedfin. The higher the market prices, the lower the city scored because the best markets for wholesalers are those withlower home prices.

Home Age

The ideal home age for wholesaling is 40 years old.Using data fromHouse Method, we scored each city based on its average home age with home averages 40 years and up receiving more points than cities with lower home age averages.

Numberof Distressed Homes

Using proprietary data fromDealMachine, we gave pointsto the top citiesforthe number ofdistressedhomes available. Cities witha higher number ofdistressed properties receivedmore points thanthose with fewer.