Memphis is a great investment area!
> Return on investment: 51%
> Avg. gross profit: $35,651 (28th lowest)
> Flipped price: $105,176 (12th lowest)
> Number of flips: 156
> Flips, pct. of home sales: 5.0% (48th lowest)
Home flipping tends to be more profitable in economically distressed areas, which may partly explain its popularity in the Memphis area. Memphis’ unemployment rate was 8.2% in 2014, well above the national rate of 6.8%. Unlike most cities where home flipping is lucrative, property values in the Memphis area have increased from a year ago. Prices, however, are still relatively low. Flipped homes were purchased for an initial price of $69,524 on average last quarter, up from slightly more than $60,000 in the same period last year. Despite the increase, the return on investment from flipping rose 11 percentage points, to 51%. Low prices in the region likely made it easier for flippers to pay in cash. More than 50% of sales were paid in cash so far this year.