Here are the American cities where you can make up to a 74% profit flipping a home

The answer? Fixer-uppers.

Not only do they offer a viable entry point into homeownership, but they could also pave the way for future profits.

According to a recent analysis by home repair company Frontdoor, Detroit emerges as a hotspot for house flippers.

The study reveals that a typical renovated home in the Motor City commands a whopping 74% premium compared to the average property in the area.

For those seeking fixer-upper opportunities, New Orleans boasts the highest availability, while St. Louis offers the most affordable options.

Frontdoor’s analysis, based on real estate company Redfin’s home listings data, unveils intriguing insights into the market.

Cities with the most “renovated” or “fixer-upper” listings per 1,000 properties were identified, and the average prices for these homes were calculated. The resulting rankings shed light on the stark price differences between renovated or fixer-upper homes, and those without these tags.

Renovated home prices exhibit significant variations across cities, creating attractive prospects for both buyers and sellers.

Boston and Trenton, New Jersey, came in with premiums of 69.34% and 65.50%, respectively.

But the fixer-upper trend extends beyond the Midwest. Annapolis, Maryland, and even the bustling New York City market show promising returns, selling for 60.39% and 57.93% more than the average property, respectively.

While Detroit’s housing market has experienced a recent surge, it remains one of the most affordable nationally.

A recent Zillow listing featured a 5,200-square-foot home with nine bedrooms and eight bathrooms for a mere $124,900 — unthinkable less than two decades ago when foreclosures and $1 property sales were commonplace.

The city’s revival can be attributed to the resurgence of the automotive industry, now focusing on electric vehicles. This industrial upturn is luring individuals back to Detroit, where an abundance of homes awaits rejuvenation.

However, not all cities experience a renovator’s dream.

Durham, North Carolina, and Kansas City, Missouri, witnessed a decrease in value for renovated homes — 30.59% and 21.05%, respectively.

Kansas City’s affordable prices are attributed to a surge in out-of-state investors, prioritizing rental income over property conditions.