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Real estate investors intent on flipping houses to make big profits might consider buying property in a historically depressed urban area where the market for existing homes is tight and new home construction is practically nonexistent.
ATTOM Data Solutions, parent company to RealtyTrac, pored through housing data in 3,561 ZIP codes to identify the best neighborhoods for flipping houses. To make the final cut, neighborhoods had to have:
- A population of at least 2,500 people, of which 25 percent or more were millennials.
- An increase in construction loans over the previous year.
- A higher than average percentage of homes with underwater loans.
- Below-average elementary schools.
- A minimum 60 percent average flipping gross return in 2015.
Here are the top neighborhoods with the biggest potential for profits.