Amid reports of bidding wars are markets where the art of flipping can still be maintained. After analyzing some 600 metros in its database, RealtyTrac came up with a list of 25 markets where investors can yield the highest gross profit (the difference between average original purchase price and the eventual flipped sales price) from flipping.
For the report, flipping was defined as a situation where the sale of a home occurred within six months or less of the previous sale of the same home.
Even though foreclosure discounts aren't where they used to be, RealtyTrac expects the practice of flipping homes to remain favorable for investors this year as home prices continue to rise.
The online foreclosure marketplace found flippers in Orlando, Florida averaged the highest gross profit at 63 percent. The average purchase price in the area was $103,701 in 2012, while the average flipped price was $168,677.
Las Vegas came in second, where flippers saw a gross profit of 53 percent last year. Phoenix, a metro known for its rapid price gains over the last year, pulled in a gross profit of 44 percent, putting it at third. Four more Florida metros were in the top 10--Tampa (No. 4), Miami (No. 6), Lakeland (No. 7) and Sarasota (No. 9). Gross profits ranged from 34 percent to 43 percent in those cities.
Tennessee metros Memphis and Nashville were also among the top 10 for their gross profits of 42 percent and 35 percent, respectively. Tucson was at No. 10, where gross profit stood at 34 percent last year.
While not among the top 10, 11 California metros were represented on the list, including San Diego, San Francisco, Sacramento, Inland Empire, and Stockton.
Out of the 25 metros, Detroit, Michigan yielded the lowest gross profit for flippers at 8 percent.
Average purchase prices for the metros ranged from $68,444 for Lakeland up to $422,526 for San Jose.