Michael Candelario is a real estate developer and investor located in Phoenix, Arizona. The Phoenix area has seen a recent boom in house flipping and price appreciation for residential homes, and in the article below, Michael Candelario discusses some other flipping hotspots in the country.
Flipping houses is a great way to make money if you know what you’re doing. Acquire a property that needs some work, fix it up, and then sell it for a nice profit. The only problem – not all markets guarantee the same high returns says Michael Candelario. To really turn a profit, you need to invest in an area with low prices, lots of inventory, and strong demand from buyers.
As of 2022, Dallas, Honolulu, and New Orleans are a few of the hottest real estate markets for flipping houses outside of Phoenix. Michael Candelario explains that each city offers unique conditions that make them ideal for buying up cheap, dilapidated properties and flipping them for a substantial profit. Keep reading to learn more about each market and how you can earn thousands of dollars from fixing up old houses.
Dallas, Texas
Michael Candelario notes that Dallas is the third-largest city in Texas, with a population of 1.3 million people and an urban spread of around 1,000 square kilometers. It’s home to Exxon Mobile, American Airlines, AT&T, and several other major corporations. Yet, what makes it such a hot market for flipping houses is the rate at which the city is growing.
In the last ten years, Dallas’s population has grown around 9% as the city welcomed more than 120,000 new residents. With so much growth, Dallas has become a hotbed for real estate developers looking to cash in on the city’s spread. For flippers, the rising demand for homes, paired with rapidly increasing housing prices, makes Dallas a top market.
In the last year alone, Michael Candelario reports that housing prices have skyrocketed by 25%, helping local flippers to cash in on their investments and walk away quite a lot richer. As the city continues to grow and attract new residents, more and more flippers are sure to cash in on the development.
Michael Candelario Surprise Pick: Honolulu, Hawaii
Considering that Honolulu is one of the most popular tourist destinations in the United States, Michael Candelario says it may seem like an odd pick for a home flipper. Yet, that’s exactly what makes it a top market. Despite higher-than-average home prices, Honolulu is an untapped gem full of vacant houses and condos left empty during the COVID-19 pandemic. These properties have slowly become dilapidated and need renovation.
As travel restrictions begin to loosen, more and more mainlanders will return to the island and look for available properties. For many home flippers, this presents an opportunity to cash in on the vacant properties and earn major profits in an already-expensive market.
The only downside to flipping in Honolulu is that developers must provide a substantial upfront investment if they want to join the market, according to Michael Candelario. This can create a lot of risk, especially considering that the global tourism market continues to fluctuate with every COVID outbreak. Before investing in the region, we recommend using caution and following the local situation closely.
New Orleans, Louisiana
New Orleans is a remarkable city unlike any other in the United States. Its blend of French Creole architecture, Southern hospitality, and big band music make it a top attraction for thousands of tourists every year, yet parts of the city still remain deeply scarred by the damage inflicted by Hurricane Katrina.
Although Katrina swept through New Orleans more than 15 years ago, many of the city’s poorer areas remain uninhabited or damaged by the floodwaters that once overtook the city says Michael Candelario. This has kept housing prices relatively low and, despite an overall recovery, some parts of the city still require renovation. This makes New Orleans an ideal market for house flippers hoping to cash in on cheap buy-ins.
Compared to other markets, New Orleans offers some of the highest returns on investment. According to data published by The Advocate—Louisiana’s largest newspaper—some houses have even sold for 77% more than their initial purchase price. Michael Candelario says this makes New Orleans one of the most profitable regions in the nation, bringing in, on average, an $86,000 profit per flipped house.
Final Thoughts
Michael Candelario explains that as real estate prices continue to rise around the United States, now is the time to cash in on the trend by flipping houses. Investing in old or dilapidated properties, fixing them up, and selling them for the price of a new home is a quick and relatively simple way to earn a profit.
For the best returns, look to Dallas, with its rapidly growing population, New Orleans, with its massive returns on investment, or Honolulu, with its abundance of vacant vacation properties. Although all three cities present their own unique situations, each market is guaranteed to turn a hefty profit.
