Fix N Flip Houses in Texas for Profit Now

Unlocking Texas Fix and Flip Profits in 2025

Few states rival Texas for fix and flip profit potential in 2025. Investors are regularly seeing gross profits between $45,000 and $82,000 per project, fueled by strong buyer demand and expanding metro markets. From Dallas-Fort Worth to Houston and San Antonio, the Texas housing market remains one of the nation’s hottest for ambitious house flippers seeking scale, stability, and strong ROI.

Texas Market Overview: 2025 Trends & Investor Insights

• Median Home Price (TX, Q1 2025): $346,500 (up 3.1% YoY)
• Average Days on Market (DOM): 34 (down from 44 in 2023)
• Inventory Levels: Tight, with some relief in major metros like Dallas (2.3 months of supply), Houston (2.8 months)
• Renovation Costs per SqFt: $44-60 for cosmetic updates, $85-110 for full gut renovations
• Average Flip ROI (2024-2025): 19%-29% vs. US average of 17.5%

Material costs remain elevated but relatively stable: drywall ($13/sheet), lumber ($550/1000 board ft), and HVAC installs ($6,000-$12,000 system average). As labor markets stabilize, many Texas flippers are shaving weeks off project timelines compared to national competitors.

Fix & Flip Strategy Deep Dive

1. The Texas Fix & Flip Process

1. Identify undervalued, structurally sound properties in appreciating neighborhoods
2. Secure acquisition with below-market purchase (target 65-75% of ARV minus rehab costs)
3. Execute cost-conscious renovations focusing on kitchens, baths, flooring, and curb appeal
4. Strategically price and market for a rapid resale, leveraging local agent networks

2. Profit Margins & ROI Examples

Typical 2025 numbers (Dallas County):

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Navigating SBA 7(a) Loans: An Essential Quiz for Small Business Owners

Test your knowledge on the SBA's most popular loan program, designed to fuel business growth and expansion - SBA 7(a) Loans!

Start Quiz

Page 1 of 5

What is the SBA 7(a) Loan program, and how does it facilitate small business growth and development within the United States economy? a) The SBA 7(a) Loan program is a direct lending initiative by the Small Business Administration, providing government-backed loans with fixed interest rates and repayment terms, specifically designed to support the operational needs of startups and established small businesses, thereby fostering economic growth by enabling access to capital that might not be available through conventional banking channels. b) The SBA 7(a) Loan program acts as a guarantor, partnering with participating banks and credit unions to reduce their risk in lending to small businesses; this guarantee allows these financial institutions to offer more favorable terms, such as lower interest rates and extended repayment periods, ultimately stimulating entrepreneurship and job creation across various sectors of the U.S. economy. c) The SBA 7(a) Loan program is a federal grant program that provides funding to small businesses without requiring repayment, aimed at promoting innovation and research and development within key industries to enhance the competitive edge of American small businesses in the global market. d) The SBA 7(a) Loan program is a venture capital fund managed by the Small Business Administration, investing directly in high-growth potential startups in exchange for equity, focusing on technology and manufacturing sectors to drive economic expansion and technological advancement.

Page 2 of 5

What are the typical eligibility requirements for securing an SBA 7(a) Loan, and how do these criteria ensure that the funds are directed towards viable small businesses with the potential for long-term success? a) Eligibility for an SBA 7(a) Loan primarily depends on the applicant's credit score and the submission of a comprehensive business plan, with a minimum credit score of 700 required to demonstrate financial responsibility and a detailed plan to outline the business's operational strategies and financial projections, ensuring the SBA's investment is in well-managed and strategically planned ventures. b) The SBA 7(a) Loan eligibility criteria include the business's operational history, typically requiring at least two years of operation to establish a track record, the applicant's personal investment in the business to ensure commitment, and demonstration of sufficient cash flow to manage loan repayments, all aimed at mitigating risk and supporting businesses with proven sustainability. c) To qualify for an SBA 7(a) Loan, applicants must present collateral valued at least equal to the loan amount to secure the loan, undergo a rigorous background check to ensure no prior financial misconduct, and provide audited financial statements for the past three years to verify financial stability and operational transparency. d) SBA 7(a) Loan eligibility is determined by a lottery system, where all applicants meeting basic criteria such as having a registered business and a valid tax ID are entered into a random selection process, reflecting the SBA's commitment to equitable access to funding for all small businesses regardless of their financial history or business scale.

Page 3 of 5

How can small businesses utilize funds obtained through the SBA 7(a) Loan program, and what specific expenditures qualify under the program’s guidelines to support business operations and expansion? a) SBA 7(a) Loan funds can be used for a wide array of business needs, including purchasing real estate to establish a physical presence, acquiring equipment to enhance operational efficiency, covering working capital to manage day-to-day expenses, and refinancing existing debt to improve cash flow, providing comprehensive financial support for various stages of business development. b) The SBA 7(a) Loan program restricts the use of funds to marketing and advertising campaigns aimed at increasing brand awareness, covering employee salaries to maintain staffing levels, and investing in research and development to innovate new products or services, focusing on stimulating demand and operational capacity. c) Funds from an SBA 7(a) Loan are exclusively designated for international expansion efforts, such as establishing overseas offices, funding export activities, and covering legal fees associated with international trade compliance, to support small businesses in accessing global markets. d) SBA 7(a) Loan funds are limited to investments in the stock market to generate additional revenue for the business, covering personal expenses of the business owner to ensure financial stability, and contributing to political campaigns to influence policy favorable to small businesses.

Page 4 of 5

What are the key differences between the SBA 7(a) Loan program and other SBA loan programs, such as the 504 Loan Program or the Microloan Program, and how do these distinctions cater to the diverse financing needs of small businesses? a) The SBA 7(a) Loan is designed for broader purposes, including working capital and debt refinancing, while the 504 Loan Program focuses on real estate and equipment purchases, and the Microloan Program offers smaller loans for startups and very small businesses, each tailored to specific financial requirements and stages of business development. b) Unlike the SBA 7(a) Loan, which requires extensive documentation and a rigorous approval process, the 504 Loan Program offers expedited approval with minimal paperwork, and the Microloan Program is exclusively available to non-profit organizations and cooperatives, reflecting the SBA's diverse support mechanisms for various business structures. c) The SBA 7(a) Loan program is the only SBA initiative that provides direct funding without involving third-party lenders, whereas the 504 Loan Program operates as a grant program with no repayment required, and the Microloan Program is specifically designed for businesses in the technology sector with high-growth potential. d) While the SBA 7(a) Loan program is characterized by its variable interest rates, the 504 Loan Program offers fixed rates, and the Microloan Program is unique in that it allows funds to be used for personal expenses of the business owner, showcasing the SBA's flexible approach to meet varied financial needs.

Page 5 of 5

How does the SBA 7(a) Loan program contribute to job creation and economic stability within local communities, and what are some examples of businesses that have successfully utilized this program to achieve significant growth and impact? a) The SBA 7(a) Loan program stimulates job creation by enabling small businesses to expand operations, hire more employees, and invest in employee training, thereby reducing unemployment rates and fostering economic stability in local communities; examples include manufacturing companies that have scaled up production, retail businesses that have opened new locations, and tech startups that have commercialized innovative products. b) The SBA 7(a) Loan program primarily supports the arts and culture sector by providing funding for museums, theaters, and galleries, thereby enhancing the cultural landscape of communities without direct impact on job creation or broad economic stability. c) Through the SBA 7(a) Loan program, funds are directed towards lobbying efforts to influence government policies, which, while beneficial to small businesses, does not directly translate into job creation or community economic stability. d) The SBA 7(a) Loan program focuses on providing financial assistance to large corporations rather than small businesses, which, while contributing to the national economy, has limited impact on job creation and economic stability at the local community level.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

Start Quiz

Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

Page 2 of 5

How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

Page 3 of 5

What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

Page 5 of 5

Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

• Purchase Price: $240,000
• Renovation Budget: $55,000
• ARV: $360,000
• Gross Profit: $360,000 – ($240,000 + $55,000 + $18,000 closing/holding) = $47,000
• Timeline: 10-16 weeks
• Annualized ROI: 24-28%

Fort Worth, Houston, and parts of San Antonio yield similar margins, with slight variations based on property type and neighborhood.

3. Texas Hard Money Lending Rates (2025)

• Rates: 9.25% – 11.99% (average)
• Points: 2-3
• Loan-to-Cost: 85%-90%
• Typical Terms: 12 months, interest-only, minimal prepay penalty

Property Type Analysis: Opportunities & Risks

Single-Family Homes

• Best Neighborhoods: Richardson (75080), Oak Cliff (75208), Woodlands (77381), Alamo Heights (78209)
• Target Price Points: $175,000 – $325,000

Condos & Townhomes

• Houston Galleria Condos: 77056, $120,000 purchase, $35,000 reno, $195,000 resale
• Austin Suburban Townhomes: Pflugerville (78660), $185,000-$225,000 ARV

Condos offer lower risk in established urban corridors but require sharp HOA due diligence.

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Small Multi-Family (Duplex/Triplex)

• Hot ZIPs: Garland (75042), San Antonio (78216)
• Purchase: $250,000, Rehab: $65,000, ARV: $400,000

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

Duplex flips can outperform SFRs when repositioned for rental investors or FHA buyers.

Property Condition & Renovation Scope

• Structural soundness: slab/foundation cost in TX: $6,500-$21,000
• Cosmetic: Kitchen ($15k-$28k), Bath ($7.5k-$11k), Flooring ($4k-$8k whole-house)
• Roof: $6,000-$10,000

Local Market Intelligence: Where to Flip in Texas Now

Top ZIP Codes with Flip Momentum

• Dallas (75228): $192k purchase | $56k renovation | $310k sale
• Houston (77009): Heights/Brooksmith, $220k buy | $70k rehab | $365k ARV
• San Antonio (78213): $170k buy | $40k rehab | $265k ARV
• Austin (78745): $285k buy | $75k rehab | $435k ARV
• Fort Worth (76116): $198k buy | $45k rehab | $305k exit
• Plano (75023): $260k buy | $55k rehab | $420k ARV
• Arlington (76013): $225k buy | $50k rehab | $345k ARV
• Galveston (77551): $210k buy | $42k rehab | $317k ARV

Neighborhoods to Watch

• East Dallas: Proximity to development and consistent demand
• Inner Loop Houston: Newly gentrifying, strong buyer demographics
• South Austin: Tech migration driving premium resale

Local Permit Requirements: Texas cities require permits for all major electrical, HVAC, plumbing, and structural work. Typical turnaround is 10-25 days. Budget $3,000-$7,000 for permit and inspection fees in large metros.

Contractor Costs: General contractors in TX: $42-$56/hour labor; electricians $75/hr; licensed plumbers $85/hr.

Financing Landscape: Lenders & Funding Your Flip

Top Hard Money Lenders in Texas (2025)

• LendingOne: Rates from 10.25%, up to 85% LTC
• Residential Capital Partners: 9.95%-11.5% rates, 2 pts, statewide
• Longhorn Investments: Up to 90% purchase/100% rehab, 3 pts
• ZeusLending: Fix and flip loans up to 75% ARV
• DFW Investors: Local private capital, 10-14% rates, fast closes

Private Money and Investor Networks

Join Texas REIAs in major metros, as well as online groups like ‘Houston Real Estate Investing’ for off-market funding and deal partners.

Loan Terms & Qualifications

• LTV: 70-75% max for new investors, up to 85% for experienced flippers
• Rehab reimbursement: Held in draws, must document progress
• Minimum credit: 620-650
• Down payment: 10-15%+ closing/soft costs

Step-by-Step Texas House Flip Process

1. Market Research: Analyze ZIP codes, ARVs, days on market using MLS/PropStream.
2. Deal Sourcing: Leverage wholesalers, auctions, off-market lists.
3. Property Evaluation: Walk-thru with contractor, use detailed checklist (foundation, roof, major systems, walls, legal survey).
4. Offer Submission: Lock best deals with contingencies and short inspection windows.
5. Secure Financing: Line up hard or private money, submit lender-required budget & scope.
6. Closing: Rapid close, transfer utilities, verify insurance coverage.
7. Renovation: Schedule in phases (demo, rough-in, finishes). Inspect at each stage.
8. Permitting: File for city permits; coordinate inspections per local codes.
9. Quality Control: Punch list with contractor before final payment.
10. Staging & Marketing: Professional photos, agent listing, open houses.
11. Resale/Exit: Aggressively negotiate buyer offers for rapid close.
12. ROI Calculation: Monitor final settlement statement and evaluate project performance.

Pro Tip: Always buffer 10-13% in your rehab budget for surprise repairs and scope creep on Texas homes.

Success Story: Dallas Flip Case Study (2025)

• Neighborhood: Lake Highlands (75238)
• Purchase Price: $252,000
• Renovation: $64,000 (kitchen/bath full redo, all flooring, minor foundation, roof)
• Acquisition + Holding & Loan Costs: $18,750 (closing, 5 months at 11% interest, insurance, utilities)
• All-in: $334,750
• Sale Price: $419,000 (within 16 days of listing)
• Net Profit (after agent commissions): $48,890
• Timeline: 4.5 months holding, 6.5 months start-to-finish

Timing this project with a spring listing meant multiple offers above list, offsetting increased rehab costs and higher lender points.

Getting Started: Keys to Texas Flip Success in 2025

• Study your target ZIPs using MLS, Redfin, and county sales data
• Network with local contractors, agents, and lenders
• Run conservative numbers using 70% Rule and always walk every property

Ready to start your Texas fix and flip journey? Evaluate off-market deals, vet funding sources, and assemble your local team so you can capitalize on this year’s prime profit windows. The Texas market rewards well-prepared, decisive investors—take action before the next wave of demand arrives.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

See Full Bio

DSCR LOAN SBA LOAN BRIDGE LOAN