Most promising city/states for flips in 2025?

[Brandon Stiles]

I'm currently located in Northwest Arkansas (Walmart HQ) and just closed on my first flip a few weeks ago. Over the past 4 months I sent out about 3,000 letters to a semi-targeted list (2% reponse rate), made 1,000 cold calls (25% response rate), had multiple investor friendly realtors looking for oportunities, and of course checked zillow/realtor daily. I ended up getting lucky and finding this one on zillow.

The biggest problem I'm seeing is that everyone in my area wants close to retail price for fixer uppers - and people are paying it. I have a mentor whos been investing in the area for 10+ years and he's only found 2 flips this year. My goal is to scale my flipping business to 10+ homes a year and I'm starting to wonder how viable that is in my area. I've been tossing around the idea of relocating (not solely for real estate but it is a big factor) and I'm wondering what areas have the best potential for flips over the next few years. Bigger price gap between fixer uppers and retail... I know Florida, Texas, and North Carolina are seeing huge growth but I don't really see myself moving to any of those states mainly because of the hurricanes/floods/and the heat in Texas.

I'm assuming the problem I'm having is a result of the high insterest rates, housing shortage and affordability, but I'm wondering if it's like this everywhere right now?

Any thoughts?