NASHVILLE, Tenn. (WKRN) — Looking to flip a house? One study claims those in the house flipping industry can get the most bang for their buck in these two Tennessee cities.
Home flippers are still major players in Tennessee’s real estate market. Nashville became a haven for flippers as the city’s real estate market took off, but one study says when it comes to flipping houses, Tennesseans can find the best return on investment in two cities in the northeastern part of the state.
The Motley Fool put out its top five list of markets with the best return on investment for home flippers in the first part of this year.
The Top 5 U.S. Markets for House Flipping in 2022:
- Scranton, Pennsylvania
- Kingsport-Bristol, Tennessee
- Reading, Pennsylvania
- Pittsburgh, Pennsylvania
- Johnson City, Tennessee
Financial Research Analyst Jack Caporal with Motley Fool said the two Tennessee cities meet the qualities of being a hot home flipping market.
“Generally, what you’re looking for in a hot home flipping market is a market that has a low medium home purchase price,” said Caporal, “Those metro areas do have a growing population and a growing home value there and growing home appreciation above the national average, which are also all occurring in the Kingsport area in the Johnson City area.”
Despite Kingsport and Johnson City being smaller populated areas, compared to Nashville, Caporal said that is one of the factors that is attracting flippers and becoming a national hub for house flipping.
“Part of that may have to do with the shift towards working from home and people looking for more affordable homes and willing to move away from kind of urban areas or economic hubs that existed before the pandemic,” said Caporal, “They have a little bit more freedom to choose where they want to live, and obviously, home prices skyrocketing over the past years.”
Although the two cities rank top of the list for a good return on investment rates, the study claims the total earning may be lower in smaller area cities.