13 US housing markets where speculators are making a killing flipping homes

house home renovation flipping gutting

REUTERS/Phil McCarten

Putting in some elbow grease.

Flipping homes is on the rise according to real estate data tracking firm RealtyTrac.

This practice of buying a house, fixing it up, and then quickly selling it is a popular way to book a quick profit.

"After curtailing flipping activity last year due to slowing home price appreciation and shrinking inventory of flip-worthy homes, real estate investors have started to jump back on the flipping bandwagon in 2015," said Daren Blomquist, vice president at RealtyTrac.Advertisement

According to a RealtyTrac study, 43,197 homes were flipped during the third quarter, which accounted for 5% of all home sales in the US.

Additionally, flippers are seeing profits rise on the houses. Flippers averaged $62,122 in profits for the third quarter, which is up slightly from an average profit of $61,781 during the same quarter last year.

We took RealtyTrac's data and compiled a list of the top 13 counties in the US where flippers made more than 65% return on investment during the third quarter. The list is ranked from lowest return to highest and includes the average gross profit, purchase price for flippers and selling price.
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Check them out below.

13. Middlesex, CT

13. Middlesex, CT

Average Gross Return on Investment:
64.8%

Average Gross Profit:
$88,890

Average Purchase Price:
$137,130

Average Flipped Price:
$226,020

Source: RealtyTrac

12. Camden, NJ

12. Camden, NJ

Average Gross Return on Investment:
67.5%

Average Gross Profit:
$91,054

Average Purchase Price:
$134,853

Average Flipped Price:
$225,907

Source: RealtyTrac

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11. Cook, IL

11. Cook, IL

Average Gross Return on Investment:
68.0%

Average Gross Profit:
$94,598

Average Purchase Price:
$139,035

Average Flipped Price:
$233,633

Source: RealtyTrac

10. St. Louis City, MO

10. St. Louis City, MO

Average Gross Return on Investment:
70.9%

Average Gross Profit:
$33,894

Average Purchase Price:
$81,674

Average Flipped Price:
$47,780

Source: RealtyTrac

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9. Philadelphia, PA

9. Philadelphia, PA

Average Gross Return on Investment:
72.0%

Average Gross Profit:
$47,909

Average Purchase Price:
$66,543

Average Flipped Price:
$114,452

Source: RealtyTrac

8. Jefferson, LA

8. Jefferson, LA

Average Gross Return on Investment:
72.4%

Average Gross Profit:
$66,620

Average Purchase Price:
$91,956

Average Flipped Price:
$158,577

Source: RealtyTrac

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7. Berks, PA

7. Berks, PA

Average Gross Return on Investment:
73.4%

Average Gross Profit:
$72,371

Average Purchase Price:
$98,534

Average Flipped Price:
$170,905

Source: RealtyTrac

6. Niagara, NY

6. Niagara, NY

Average Gross Return on Investment:
74.7%

Average Gross Profit:
$40,758

Average Purchase Price:
$54,529

Average Flipped Price:
$95,287

Source: RealtyTrac

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5. Prince George's County, MD

5. Prince George's County, MD

Average Gross Return on Investment:
74.8%

Average Gross Profit:
$109,153

Average Purchase Price:
$145,896

Average Flipped Price:
$255,048

Source: RealtyTrac

4. Jackson, MI

4. Jackson, MI

Average Gross Return on Investment:
82.4%

Average Gross Profit:
$54,214

Average Purchase Price:
$65,786

Average Flipped Price:
$120,000

Source: RealtyTrac

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3. New London, CT

3. New London, CT

Average Gross Return on Investment:
85.9%

Average Gross Profit:
$88,900

Average Purchase Price:
$103,438

Average Flipped Price:
$192,338

Source: RealtyTrac

2. Cumberland, NJ

2. Cumberland, NJ

Average Gross Return on Investment:
98.3%

Average Gross Profit:
$67,692

Average Purchase Price:
$68,833

Average Flipped Price:
$136,525

Source: RealtyTrac

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1. Allegheny, PA

1. Allegheny, PA

Average Gross Return on Investment:
99.3%

Average Gross Profit:
$76,780

Average Purchase Price:
$77,330

Average Flipped Price:
$154,110

Source: RealtyTrac

13 US housing markets where speculators are making a killing flipping homes

13 US housing markets where speculators are making a killing flipping homes

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