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The best and worst states for house flipping

Flipping houses refers to buying homes with the intent to quickly resell them at a profit. To boost profits, a flipper often makes improvements or remodels the home to make it more attractive to buyers. Flipping houses has become more popular since several reality television shows have featured the practice.

But if you’re looking to make a return on your home by flipping it, keep in mind not all states are created equal. To determine the best states to flip houses, GOBankingRates studied median list prices, the length of time it took to flip houses and the profitability of house flips.

10 Worst States for House Flipping

Here’s a little tip for those who are new to house flipping: Flipping homes is typically less profitable in markets where properties don’t move as quickly. In these areas, flippers have their money tied up in each project for a longer period of time.

10. Missouri

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  • Median home list price: $204,506
  • Average number of days to flip a home: 179 days
  • Average gross profit: $36,474.67
  • Average gross ROI: 47.3 percent

Missouri’s median list price makes it a little more attractive to flip, as it’s the eighth lowest in the country. However, you won’t make as much per flip. The state has the ninth-lowest average gross profit and the 13th-lowest average return on investment (ROI). Plus, Missouri is one of the states where home values have increased the least, found a separate GOBankingRates study.

9. North Dakota

  • Median home list price: $226,863
  • Average number of days to flip a home: 208
  • Average gross profit: $54,933.50
  • Average gross ROI: 39.6 percent

North Dakota is not one of the best places to make a profit on your home if you’re interested in flipping. The average gross profit tops $50,000, which isn’t awful as 18 states are worse. However, the average ROI of less than 40 percent is the 10th lowest in the country. North Dakota also has the sixth-longest average flip time per house.

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8. New Mexico

  • Median home list price: $254,798
  • Average number of days to flip a home: 203
  • Average gross profit: $43,862.50
  • Average gross ROI: 26.6 percent

Although it’s one of the 10 best states for first-time homebuyers, according to a 2017 study, New Mexico’s place on the list of worst states to flip is due to having the sixth-lowest average gross ROI and the 13th-lowest average profit. Plus, it takes just over 200 days, on average, to flip a home, putting it in the bottom 10 for turnover time.

7. Utah

  • Median home list price: $440,946
  • Average number of days to flip a home: 194
  • Average gross profit: $49,294.67
  • Average gross ROI: 27.9 percent

Utah is an expensive state to flip homes in, having the sixth-highest median home list price. The average home flips in just under 200 days, and the average gross ROI is the eighth lowest across the country at less than 30 percent.

6. Idaho

  • Median home list price: $349,000
  • Average number of days to flip a home: 182
  • Average gross profit: $26,605.50
  • Average gross ROI: 14.6 percent

Idaho isn’t a particularly good state for flipping homes because of the low profits. The average gross profit per flip and the average gross ROI are both the third lowest nationwide.

5. South Dakota

  • Median home list price: $238,163
  • Average number of days to flip a home: 188
  • Average gross profit: $17,750
  • Average gross ROI: 26.1 percent

Homes in South Dakota take an average of 188 days to flip, the 16th slowest in the country. Plus, flippers often don’t make much money. The average gross profit of less than $18,000 per flip is the second lowest in the country, trailing only Mississippi.

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4. Wyoming

  • Median home list price: $291,855
  • Average number of days to flip a home: 231
  • Average gross profit: $33,475
  • Average gross ROI: 18 percent

Wyoming is in the middle of the pack with a median home list price below $300,000, but the state is dead last in the average number of days to flip a home at 231. It also has the seventh-smallest average gross profit and the fourth-lowest average ROI.

3. Montana

  • Median home list price: $314,959
  • Average number of days to flip a home: 223
  • Average gross profit: $30,325.67
  • Average gross ROI: 12.9 percent

Montana has the second-smallest average gross ROI, trailing only Mississippi, and the second-longest time period to flip at 223 days, trailing only Wyoming. Plus, the average gross profit is barely $30,000, so Montana comes in as the third-worst state for flipping.

2. Hawaii

  • Median home list price: $905,687
  • Average number of days to flip a home: 198
  • Average gross profit: $76,266
  • Average gross ROI: 27.7 percent

Hawaii has the seventh-smallest average gross ROI in flips at less than 30 percent. Plus, its median home list price of over $900,000, the highest nationwide, ties up a lot of your capital at a time, making it really hard for anyone — especially millennials — to buy a home there.

1. Mississippi

  • Median home list price: $195,390
  • Average number of days to flip a home: 220
  • Average gross profit: $9,875
  • Average gross ROI: 4.3 percent

The median home list price in Mississippi is under $200,000, the sixth lowest in the country. But that doesn’t make up for the fact that it takes an average of 220 days — the fourth-longest time — to flip a home, and the average gross profit and average gross ROI are both the smallest of any state.

10 Best States for House Flipping

Most of best places to flip homes are all east of the Mississippi River. Keep reading to learn where you can make a nice profit flipping houses.

10. Kentucky

  • Median home list price: $213,848
  • Average number of days to flip a home: 172
  • Average gross profit: $55,241
  • Average gross ROI: 107.8 percent

Though the average gross profit is only $55,000 — just outside the top half of states overall — the average gross ROI is almost 108 percent, which ranks eighth overall. Kentucky also has the 11th-lowest median home list price.

9. Illinois

  • Median home list price: $277,163
  • Average number of days to flip a home: 196
  • Average gross profit: $77,316.67
  • Average gross ROI: 110 percent

Illinois boasts the sixth-largest average gross ROI of any state. Combined with an average gross profit of almost $80,000 per flip, those stats propel it to a top-10 overall finish. But flips can take longer in Illinois than elsewhere, with the average length to flip at almost 200 days.

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8. Florida

  • Median home list price: $406,803
  • Average number of days to flip a home: 151
  • Average gross profit: $59,916.67
  • Average gross ROI: 83 percent

Florida is one of the 10 most expensive states when ranked by median home list price, but you can earn a tidy profit when you flip homes in the state. In addition, the average of 151 days to flip is the fourth-shortest turnaround time in the country.

7. Virginia

  • Median home list price: $341,015
  • Average number of days to flip a home: 184
  • Average gross profit: $91,783.33
  • Average gross ROI: 99.3 percent

Virginia’s place on this list is secured by its high profits: It fits in the top 10 for both average gross profit and average gross ROI. But it’s merely middle of the pack for days to flip, with the average home taking about half a year.

6. Maryland

  • Median home list price: $369,454
  • Average number of days to flip a home: 198
  • Average gross profit: $109,616.67
  • Average gross ROI: 109.6 percent

Maryland homes average just under 200 days per flip, the 11th-slowest turnover time in the study. However, the state still ranks highly overall because the average gross profit of almost $110,000 is the third highest in the study.

5. Colorado

  • Median home list price: $538,477
  • Average number of days to flip a home: 176
  • Average gross profit: $74,300
  • Average gross ROI: 155.6 percent

Colorado homes aren’t cheap to buy, with the median home list price being the fifth highest of any state. But the homes turn over relatively quickly, and the average gross ROI is the second highest nationwide, so if you can afford to buy a house, you can often cash out a huge profit.

4. Louisiana

  • Median home list price: $232,610
  • Average number of days to flip a home: 166
  • Average gross profit: $71,866
  • Average gross ROI: 104.2 percent

Louisiana homes take 166 days to flip, the eighth-shortest turnover time in the country. Plus, the average gross profit per flip is over $70,000. With the 16th-lowest median home list price, that translates to an average gross ROI of over 100 percent.

3. New Jersey

  • Median home list price: $372,916
  • Average number of days to flip a home: 207
  • Average gross profit: $102,300
  • Average gross ROI: 141.6 percent

With a median list price of over $370,000, New Jersey homes aren’t cheap, and they take an average of over 200 days to turn over. But when they do sell, the flippers make big profits. The state ranks sixth in average gross profits and third in average gross ROI.

2. Pennsylvania

  • Median home list price: $224,090
  • Average number of days to flip a home: 199
  • Average gross profit: $105,189.67
  • Average gross ROI: 162.4 percent

Pennsylvania has the 13th-lowest median listing price, but the state performed even better when it came to making money. Its average profit of over $105,000 per house was the fifth largest of any state, and the over 160 percent ROI was the highest in the country.

1. Tennessee

  • Median home list price: $268,692
  • Average number of days to flip a home: 147
  • Average gross profit: $57,600
  • Average gross ROI: 132.7 percent

Tennessee tops the list of best places to flip homes in large part because it has the third-shortest turnover time at just 147 days. Plus, even though the average flip profit is a respectable $57,600, that number converts to a more impressive 132.7 percent ROI, the fourth highest of any state.

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