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Fix and Flip Real Estate: Where Should You Be Investing?

In Q2 of 2024, real estate investors have seen decreased activity, but increased profits in some of the nation’s most popular fix and flip markets, indicate that the market may be on the rebound from the lows of 2023 and first half of 2024.

ATTOM’s Second Quarter 2024 U.S. Home Flipping report, showed that housing flips represented a smaller portion of real estate transactions than in Q1, or in Q2 of 2023 at just 7.5%. However, the profits for fix and flip investors grew to an average of 30.4%. So while returns are still well below 2016 highs, they’re picking up from the decade’s low point of just 25% seen in 2023.

The Best Fix and Flip Markets to Invest in

As competition for real estate remains fierce, it's more important than ever for investors to do the proper due diligence before choosing a market for your next fix and flip investment.

If you're an active real estate investor, check out these cities that have become some of the best fix and flip markets in the nation due to roaring demand and stable profits.

Dallas, TX

The Dallas metroplex – comprised of Dallas, Fort Worth, and Arlington, Texas – is one of the best US metros for incredible real estate investment opportunities right now, specifically when it comes to fix and flip investments.

Investors looking to expand or break into the Dallas rental market need to know that new construction is the way to do it. Construction permits for new homes have have surged in Dallas and Fort Worth in the 2020's vs previous decades.

Specifically, single-family home construction permits are increasing in Fort Worth, but notably, new construction in the multifamily housing market has shown tremendous growth and may provide an investment opportunity unique to this market within Dallas.

With the surge of single-family, multifamily, and fix and flip activity, investors searching for hard money lenders in Dallas, TX should focus their sights on private lenders like Lima One that offer competitive fix and flip funding so they can move quickly when they find an investment opportunity in Texas.

Denver, CO

Denver’s real estate market has been hugely popular among top real estate investors for several years, which is a major reason it annually ranks among the hottest cities in the U.S. for housing growth.

Even during the pandemic, Denver attracted major corporations such as Healthpeak Properties Inc. and ModivCare, as well as tech companies trading the bustle of Silicon Valley for the mountain ranges of Colorado.

As Denver’s tech segment and population grow, demand for remodeled homes also grows. Fix and flip projects can earn a high ROI in Denver due to the competitive homebuying market and the availability of higher paying jobs. In addition, homes in this market typically sell within two months, providing a fast profit for investors.

Pittsburgh, PA

Known as Steel City, Pittsburgh has quickly become one of the hottest places in Pennsylvania to live because of its strong and steady real estate market. Investors can expect to find cheap properties here that can generate great profits.

The Motley Fool found that Pittsburgh had the best ROI for house flippers in Q2 of 2024, with an average gain of 114.7%. Pennsylvania overall was also ranked as the best state for house flippers.

Pittsburgh consistently has high rating for activity in the rental market, affordability, and quality of life – all factors real estate investors look for.

In addition, investors looking for cash-flowing real estate to hold for the long term may find that Pittsburgh is the perfect place to buy and hold rental property. Median home values are currently $239,900 (an increase of nearly 50% from five years ago.

New Orleans, LA

There is a high demand for rental properties in New Orleans. One of the lasting effects of Hurricane Katrina was the destruction of affordable properties located in the flood plain. Many New Orleans residents were forced to move because they couldn’t rebuild below sea level.

Some residents left altogether, while others returned to the city within a year or so. Returning residents and Hispanic immigrants working in the city’s tourism industry created a high demand for rental properties in New Orleans.

The French Quarter, Mardi Gras, and Bourbon Street are just a few of the attractions that bring people to New Orleans, creating a great market for investors interested in short-term rental options. Investors considering New Orleans should note that the city passed laws legalizing short-term rentals like Airbnb.

According ATTOM DATA, in 2023, investors saw an average return of 84.6% for fix and flips. That ROI is one reason investors may decide that New Orleans is a house flipping market to keep their eye on this year.

Greensboro, NC

Rents and housing prices are on the rise in Greensboro, creating the potential for increased yields for buy and hold investors interested in investing in the city’s market.

Greensboro is part of the Piedmont Triad in central North Carolina. It’s small enough for people to know their neighbors, yet large enough to be home to a thriving economy. Numerous corporate headquarters and a stable job market make Greensboro a great place for both workers and business.

30% of the population of Greensboro is between the ages of 20 and 39, a key age group that traditionally prefers to rent rather than own where they live.

The Greensboro fix and flip market is one of the best in the U.S. for investors looking to invest in real estate under $200,000.

Fix and flip investors can remodel homes in Greensboro and sell them in about two and a half months. With a growing real estate market, Greensboro is among the best places to flip houses in North Carolina.

Fix and Flip Financing

Finding the right location is half the battle for fix and flip investors. When investors know the best places to flip houses based on initial purchase costs, renovation charges, and turnaround times, they can be confident that they will turn a profit.

Lima One Capital has the best fix and flip loan options among private lenders for investors looking for a rehab loan for an investment property, with the option to easily and affordably transition the flip to a rental property with a rental loan.

As experienced hard money lenders, we’re able to move quickly when you find the right opportunity to invest in a fix and flip property. We understand that our clients have a wide range of investment strategies, so we have designed our fix and flip loan options to allow us to cater to their individualized needs.

Regardless of your investment strategy, we’re here to help. Contact us today to discuss your next deal, or if you have a deal in hand, you can speed up the process by applying now.

Editor’s note: This blog was originally published in April 2021 has been updated as of February 2025 for comprehensiveness