delapidated home

Fresno is the No. 10 best market for fixing up dilapidated homes and making a profit, according to storagecafe.com. Image by Johnny Briggs on unsplash.com.

published on August 11, 2022 - 10:01 AM
Written by The Business Journal Staff

For investors relying on sweat equity to turn a profit on a house, Fresno is the market for them.

A study has ranked Fresno as the No. 10 best market for fixer-upper homes in the nation — the only West Coast city to crack the top 10.

StorageCafe.com analyzed for-sale listings containing keywords — “TLC,” “good bones,” “as is” — associated with debilitated properties and compared them with prices compared to turnkey homes.

Fixer-uppers in Fresno have an average 34.9% discount compared to move-in ready homes.  The median price of a Fresno home stands at $445,000, according to the study, compared to those needing some work at $289,839.

In addition, fixer-uppers make up 5% of the housing stock in Fresno.

fixer-upper map
Image via StorageCafe.com

 

Milwaukee, Wisconsin, took the top spot in the nation with a 59% discount on homes for an average price of $79,900.

San Jose had the most expensive debilitated homes at $1.3 million.

Los Angeles ranked No. 1 for the biggest discount for cash offers, averaging $500,993 in savings.

Omaha, Nebraska, had the biggest share of fixer-upper homes at 65% of housing stock.

Most house flips don’t qualify for mortgages with typical lenders such as Fannie Mae or Freddie Mac. They are mostly short-term loans and investors have less than a year to repay those loans.


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