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Blog Expert Investors Fix and Flip Real Estate 101

Unlocking Real Estate Wealth: Finding the Highest ROI States for Fix and Flips

Flipping houses has become a popular investment option for real estate investors over the past decade. Attom Data shows that the number of homes flipped yearly continues to near all-time highs as a percentage of all home sales.

In 2022, a record-setting 437,000 homes were flipped – accounting for 8.4% of all sales. Fix and flip total sales dipped in 2023 with 308,922 single-family homes and condos flipped but flips still accounted for a whopping 8.1% of all home sales.

As popular as it is, the average real estate ROI for flips has fallen slightly in the post-COVID era, in largely due to increasing home prices. In 2023, the average ROI for a flip was 27.5%, and the average gross profit was $66,000. Comparatively, the average flip ROI was 41.9% in 2020, and the average gross profit was $66,300, according to Attom. Note how the gross profit was nearly the same—pointing to the higher cost of buying homes as a key factor in decreasing ROI.

States with the Highest ROI in Real Estate for Fix and Flips

The news isn’t all bad, though. Fix and flip real estate investors in Pennsylvania generated the largest ROI in real estate during 2023 with a 77.3% return. Only three other states – Maryland, Delaware, and Michigan – boasted average ROI of more than 60%.

These states experienced double-digit increases in fix and flip real estate ROI from 2022 to 2023.

States where fix and flip ROI increased from 2022 to 2023

Hawaii: +79%
Maine: +28%
Ohio: +26%
Oregon: +22%
North Carolina: +13%
Kentucky: +12%
Michigan: +12%

Pennsylvania’s Scranton/Wilkes-Barre/Hazleton market boasted the best returns for flippers at an average of 112.5% real estate ROI.

Flippers actually made the most money in California. In the San Jose/Sunnyvale/Santa Clara market, flippers made an average of $275,250 in 2023, according to Attom Data.

Check out the list below to see what state has the highest ROI for real estate investors who flip houses.  

Scranton/Wilkes-Barre/Hazleton, PA

Flipping Gross Profits: $90,000
2023 Gross ROI: 112.5%

Lake Charles, LA

Flipping Gross Profits: $86,256
2023 Gross ROI: 107.8%

Pittsburgh, PA

Flipping Gross Profits: $100,000
2023 Gross ROI: 105.3%

Akron, OH

Flipping Gross Profits: $91,556%
2023 Gross ROI: 99.5%

Buffalo/Cheektowaga/Niagara Falls, NY

Flipping Gross Profits: $94,000
2023 Gross ROI: 87.4%

Harrisburg/Carlisle, PA

Flipping Gross Profits: $94,500
2023 Gross ROI: 82.2%

Flint, MI

Flipping Gross Profits: $60,300
2023 Gross ROI: 80.7%

York/Hanover, PA

Flipping Gross Profits: $104,800
2023 Gross ROI: 77.6%

Hagerstown/Martinsburg, MD/WV

Flipping Gross Profits: $115,000
2023 Gross ROI: 76.7%

Salisbury, MD/DE

Flipping Gross Profits: $192,088
2023 Gross ROI: 76%

Ways to Increase ROI on Fix and Flip Investment Properties

Property renovations and rehab are great ways to increase the ROI on rental property for investors who use a fix and hold strategy (also known as BRRR investing).

Here are some things to think about when considering the benefits of rental property upgrades:

Increased rents

When investors upgrade a property, they’re more likely to be able to increase the rent because updated properties are more appealing to renters

Reduced vacancy rents

A well-maintained and updated rental property is less likely to sit empty because renters are more likely to choose to move into or stay in a property that is in good condition.

Improved tenant satisfaction

Tenants who are happy with their rental property are more likely to renew their lease rather than move out—reducing turnover and saving the investor time and money.

However, it’s important to remember that not all upgrades are equal. Some property upgrades will add value to a property, while other upgrades won’t make much of a difference. Here are some upgrades that can increase ROI:

Bathroom remodel
Kitchen remodel
Flooring update
Deck remodel
Finishing the basement
Curb appeal

Lima One: Your Trusted Partner for Private Money Loans in High ROI States

Flipping houses can be a profitable venture for investors willing to put in the time, effort, and resources required to succeed. It’s important to know the tricks of the fix and flip trade, but it’s also important to have the right private money lender in your corner.

Whether you’re a seasoned investor or a novice wondering how to flip a house with no experience, Lima One is here to help.

Lima One offers investors a number of options when it comes to financing fix and flip projects. Our product suite includes:

Fix and flip loans for investors who are buying distressed properties, rehabbing, and selling.

New Construction loans for builders with shovel-ready lots or teardown projects.

Bridge loans for interim financing for investment properties where a fast closing is needed and minimal or no rehab is planned.

Our diverse product suite is designed to allow us to cater to the individualized needs of our investors, and our experienced lending team will help you find the right financing based on your investment strategies.

Call our team of experts to learn more about what Lima One has to offer.