Delaware’s two largest cities rank near the bottom as good locations for house flippers, although Wilmington has long term potential
A report from WalletHub ranked Wilmington 167 and Dover 135th out of 172 cities.
The financial information services website included large and small cities, with the two largest cities in each state ranked in the report.
|Best Cities to Flip Houses||Worst Cities to Flip Houses|
|1||Sioux Falls, SD||163||Los Angeles, CA|
|2||Missoula, MT||164||New York, NY|
|3||Rapid City, SD||165||New Haven, CT|
|4||Billings, MT||166||Boston, MA|
|5||Peoria, AZ||167||Wilmington, DE|
|6||Tampa, FL||168||San Francisco, CA|
|7||Fort Smith, AR||169||Oakland, CA|
|8||Greensboro, NC||170||Newark, NJ|
|9||Las Cruces, NM||171||Yonkers, NY|
|10||Boise, ID||172||Bridgeport, CT|
Flippers in the state have long blamed Delaware’s transfer tax on property sales as a negative. Efforts have been made to aid lower income and first-time homebuyers who can be frozen out of the market by the tax.
The transfer tax is paid by both buyer and seller and reduces profits for flippers who buy homes, make improvements and put the property on the selling market.
Delaware has also seen modest gains in home prices as the state climbed out of a steep recession that led to the loss of both auto plants and continuing downsizings at big employers like DuPont.
Flippers often take advantage of hot housing markets elsewhere in the nation as well as neighborhoods in a turnaround stage.
Despite, Wilmington ranking near the bottom as a flipping hotspot, it finished ninth for flipping potential. That means a patient flipper might have a chance to make a profit if the turnaround of the city continues. Dover finished a disant 109th.
Contributing to the low rankings of Dover and Wimington was quality of life and remodeling costs.
Click here for the full report.