Besides being the home of NASA, Texas is also famous for having one of the best house-flipping markets in the U.S. Properties in Texas are pretty affordable, and the real estate market seems to be a fertile ground for flipping houses in particular. However, finding a lucrative property deal is not easy. The competition is high for Texas house flippers and with each passing day, it’s getting harder to crack a good deal. The entire house flipping process requires you to carefully analyze the property market and invest adequate time, effort, and money.
Here in this guide, we will cover how to flip houses in Texas, whether it’s worth flipping houses in Texas, and the best cities to flip houses in Texas.
How to Flip Houses in Texas?
Although there’s no definite set of rules for flipping houses, there are a few essential things that you should keep in mind while stepping into the process.
- Pick an Ideal Location: The location of a property plays a key role in the flipping venture. It can actually make or break a fix and flip property deal! That’s why it’s important to pick an undervalued house in a location that has rising property values, accessibility to schools, and employment opportunities. All these considerations help a lot in maximizing profit margins.
- Gather Funds Beforehand: If you are an amateur house flipper in Texas, you may sometimes face difficulties in securing the funds you would need to start the flipping process. Hence, always ensure to secure financing if you are looking to flip houses in Texas. You may even apply for fix and flip loans in case you fall short of funds. Several lending companies provide real estate loans these days; just make sure to beware of fraudsters and scammers.
- Ensure Making a Profit: Given the complexities of a flipping process, you may tend to lose a track of your finances. Be mindful of spending on a fix and flip deal. Otherwise, you may end up spending more than you actually intended to. The best way to keep a track of your finances is by paying an upfront value of not more than 70% of a property’s ARV (After Repair Value).
- Hire a Realtor: Looking for Texas cities, counties, and neighborhoods can let you find the best place to flip houses in. However, it’s a time-consuming process and thus most house flippers choose to hire a knowledgeable realtor or real estate agency who knows the in and out of the Texas real estate market. Realtors can also help you locate profitable foreclosed properties that the market is yet to be aware of. Besides, they may also help you find great deals through real estate auctions.
- Keep a Realistic Approach: It’s essential to keep an open perspective while finding a fix and flip deal. Being honest and realistic throughout the flipping journey will let you prevent losses, stress, and other issues associated with the project. Several things make up a flipping process. So, you need to set a timeline for yourself as well as decide on the things you would like to get involved with. You may either choose to do everything by yourself, micromanaging every bit of the flipping process, or hire professionals to get the job done. No matter what you decide, just be patient, flexible, and open-minded with the process.
Now that you know how to flip houses in Texas, let’s find out if a fix and a flip deal is really profitable for real estate investors.
Are Flipping Houses Worthwhile in Texas?
Texas is a profitable flip state, having the best flipping markets in the U.S. The properties that often make a potential flip in Texas include foreclosure, short sale, pre-foreclosure, and distress sale property.
Here’s why flipping houses in Texas is profitable.
- Property Value: Texas homes cost much less than the average price of properties throughout the nation. Thus, homes in Texas are reasonably affordable for flipping.
- Good Place to Live: The quality of life in Texas is much higher than in other states in the U.S. It is the best place to live and thus flipping houses in Texas is worthwhile.
What are the Best Cities to Flip Houses in Texas?
- Austin
- Houston
- San Antonio
- Laredo
- Dallas Fort Worth
- El Paso
- Corpus Christi
Bottom Line
Now that you have read the entire blog, you know how to flip houses in Texas, whether flipping houses in Texas is profitable, and the best cities to invest in a flipping venture in Texas. The best advice for an amateur house flipper would be to hire an experienced realtor or real estate company that can help you understand every bit of the flipping process. Although Texas is a profitable state to flip properties, worthwhile flips completely depend on an investor’s skills, experience, efforts, and willingness to crack a lucrative deal.