Flip this house!
San Antonio is the number one city in the country for 'home flipping,' according to the Real Estate tracking company RealtyTrac.
Home flipping is the process of buying a house, fixing it up or making repairs, and then quickly selling it for a higher price as the housing market surges.
San Antonio home flipping is up 52%. The other markets where flipping is strong are also cities with booming economies, including Austin, Nashville, and Oklahoma City.
Armando Montelongo, who has become synonymous with the home flipping industry through his A&E program 'Flip This House' and his best selling book, "Flip and Grow Rich" says the reason his adopted home town is doing well is that housing here is relatively cheap to begin with.
"Profit margins are so high because we have such inexpensive housing here in San Antonio," Montelongo told 1200 WOAI's Michael Board.
He says its a lot easier to make money home flipping in a housing situation where prices are low, but rising steadily. He says you don't want a market where housing prices are frequently spiking or plummeting.
He says it also helps that people are flocking to San Antonio, which has essentially full employment, and having people willing to buy the flipped home.
"The small amount of money you have to put into the houses, relative to the amount of spread you can make," he said.
House flipping has become a much more selective business opportunity since the Great Recession. RealtyTrac says several major markets which once were flipping Meccas, including the place where flipping was born, Phoenix, and now listed as some of the least attractive markets for flipping.
What is popular for flipping. Americans still live the classic three bedroom home, with 58% of all properties flipped in the first quarter being classic three bedrooms, RealtyTrac said.
It says the vast majority of flipped homes were sold to individuals who plan on making the home their primary residence, while only 18% went to other investors.
And the reason flipping remains profitable. In markets where flipping is hot, like San Antonio, 43% of all properties were sold for all-cash in the flipper's pocket.