Fix and Flip Loans in Texas for Single-Family Property Now

Texas Fix & Flip Success in 2025: Profits & Market Trends

Texas flippers saw average gross profits near $64K in 2024, with Houston ZIP 77009 reporting $82K average per single-family flip. In 2025, strong buyer demand and tight inventory keep ROI opportunities high—especially for those leveraging fast, flexible fix & flip loans.

2025 Texas Fix & Flip Market Overview

• Median single-family acquisition cost: $181,000 statewide (Q1 2025)
• Average renovation budget: $52,000 for basic cosmetic rehabs; $85,000 for heavy rehabs (foundation, systems)
• Typical ARV (After-Repair Value): $295,000–$420,000 in top markets
• Average days on market (DOM): 28–39 days for flipped homes in Dallas, Houston, San Antonio
• Profit Margins: 19–27% (net after all costs)
• Comparison to National: Texas DOM is 15 days faster; rehab costs slightly lower than national average

How Texas Fix & Flip Loans Work

• Asset-Based Lending: Approval revolves around property ARV/rehab, not flipper income or credit alone
• LTC (Loan-to-Cost) Ratios: 80–90% of purchase + 90–100% of rehab costs for experienced flippers
• ARV Ratios: Typically up to 70–75% of ARV
• Interest Rates: 9.5–11.75% (as of Q2 2025), 2–3.5 points
• Fees: Origination, doc, appraisal—$2,000–$6,800 typical
• Bridge Term: 6, 9, 12, or 18 months (extendable to 24 months in rare cases)

Single-Family Flip Opportunities: Examples & ROI

• Houston (77009): Buy for $215,000, Rehab $62,000, ARV $385,000, Profit (before tax/closing): $58,000
• Dallas (75208): Buy $189,000, Rehab $48,000, ARV $318,000, Profit: $46,000
• San Antonio (78209): Buy $172,000, Rehab $44,000, ARV $298,000, Profit: $44,000

Renovation Cost Breakdown

• Kitchens: $16,000–$24,000
• Baths: $8,000–$15,000 each
• Roof/Systems: $12,000–$22,000
• Permitting/Inspection: $1,600–$3,200 (varies by city requirements)

Top Texas ZIP Codes for Profitable Flips

1. 77009 (Houston Heights)
2. 75208 (Oak Cliff, Dallas)
3. 75081 (Richardson)
4. 78745 (Austin)
5. 78209 (Alamo Heights, San Antonio)
6. 76107 (Fort Worth)

Each area offers active buyers, rapid DOM, strong school ratings, and ARVs above $300K for finished flips.

Local Contractor Costs

• General labor: $32–$48/hr
• Licensed trades: $72–$115/hr
• Rehab timeline: Avg. 7–10 weeks (cosmetic); up to 4 months (full gut)

Permits/Inspection

Houston and Dallas require plans for major systems; typical permit approvals within 10–15 business days. Always check local code for structural, roof/electrical, & resale regulations.

Texas Fix & Flip Lender Landscape

• Lima One Capital: 12-month Flex program, up to 90% LTC, min. FICO 660
• Kiavi: Rates from 9.5–12%, easy draw system
• RCN Capital: Lower points for experienced flippers
• Longleaf Lending: Texas-focused, quick close, foreign nationals OK
• Jet Lending: Houston-based, fast approvals, ARV-based loans
• Private Local Lenders: 10–12% rates, flexible terms, custom draw schedules

Current Texas Approval Rates

67–82% for single-family deals with a clear rehab scope and competitive ARV comps.

Step-by-Step Fix & Flip Financing Process in Texas

1. Identify property & sign purchase contract.
2. Obtain detailed rehab estimate from licensed Texas contractor.
3. Apply online—submit property info, budget, experience, borrower docs.
4. Lender orders appraisal/BPO, reviews ARV comps.
5. Title/insurance review, verify permits needed.
6. Get loan term sheet—review LTC/ARV/points.
7. Sign loan docs.
8. Close with title company/fund purchase.
9. Draw request for rehab phases, inspections as needed.
10. Complete rehab, market/list, exit: sell or refi.

Key Docs Required

• Purchase contract
• Detailed line-item rehab scope/budget
• Contractor license, insurance, W-9
• Flipper experience resume (if applicable)

Funding Timeline

7–14 days from full app to close. Same-day draws possible for approved phases.

Common Approval Challenges

• Low appraised ARV—resolve with strong comps, contractor verifications
• Permit delays—work with local expediter, keep timeline realistic
• Underbudgeted rehab—insist on detailed, materials/labor separated estimates

Texas Fix & Flip Success Example

• Location: 77009 Houston (Houston Heights)
• Purchase Price: $220,000
• Rehab Budget: $65,000 (kitchen, 2 baths, roof, floors)
• Loan (90% LTC): $256,500
• Total Out of Pocket (incl. fees, closing): $34,500
• ARV: $395,000 (comp-verified)
• Sell Price (after 1 DOM): $405,000
• Gross Profit: $80,500 (net profit $57,500 after closing and holding)
• Exit Strategy: Sold to owner-occupant, closed less than 45 days post-reno

✅ Real Estate Investor Resources

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

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  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!

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  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.

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  ✅ Small Business Resources 

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

  • SCORE Mentors (Free Mentoring & Workshops)
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• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

Quick turns and strong loans make Texas one of 2025’s hottest single-family flip markets.

Your Next Steps: Secure Fast Fix & Flip Funding

• Get pre-approved today—shop multiple Texas lenders
• Use solid comps, true-to-market rehab costs for approval
• Partner with licensed, local contractors
• Monitor DOM and adjust exit strategy as market shifts

Ready to maximize ROI? Contact us for same-day pre-approval and access the Texas fix & flip capital you need for 2025’s most promising flips.

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