Fix-and-Flip Market Update

Navigating the current residential real estate market requires real estate investors to think outside the box and maintain an updated understanding of emergent metric trends and behaviors in order to optimize their return on investment (ROI). While there is still plenty of opportunities to generate a healthy, sustainable cash flow across the country, it is becoming increasingly challenging for investors to achieve the same results over the past year or so. Increasing listing prices coupled with reduced market inventories in a majority of major markets has presented a unique challenge to real estate professionals focused on the fix-and-flip space.

The experienced team of experts at Express Capital Financing (ECF) have been assisting real estate investors across the country achieve their investment goals, regardless of fluctuating real estate market factors. We have crunched the numbers to provide you with the following insights on the fix-and-flip market so that you can make confident, informed investment decisions. Here is a closer look at some of the top-performing fix-and-flip markets as well as an overview of this niche investment sector.

Fix-and-Flip Market Overview

The average profit derived from fix-and-flip investment projects decreased by approximately 10% over the last year, with investors netting a median aggregate profit of $65,000 per flip compared to the $72,000 ROI they were accustomed to seeing in 2021. This statistic underscores the importance of investors doing their due diligence and thoroughly analyzing a project before committing.

Top-Performing Fix-and-Flip Markets

To help get your fix-and-flip search off to a good start, the ECF team has compiled the following list of the cities where real estate investors can expect to generate optimal returns.

1. Buffalo, New York

The overall demand for housing markets in the greater Buffalo region has increased astronomically over the past few months, prompting real estate investors to snap up available properties and convert them into income-producing investment assets. The city’s population is expanding at a rapid rate, with census data indicating a nearly 10% increase over the past year alone. The average home value for Buffalo properties spiked 17% since January 2021, with the median price currently sitting around $205,000. This rapid appreciation is great news for fix-and-flip investors, who would do well to keep Buffalo on their radar when searching for their next investment project—there is still plenty of untapped potential in upstate New York!

1. Raleigh, North Carolina

The Raleigh real estate market has long been a top-producing destination for real estate investors—even prior to Apple revealing that it planned to build its East Coast headquarters in the vibrant Research Triangle location which is expected to produce more than 3,000 employment openings in the next few years. The average single-family home value has increased sharply in the past year, while the local housing inventory has fallen by a staggering 73% since 2021. That means affordable housing options are in high demand, making this an ideal area for fix-and-flip investors to acquire properties, complete needed renovations and sell them for ideal profit margins. With the Raleigh metro area forecasted to add 269,000 new residents by the end of the current decade, there will be plenty of opportunities for the foreseeable future for investors to get their foot in the door in this booming fix-and-flip market.

1. Detroit, Michigan

The average home value in metropolitan Detroit has skyrocketed by more than 11% since 2020—increasing from $226,000 to over $254,000. There has been a corresponding uptick in demand for single-family residential properties, as in-demand retailers such as Whole Foods and major tech companies including Microsoft and Pinterest have all opened up corporate headquarters in this storied urban center. The expected influx of workers and new residents will all need accommodations, making Detroit the ideal spot for fix-and-flip investors to concentrate their search for investment opportunities.

A Lending Partner You Can Trust

Whether you’re a small business, medium firm, or large corporation, we can help you get the capital that you need. Our services include bridge loans, business acquisition financing, hard money loans, and commercial real estate loans. We even offer unsecured business lines of credit for those with more nontraditional financing needs. Contact us today to learn more about how we can make your fix-and-flip investment dreams a reality!