Let's talk "House Flipping".

Not a week goes by that I don't come across someone saying "Hey, if you came across something that needed some TLC,  give me a call". But that market in our area is pretty much dried out. My friend who used to do that full time,  is now busy doing kitchen and bathroom remodeling. High prices has squeezed the profit margin so thin, it's not worth it any more. I mean, most flippers have to borrow their capital to buy the house with very high  interest rates. Then pour money in it, hire a realtor and split the profit between the investors. Not worth it. Doing remodeling requires none of that and there is plenty of work to go around. I need my friend to do some  work in my house and he was booked for the next 60 days. Talk about being in the wrong business. 
I came across this article which talks about the best markets for flipping and there is no surprise  that Sacramento is not in there. Closest one to us is Fresno, CA. If you ever found out what makes Fresno a hot flipping market, let me know too. 

The Best Housing Markets for Home Flippers

DAILY REAL ESTATE NEWS | WEDNESDAY, MAY 23, 2018

House flipping activity surged to an 11-year high this year, with more than 207,000 homes flipped, according to ATTOM Data Solutions, a real estate data firm. But the key is knowing where to be and when. “The sweet spot for successful home flipping is finding the neighborhoods just emerging as the next hot neighborhoods in a city,” says Daren Blomquist, a senior vice president at ATTOM Data Solutions. The firm says the average profit for a housing flip in 2017 was $68,100.

Realtor.com® ranked the 200 largest metros according to the share of all home sales categorized as a flip (defined as any type of home that is bought and resold within a three- to 12-month period). Researchers limited their rankings to two metros per state for geographic diversity and only included markets where the average profit was at least $30,000.

The following are the best housing markets for home flippers, according to realtor.com®:

1. Nashville, Tenn.

• Ratio of flips to all home sales: 4.1%
• Average flip profit: $87,200

2. Fresno, Calif.

• Ratio of flips to all home sales: 3.5%
• Average flip profit: $53,200

3. Palm Bay, Fla.

• Ratio of flips to all home sales: 3.3%
• Average flip profit: $71,500

4. North Port, Fla.

• Ratio of flips to all home sales: 3.3%
• Average flip profit: $85,300

5. Baton Rouge, La.

• Ratio of flips to all home sales: 3.2%
• Average flip profit: $70,000

6. Chattanooga, Tenn.

• Ratio of flips to all home sales: 3.1%
• Average flip profit: $65,800

7. Los Angeles

• Ratio of flips to all home sales: 3%
• Average flip profit: $169,400

8. Lubbock, Texas

• Ratio of flips to all home sales: 2.7%
• Average flip profit: $46,000