In 2013, investors bought more than 156,000 homes, only to fix them up and quickly resell them for an average profit of $58,081. Home flipping became increasingly popular as the housing market began to recover. However, while the number of U.S. home flips increased in 2013 compared with 2012, home flips as a proportion of all home sales declined from 7.1% of sales in the fourth quarter of 2012 to just 3.8% of sales in the fourth quarter of 2013, partly because of declining inventory.

Where homes are available, however, substantial profits can still be made. In six states, home flippers made an average profit of considerably more than $80,000 in 2013. In the top state, the gross profit on a flipped home was more than $100,000. 24/7 Wall St. examined the six states where home flipping was most lucrative in 2013.

Buying homes to flip when market prices are relatively high may mean more overhead, but the fact remains that the states and metro areas with the largest average profits on home flips were the more expensive housing markets. All of the six most profitable states to flip a home in 2013 had among the highest average purchase prices that year. “High prices result in higher profits,” confirmed Daren Blomquist, vice president at home data site RealtyTrac. “These states are basically the highest-priced markets in the country.”

24/7 Wall St. examined the six states with an average gross home flip profit of at least $80,000 in 2013, based on data from RealtyTrac. RealtyTrac also provided average flip price, average gross profit, and the proportion of all home sales that were flips for 2011 and 2012, and Q4 2013 for States and U.S. Metro areas. We also reviewed RealtyTrac’s foreclosure rates for 2013.

http://homes.yahoo.com/photos/6-best-states-to-flip-a-house-1392234911-slideshow/