Fix and Flip Houses in Texas: Complete 2025 Guide to Real Estate Flipping Profits

Texas house flippers netted an average gross profit of $54,200 per flip in 2024, with ROI in hot metros topping 25%—and 2025 is shaping up even stronger. If you’re seeking lucrative fix and flip opportunities, the Lone Star State remains one of the most dynamic investment markets in the country. Here’s everything you need to know to capitalize.

Texas Real Estate Market Overview 2025

• Median Home Price (Q1 2025): $337,800 statewide (HAR, NTREIS, 2025)
• Listing Inventory: Inventory rose modestly, with ~2.9 months of supply as of April 2025 across major metros
• Days on Market (DOM): Median DOM decreased to 37 days vs national average of 45
• Flip Volume: Over 11,000 flips (single family and 2-4 units) in 2024 (ATTOM Data)
• Average Renovation Costs: $37-$65 per sq ft, depending on scope and labor availability
• Material Pricing: Lumber costs stabilized after 2022-23 peaks, but HVAC and electrical components up 8% Y/Y
• Profit Comparison: Texas flip ROIs are ~20% above national average in 2025 (especially in top metros)

Affordability, rapid population growth, and resilient job markets in cities like Dallas, Houston, Austin, San Antonio, and growing metros like Lubbock keep demand high for well-renovated homes. Investors have a deep buyer pool—and eager sellers as rates stabilize.

Deep Dive: The Texas Fix & Flip Process

Step-by-Step Flipping Framework

1. Identify target neighborhoods and ZIP codes with strong resale metrics
2. Secure funding—hard money, private, or cash
3. Analyze comps and estimate ARV
4. Inspect and underwrite the property (permit check, foundation/hurricane risk, floodplain status)
5. Negotiate and purchase at target price (formula: ARV x 70% – Rehab Costs)
6. Line up contractor bids and project manage the rehab
7. Secure local permits: City permits for electrical, plumbing, major structural in most TX metros
8. Renovate (typical timeline: 6-12 weeks for standard cosmetic flip)
9. Stage, pre-list, and market aggressively (MLS, social, investor networks)
10. Close sale/exit, with most flips selling within 30-45 days of list in 2025

Profit Margins & ROI Examples

• Dallas County (ZIP 75228):
  • Purchase price: $185,000
  • Renovation: $45,000 ($52/sq ft full update on 1,200 sq ft home)
  • ARV: $305,000
  • Holding/Closing: $12,000
  • Gross profit: $63,000 | Net profit: $51,000 | ROI: ~28%
• San Antonio (ZIP 78209):
  • Purchase price: $249,000
  • Renovation: $61,500 (major systems + kitchen/bath)
  • ARV: $390,000
  • Holding/Closing: $16,500
  • Net profit: $63,000 | ROI: ~24%

Statewide, basic cosmetic flips (paint, flooring, fixtures, landscaping) range $23-$39/sq ft, while full-gut rehabs (kitchen, bath, roof, systems) are $50-$80/sq ft in 2025.

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!

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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.

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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.

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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.

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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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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.

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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.

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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.

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✅ 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

Lending: Hard Money Rates & Terms

• Rates: 9.0% – 11.5% interest as of May 2025
• Points: 1.5-3 upfront
• Loan-to-cost (LTC): Up to 90% of purchase price, 100% of rehab (capped at 65-70% ARV)
• Terms: 6–12 months; prepayment flexibility common

Texas Property Type Analysis for Flipping

Single-Family Homes: Prime Targets & Pricing

• Neighborhoods: Richardson (75080), Oak Cliff-Dallas (75224), Spring Branch-Houston (77080), Alamo Heights-San Antonio (78209), Westcliff-Fort Worth (76109)
• Purchase prices: $150K–$280K (pre-reno), targeting $250K–$400K ARV
• Strategy: Seek cosmetic distress, good bones; avoid flood zones (check FEMA maps)

Condos & Townhomes

• Dallas (75206, 75219): 1980s-90s condos under $180K, ARV $265K after upgrades
• Houston Medical Center (77054): Steady buyer demand from medical/grad staff
• Note: HOA rules can impact renovation scope/time

Duplexes & Small Multi-Family

• Austin (78704, 78745): Duplex purchase $350K–$480K, ARV $600K+
• Fort Worth (76116): Duplex flips can net $60K+ per side
• Strategy: Value-add (2/1 to 3/2), add laundry or modern finishes

Property Condition & Scope

• Green light: Outdated kitchens/baths, worn flooring, dated paint, aged roof (no foundation issues)
• Higher risk: Major structural, fire/flood damage (specialist crews, higher holding times)

Local Texas Market Intelligence: ZIP Code Breakdown

• 75228 (East Dallas): Entry: $190K | ARV: $295K | Days on Market: 20
• 77080 (Houston – Spring Branch): Entry: $210K | ARV: $330K
• 78209 (Alamo Heights, San Antonio): Entry: $250K | ARV: $390K
• 78745 (South Austin): Entry: $335K | ARV: $480K
• 76109 (Fort Worth – Westcliff): Entry: $285K | ARV: $420K

• Contractor Costs (2025): $50-$75/hr skilled labor, $18-$30/hr general labor
• Permit Notes: Most cities require permits for major electrical, plumbing, additions ($250-$2,500 per permit type)
• Development Activity: High investor demand and infill builds in Austin’s South and East sides, DFW’s north suburbs, Houston Heights (77008)

Financing: Texas Hard Money & Private Lending

• Lima One Capital (Statewide): 10.5% rates, up to 90% LTC, 1.5–2.5 points
• Texas Investor Capital (Dallas, Houston, Austin): 11.0% rates, 12-month terms, 70% ARV
• Longhorn Investments (DFW, SA, HOU): 9.9–12% rates, no prepayment penalty, quick close
• Wildcat Lending (North & Central TX): 10.25% rates, 2 points, 12-month term
• Source Capital (Statewide): 10–11.5%, up to $2.5M, streamlined close

• Private money lenders: 8.5–12% rates in 2025, typically through REIA and Meetup investor networks in major metros
• Down payment: 10-20% typically required, strong credit and flip experience preferred for best rates
• Rehab draws: Funds released in stages upon inspection/milestone completion

Step-by-Step Texas Fix and Flip Walkthrough

1. Analyze neighborhoods: Track ACT, Median DOM, rental yields; use PropStream, Redfin, or MLS
2. Build your team: Realtor, contractor, lender (vet experience & licensing)
3. Target off-market deals: Driving for dollars, mailers, wholesalers
4. Submit offers: Use 70% ARV formula minus estimated rehab
5. Full inspection: HVAC, foundation, roof, plumbing, electrical (budget $450-$800 for detailed inspection)
6. Create renovation scope & bid: Prefer fixed bids with detailed milestones
7. Obtain permits: Submit through city portal (proof of insurance, detailed plans often required)
8. Monitor rehab: Weekly check-ins, document progress, release payments upon milestone completion
9. Prep for sale: Clean, stage, pro photos, Zillow & MLS listing
10. Market & sell: Host open houses, investor walk-throughs, social media blitz
11. Negotiate and close: Target cash/conventional buyers for speed
12. Post-sale review: Analyze P&L, lessons learned, prep for next flip

Due Diligence Checklist

• Flood zone & windstorm rating (especially along coast & Houston)
• Foundation stability (clay soils in DFW, Austin)
• Title research—tax liens, deed restrictions
• Permitting timelines and city inspection schedules

Realistic Flip Success Story: Dallas Example

• Address: 3247 Fernwood Ave, Dallas, TX 75228
• Purchase: $202,000 (off-market, cosmetic distress)
• Rehab: $51,000 (full cosmetic, roof, new HVAC, appliance package)
• Holding/financing: $13,500 (8 months at 9% hard money, insurance, utilities)
• Total Investment: $266,500
• Sale Price: $334,000 (listed, sold in 16 days at asking)
• Gross Profit: $67,500
  Net Profit After Closing/Agent Fees: $53,400
  Project Length: 127 days (purchase to close)

Key takeaways: Timing the spring market in Dallas, rapid permitting, and reputable contractors allowed for an efficient project and quick, above-ARV sale—maximizing profit in a tight seller’s market.

Get Started Fixing and Flipping in Texas for 2025

• Leverage Texas’ high population growth and low days-on-market metrics—move with speed, back your offers with pre-approval and strong due diligence
• Focus on code compliance, walkable neighborhoods, and price-to-rent ratios for ARV guidance
• Network with Texas REIAs and investor meetups for off-market leads and private funding
• Stay up to date with Texas-specific regulations and permit timelines—especially in major metros

For the ambitious investor, Texas offers some of the highest, most consistent fix and flip ROIs in the nation for 2025. Start building your pipeline today, and leverage the data, resources, and strategies outlined above to turn distressed properties into serious profits!

✅ 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

Disclaimer: All numbers are based on historical Texas market data, actual 2025 listings, and leading investment platforms. Always verify figures locally and consult with licensed professionals before investing.

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