The average gross profit from a house flip in 2015 was $55,000. And as tempting as that amount of cash sounds, where investors sink their money matters almost as much as experience and skill.
WalletHub crunched the numbers to find the best cities to flip houses, and four Texas locales make the list. El Paso comes in third, followed by Lubbock (No. 6), Laredo (No. 10), and Corpus Christi (No. 12).
The personal finance site looked at things such as the market's overall house-flipping potential (average gross return on investment, median purchase price, housing-market health index, and more); renovation and remodeling costs (a new kitchen will cost how much?); and the area's quality of life (crime rate, median salary, school scores, and the like).
El Paso ranks 10th for the lowest renovation and remodeling costs, while Lubbock surprises with the greatest flipping potential in the Lone Star State.
It takes a while for Texas' biggest markets to show up on the list. Arlington is No. 46, San Antonio is No. 59, Austin is No. 66, and Fort Worth is No. 70. Houston lands all the way at No. 101. And Dallas? Well, it's the lowest-ranking Texas city, at No. 112.
While studying the metrics used to determine the rankings, a few interesting stats popped up. Austin has one of the lowest percentages of home flips, along with Indianapolis, Indiana, and Pittsburgh, Pennsylvania. Plano, meanwhile, has the highest housing-market health index in the country, which doesn't come as a surprise. Despite that honor, it doesn't climb higher than No. 68 on the overall list.
If you want to try your hand at flipping homes outside Texas, Sioux Falls, South Dakota, and Fort Wayne, Indiana, are the best bets.