Wholesaling real estate remains one of the most lucrative strategies for property investors in 2025, but success often depends on where you focus your efforts.
Choosing the right state can make or break your wholesaling business, as each market offers unique challenges and opportunities.
In this guide, we rank the 18 best states to wholesale real estate in 2025 based on market demand, investor-friendly laws, affordability, and potential returns.
Factors to Consider When Choosing a State to Wholesale Real Estate
- Market Demand: Look for states with growing populations and strong rental demand.
- Legislation: Ensure the state has investor-friendly laws that allow wholesaling without excessive regulations.
- Affordability: Focus on states with low property prices relative to ARV.
- Competition: Avoid oversaturated markets unless you have a unique edge.
1. Texas
Known for its booming population and economic growth, Texas is a top market for wholesalers.
Cities like Dallas, Houston, and San Antonio offer strong demand for affordable housing, making it a haven for wholesale deals.
Texas also has no state income tax, which is an added bonus for investors.
Why Texas is Ideal for Wholesaling:
- Diverse Market: From urban centers to rural areas, Texas offers opportunities across all property types.
- Economic Growth: Consistent job growth and migration trends fuel housing demand (Texas Housing Statistics).
- Investor Community: Texas hosts numerous real estate investing groups and events, creating a supportive environment.
2. Florida
Florida’s mix of retirees, growing urban centers, and an influx of new residents makes it a hotbed for real estate.
Cities like Tampa, Orlando, and Jacksonville are ripe with motivated sellers and investors seeking rental properties.
Key Highlights:
- Population Growth: Florida gains thousands of new residents each month.
- Diverse Markets: From luxury condos to mobile homes, there’s a niche for every wholesaler (Florida Realtors Statistics).
- Tourism Impact: Seasonal demand for rentals adds another layer of opportunity.
3. Georgia
With Atlanta leading the charge, Georgia offers a balance of urban and suburban opportunities.
The state’s affordable housing and steady population growth make it ideal for wholesaling.
Why Choose Georgia:
- Strong ARVs: Atlanta properties tend to appreciate, giving wholesalers good margins.
- Growing Suburbs: Areas surrounding major cities offer low competition and high potential (Atlanta Housing Data).
- Legislative Support: Georgia has clear real estate laws that benefit investors.
4. Ohio
Ohio’s low property prices and high rental demand, particularly in cities like Cleveland, Columbus, and Cincinnati, make it an excellent market.
The Midwest is an investor-friendly region where cash buyers are abundant.
Advantages of Wholesaling in Ohio:
- Affordable Entry: Properties in Ohio often have lower acquisition costs.
- Stable Returns: High rental demand provides consistent opportunities for cash flow-focused investors.
- Growing Markets: Cities like Dayton and Akron are becoming increasingly popular for real estate investment (Ohio Real Estate Licensing).
5. North Carolina
The Tar Heel State is seeing rapid growth, particularly in Charlotte and Raleigh.
With rising property values and a strong rental market, wholesalers can capitalize on a growing pool of buyers.
Market Highlights:
- Tech Hubs: Charlotte and Raleigh are attracting young professionals, driving housing demand.
- Investor Networks: North Carolina hosts active real estate investment groups.
- Appreciation Potential: Property values have been steadily increasing in major cities (NC Housing Agency).
6. Arizona
Arizona remains a hotspot for wholesaling, thanks to its strong housing demand.
The state’s straightforward real estate laws make it a preferred state for new wholesalers.
Benefits of Arizona’s Market:
- Fast Turnaround: Homes in Phoenix often sell quickly, reducing holding times.
- Retiree Demand: Many retirees seek affordable homes in Arizona.
- Hot Market: Population growth ensures consistent demand for housing (Arizona Housing Market Data).
7. Indiana
Indiana is a hidden gem for real estate wholesalers. Indianapolis and Fort Wayne are especially attractive for finding deals with solid ARVs.
Why Indiana is Underrated:
- Low Competition: Many wholesalers overlook this market, leaving plenty of opportunities.
- Cash Buyer Demand: Investors are actively purchasing in cities like South Bend and Evansville.
- Affordable Properties: Entry prices are among the lowest in the U.S. (Indiana Real Estate Commission).
8. Tennessee
Cities like Nashville and Memphis are experiencing growth, and their strong tourism industries contribute to housing demand. Tennessee combines affordability with high rental demand.
Key Points:
- Tourism Revenue: Nashville’s music scene and Memphis’ cultural attractions bring steady renters.
- Growing Suburbs: Areas outside major cities provide opportunities for lower-priced deals.
- Economic Growth: Job creation is driving demand for housing (Tennessee Housing Development Agency).
9. Alabama
Birmingham and Huntsville are particularly attractive for investors in Alabama. Huntsville is growing rapidly due to tech and defense industries.
Why Alabama Deserves Attention:
- Emerging Markets: Huntsville is experiencing economic growth, creating strong housing demand.
- Low Cost of Living: Affordable homes attract out-of-state buyers.
- Undervalued Properties: Many homes offer significant equity potential.
10. Michigan
Detroit’s revitalization has created opportunities for wholesalers. The city’s low property prices and high potential returns attract many investors.
Detroit Spotlight:
- Revitalized Neighborhoods: Once-overlooked areas are seeing new investment.
- Low Entry Costs: Detroit properties remain affordable despite appreciation.
- Steady Rental Demand: The city’s growth fuels investor interest (Michigan Housing Data).
11. Missouri
St. Louis and Kansas City are thriving markets with affordable inventory and high rental demand.
Why Missouri Stands Out:
- Diverse Opportunities: Both urban and suburban markets are thriving.
- Affordable Inventory: Properties can be acquired at below-market rates.
- Investor Activity: Missouri attracts a mix of local and out-of-state buyers (Missouri Housing Commission).
12. Virginia
Virginia combines economic stability with high demand for real estate. Northern Virginia and Richmond are strong markets for wholesalers.
Market Insights:
- Government Jobs: Proximity to Washington, D.C., drives demand in Northern Virginia.
- Steady Appreciation: Richmond offers solid long-term growth.
- Luxury Markets: High-end properties present unique wholesaling opportunities.
13. Pennsylvania
Philadelphia and Pittsburgh offer a mix of affordable housing and strong rental demand. Pennsylvania’s diverse property market attracts a wide range of investors.
Highlights:
- Urban Focus: Philadelphia’s diverse neighborhoods create unique opportunities.
- Growing Suburbs: Surrounding areas provide affordable alternatives.
- Historic Demand: Renovations in older areas offer value-add potential (Pennsylvania Realtors).
14. Illinois
Despite some challenges in Chicago, Illinois remains a profitable market for wholesalers. The state offers a mix of urban and suburban opportunities.
Key Points:
- Chicago Focus: Unique neighborhoods cater to diverse buyers.
- Suburban Growth: Cities like Peoria and Rockford are gaining attention.
- Investor Activity: Out-of-state investors are active in Illinois (Illinois Realtors).
15. Arkansas
Arkansas offers low property prices and minimal competition. Little Rock is a prime market for finding motivated sellers.
Benefits:
- Low Entry Costs: Affordable properties allow for higher margins.
- Stable Demand: Little Rock’s economy ensures consistent housing needs.
- Small Market Appeal: Less competition compared to larger states (Arkansas Real Estate Commission).
16. Kentucky
Louisville and Lexington provide strong markets for wholesalers due to their affordability and stable housing demand.
Why Kentucky Works:
- Steady Growth: Both cities are seeing population increases.
- Investor Community: Active real estate groups help connect buyers and sellers.
- Affordable Homes: Low prices offer strong ROI potential (Kentucky Housing Corporation).
17. Iowa
Cedar Rapids and Des Moines are investor-friendly cities with a growing demand for housing.
Iowa’s Advantages:
- Growing Cities: Des Moines offers job growth and housing demand.
- Affordable Living: Low costs attract long-term renters and buyers.
- Underrated Potential: Fewer investors mean more opportunities (Iowa Finance Authority).
18. New Mexico
Albuquerque’s affordability and rental demand place it among the top markets for wholesalers. New Mexico offers untapped potential.
Key Highlights:
- Consistent Demand: Albuquerque’s rental market remains stable.
- Affordable Properties: Low prices allow wholesalers to secure high margins.
- Emerging Market: New Mexico offers untapped potential (New Mexico Mortgage Finance Authority).
Conclusion
The best states to wholesale real estate in 2025 offer a mix of opportunity, affordability, and investor-friendly policies. Evaluate each state based on your strategy, and build relationships with buyers and sellers in these thriving markets.
For more insights, contact us at LeadsByAlex.com to discover how we can help you secure motivated seller leads in your target market!