Print this page

Fix and Flip Investing in the Texas Real Estate Market

Posted On Friday, 11 February 2022 14:56
Fix and Flip Investing in the Texas Real Estate Market

With a population of over 29 million, the Lone Star American state of Texas has been in the news for being one of the most profitable real estate markets in the country. The state of Texas is the second biggest state (in terms of landmass) in America, after the state of Alaska. 

In the last few years, the Texas housing market has experienced significant growth. Experts suggest that individuals, families, and businesses are making a beeline for the state for a higher standard of living, better quality of life, and a substantially lower cost of living. 

If you have been reading the news, you would have noticed articles on how Texas is attracting tech companies and start-ups that are escaping San Francisco because of higher taxation. This means that the time is right for real estate investors looking at fixing and flipping options. 

The Real Estate Growth in the Texas Housing Market

If property listing and buying site Zillow is to be believed, the average house prices for medium homes have increased by a whopping 20%. Data points to the fact that more and more families are moving to Texan cities like Dallas, Houston, San Antonio, and others from both the East as well as the West Coast. 

With an average property price that is lower than the American medium of $285K (the same in Texas is $213K), real estate investors looking to flip are cashing in on huge growth and profit margins. Another site, move.org pointed out that in 2020, Texas was the second-highest moved-to-state in the US. This trend is expected to sustain for the coming years. 

The rapid population growth coupled with the advent of better job opportunities and tech moves has helped create a sizable demand for house ownership in the state. It is mostly millennials that are moving to Texas in the post-COVID-19 pandemic period as they look to escape crowded cities and neighborhoods. 

Fixing and Flipping Houses in Texas: What you should know?

If you are a seasoned real estate investor or a novice looking to make a fast buck from a flip, Texas offers opportunities for both and a range of specialized fix and flip lenders with excellent track records. The best part is that the state fulfills the first criteria of successful fixing and flipping- location!

To highlight the location aspect, we have listed down three things that real estate investors looking to flip houses need to pay attention to in Texas:

  1. i. The desirability of the neighborhood- There is no harm in paying a bit extra for a rundown property in an exclusive Texas neighborhood. Start by comparing the price of the neighbor’s property. Also, look for schools and markets. If your initial purchase is low, you can spend on renovations and sell the finished property for a healthy profit. 
  2. ii. Select the type of property you want to flip- Many experts point out that prospective real estate investors should look for vacant homes or houses that have elder/senior inhabitants. This is because you can get the best deals from such properties. You just need to tidy it up a bit and make it attractive for new homebuyers. 
  3. iii. Check for up-and-coming areas and neighborhoods- Look at whether a big tech giant has opened its offices in the vicinity. Also, check if there is a huge government project that is underway. People who want to ensure that their real estate investments grow want to migrate to up-and-coming neighborhoods in Texas. 

The Types of Texas Homes and Styles that are Perfect for Fixing and Flipping

You need to understand that not all Texan homes are going to help you register profit margins. Doing your research and comparing property prices is critical to any successful fix and flip project. That being said, experts point out that there are some homes and architecture styles that command a premium over others when it comes to the real estate market in Texas. 

  • Ranch Style Architecture and Homes:

Texas is all about living life king size. There is no denying the fact that the Wild West has inspired house architecture in Texas. People want to move to large ranch style architecture homes in Texas. This style is not only aesthetically pleasing but also serves a critical purpose. The design helps to protect the home against the harsh heat and sun that Texas receives. 

  • Town Home Style Art Décor: 

Another construction style that is becoming increasingly popular among homebuyers in Texas is the Town Home Style. While this is not as old as the Ranch Style, you can think of this as a mid-modern kind of an aesthetic that is coming back in fashion. Homeowners, especially in cities like Dallas are looking for townhomes and mid-century architecture homes. 

The Final Takeaway

Almost all the cities in the state of Texas are set for a massive property boom. Whether you look at the major ones like Austin, Houston, San Antonio, or, explore options like Dallas Fort Worth or Corpus Christi, you can rest assured that by sticking to the basics, you will be able to turn over a decent profit by fixing and flipping real estate. If you have any specific questions that you would like us to address, please reach out to us in the comments section below. 

Rate this item
(0 votes)

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries