Cape Coral is a top pick for flipping real estate. That is according to new data from the WalletHub website.
The Waterfront Wonderland was ranked 25th out of 172 cities of the Best Places to Flip Houses in the United States.
Why Cape Coral is a top pick for flipping
It was placed 15th for Quality of Life, 27th for Market potential, and also 78th for Renovations & Remodelling Costs.
Houses across the country were flipped for an average $60,000 in Quarter 1, 2019. But WalletHub warns that flipping a house for profit is not easy.
WalletHub looked at 29 key factors ranging from median purchase price to average full home remodeling costs to the housing market health index.
The study looks at only the city proper and excludes cities in the surrounding metro area.
“Home flipping” is a real-estate term for buying a property to resell it for a profit. This is often gained through adding to the home’s value through repairs and updates.
The scoring system consists of:
Market Potential – Total Points: 35
Average Gross Return on Investment (ROI): (6.18 points)
Change in Gross ROI of Flipped Homes (2018 vs. 2017): (2.06 points)
Median Purchase Price: (2.06 points)
Share of Home Flips: (2.06 points)
Average Days to Flip: (2.06 points)
Home Turnover Rate (2016 vs. 2015): (2.06 points)
Housing Market Health Index: (2.06 points)
Average Ratio of Sale Price to List Price: (2.06 points)
Real-Estate Agents per Capita: (2.06 points)
Foreclosed Homes per 10,000 Homes: (2.06 points)
Mortgage Lenders per Capita: (2.06 points)
Real-Estate Tax Rate: (2.06 points)
Share of Flips Sold to Cash Buyers: (2.06 points)
Share of Flips Sold to FHA Buyers: (2.06 points)
Median Year Built: (2.06 points)
Renovation & Remodeling Costs – Total Points: 35
Average cost to Remodel the Kitchen (8.75 points)
The Average cost to Remodel the Bathroom: (8.75 points)
Average cost to Remodel the Full Home: (8.75 points)
Median Construction-Worker Salary: (8.75 points)
Quality of Life – Total Points: 30
Crime Rate: (3 points)
Perception of Safety (Safety walking alone during daylight/night): (3 points)
K–12 School-System Quality: (3 points)
Share of Population with Walkable Park Access: (3 points)
Family-Friendliness: (3 points)
Annual Job-Growth Rate: (3 points)
Unemployment Rate: (3 points)
Median Salary: (3 points)
Median Credit Score: (3 points)
Pace of Economic Growth: (3 points)
Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Renwood RealtyTrac, Zillow, Houzz, Federal Bureau of Investigation, U.S. Department of Housing and Urban Development, GreatSchools.org, The Trust for Public Land, Council for Community and Economic Research, Numbeo, TransUnion and also WalletHub research.