Flipping Houses In Texas: 5 Best Cities & Tips To Flip

Are you familiar with the Texas housing market and want to turn your knowledge into cash? You might have found your true calling, flipping houses in Texas.

House-flipping is a great way to earn sums of five, six, and sometimes seven figures, but you must have access to a good crew, study fluctuations in the market, and learn to manage your profits so you don’t spend all of what you earned on the next home.

This guide will fully explain house flipping in Texas so you can decide if it’s a worthwhile venture for your next gig. 

Why Should You Consider Flipping Houses in Texas? 

Flipping homes in Texas looks simple on the surface, but is it all what it seems? This section will unpack the pros of this gig. 

Autonomy 

Flipping homes grants you the freedom to work your way on your schedule and never be micromanaged by a boss again.

The entire process is in your control. You determine which homes to target, how much to spend, what repairs will be done and when, who will do them, and what the new house price will be.

Having this much freedom can be scary for beginners, but once you gain house-flipping experience, you likely won’t imagine working any other way.

Networking Opportunities 

Flipping houses in Texas is a social job. You have your house repair crew, real estate investors, and probably a few legal connections. You can continue to expand your social horizons as you meet new partners, buyers, and fellow flippers.

You never know which of these parties might have the next lucrative flipping opportunity they’re eager to share with you.

Part-Time or Full-Time Work 

The flexibility of flipping homes makes it an attractive prospect to many. You can make a decent chunk of change flipping part-time. You’ll spend the bulk of your time on projects in the evenings and on weekends.

You won’t earn as much as somebody who flips full-time, but if you still maintain a nine-to-five job and flip as your side hustle, you’re not as dependent on the money. 

The biggest risk of flipping homes part-time is becoming burnt out from working all the time between your flipping endeavors and your full-time job.

Full-time house flipping grants you more time and opportunities. You will increase your income potential compared to a part-time flipper. However, you should have experience flipping homes in the area before making the move to full-time work. 

Can Earn a High-Profit Margin

If you’ve watched enough house-flipping shows, you’re convinced you’ve found your next calling, you might be right. 

The average home in Texas is valued at about $327k and sells for about $25,000 less. That might sound like a lot of money to miss out on, but you’re recouping $22,829 per home if your flipped properties sell at the average Texas resale value.

Is Flipping Houses in Texas Profitable? 

House Value in Texas	House Resale Value in Texas	Average Income in Texas	Homes Available in Texas (2023)	Texas Population
$326,800	$303,971	$52,186	79,662	31,172,832

Motley Fool reports that the average gross ROI on homes flipped in Texas is 11.60 percent. That’s below the national average, which is 26.9 percent. Texas doesn’t have the lowest ROI on flipped homes in the country – that honor goes to Hawaii, which has an ROI rate of 10 percent, and Montana, which has 10.30 percent.

However, when you consider that states like Pennsylvania boast an average gross ROI of 75.20 percent, Virginia 55 percent, New Jersey 55.10 percent, and Delaware a whopping 96.10 percent, you can see how low the ROI is in Texas.

Best 5 Cities to Flip a Home in Texas

After carefully weighing the pros and cons, you’ve decided you still want to flip homes in Texas. Target the following markets to begin generating a profit. 

Austin

The state capital and the nexus of rock, blues, and country music, Austin has a bustling social scene, a vibrant downtown, and attractions from the Texas Capitol to Zilker Metropolitan Park and McKinney Falls State Park.

The Live Music Capital of the World, as it’s known, is on many people’s radars, including house flippers. 

That can explain why the average value of a home in Austin is high. Interestingly, it’s neither a buyer nor seller’s market here, giving house flippers a chance to capitalize and grow the market in their favor.

Median property price: $570,189 (RocketHomes)

Year-over-year property value growth: 2.5 percent (Norada) 

Year-over-year population growth: 2.39 percent (MacroTrends)

Dallas

Dallas is a buzzing metropolis. Its downtown lays out much of the state’s illustrious history and is also known as a cultural and commercial intersection. Famous for its sports teams, southern cuisine, and music and arts scene that rivals Austin’s, there’s something for everyone in Dallas.

It’s renowned for its inexpensive homes, bright culture, and strong economy. Residents should expect traffic snarls and unyielding heat, although this is the case across much of the southern US.

Median property price: $418,000 (Bankrate)

Year-over-year property value growth: 5.2 percent (US News)

Year-over-year population growth: 1.33 percent (MacroTrends)

San Antonio

The vibrant city of San Antonio in the southern-central part of Texas is the only place to see the Alamo. It also has modern charms, from the San Antonio Zoo to the San Antonio RiverWalk and its own Six Flags theme park.

Prices here take a dip compared to the other parts of Texas. A home in San Antonio sells for under the state average. That doesn’t mean house flippers should keep looking – San Antonio is beloved for its laid-back atmosphere, delicious food, and high safety rating. 

Median property price: $291,330 (Rocket Mortgage)

Year-over-year property value growth: 7.1 percent (Rocket Mortgage)

Year-over-year population growth: 1.70 percent (MacroTrends)

El Paso

Straddling the border between the US and Mexico, El Paso is always worth a visit. Many who come here find reasons to stay, including its proximity to the Rio Grande River, Spanish art museums, Mexican dining, and proud heritage.

The blending of American and Mexican cultures within the border of the US makes living in El Paso, unlike any other experience in Texas. Homes sell here for under the state average, but house flippers can still earn good money.

Median property price: $299,000 (Realtor.com)

Year-over-year property value growth: 6.8 percent (Zillow)

Year-over-year population growth: 1.13 percent (MacroTrends)

Houston

A sizable metropolis rivaling Dallas, Houston is esteemed for its Space Center Houston, where NASA astronauts train. Besides that interesting bit of culture, Houston offers many museums, exciting contributions to the energy industry, fine dining, and family entertainment. 

That’s why it’s surprising that the home values here are about average. However, you have many reasons to call Houston home, including affordable housing, a reasonable cost of living, and plenty of diversity. 

Median property price: $334,900 (Redfin)

Year-over-year property value growth: 3.6 percent (Houston Chronicle)

Year-over-year population growth: 1.58 percent (MacroTrends)

How to Start Flipping Houses in Texas: 5 Steps

If you’re ready to begin flipping homes in Texas, don’t miss these detailed steps on how it’s done. 

Step 1: Master the Housing Market

With the ROI rate per home flipped already so much lower in Texas than in other parts of the country, you can’t afford to waste your money or time on duds. You must know the housing market like the back of your hand to sniff out the most lucrative deals.

Here are some pointers that will help you:

• Look at historical data. What’s old usually becomes new again.
• Review trends, but don’t hang your hat on them.
• Find the most popular markets, whether a specific buying group, a city or town, or a type of home.

Step 2: Review Available Properties

Work with wholesalers near you who can help you find homes in your desired market. Using real estate websites like Zillow is a great way to end up empty-handed, as the most popular properties disappear quickly.

What makes a home valuable comes down to more than square footage. A home should also be located in a safe neighborhood with a low crime rate. 

Homes close to schools will appeal to families, while younger buyers might prioritize proximity to entertainment options like movie theaters, shopping, and bars and restaurants. 

Step 3: Build Your Budget

What can you afford to spend on a home in Texas? Depending on your answer, you might supplement the cash with a loan. Consider that you’re not only spending money to buy a home but repairing it. That will require materials and a crew. 

You will also likely hire a realtor’s services to help you list a home, so you will need thousands of dollars (possibly tens of thousands, depending on the state of the home you buy) extra. 

Step 4: Tour, Inspect, and Buy a Home

You should still treat buying a home the way any buyer would. You don’t need yours to be perfect, but there are different levels of disarray.

For example, threadbare carpeting, ugly wallpapering, and outdated countertops are cosmetic issues you can fix without much capital. However, issues with the bones of the home are much more expensive. 

You could sink tens of thousands into the home only to make $300,000 on it. You’re losing money when you take those kinds of deals.

Pay for an inspection if you’re serious about the home. You will get better at discerning issues with properties the longer you flip homes in Texas, but an inspector goes beyond the visual, testing for issues you’ll want to know about. 

If the inspection results are to your satisfaction, close the deal. 

Step 5: Fix Up the New Home, Re-list, and Profit 

It’s time to gather your crew unless you’re a one-(wo)man construction operation. You will need HVAC specialists, electricians, plumbers, landscapers, and interior designers. The crew will work its magic, restoring the home so it’s ready for market. 

Take appealing photos of the home and write an evocative listing. This time, you should use traditional home-buying and selling resources like Zillow, Trulia, and Realtor.com to post your listing, as this is where your audience will search.

You should begin getting offers shortly after that. Accept the most profitable offer and repeat the process to begin flipping your next home. 

How Much Does It Cost to Flip Houses in Texas? 

The average market value of a home purchased in Texas is $326,800, so you must have at least that much capital available to begin flipping in the Lone Star State. The money can come out of your pocket or through crowdfunding and loans.

You should be ready to pay escrow fees and closing costs when purchasing a home, but your dollar must stretch further. You’ll pay your attorney, real estate agents, and construction crew. You’ll also pay for the materials to rebuild the house, from paint to insulation, wooden construction, siding, shingles, and more. 

Is the Current Housing Market Good in Texas? 

The Texas real estate market is healthy, with almost 80,000 homes available in 2023. Properties spend about 100 days on the market. That’s only somewhat higher than the national average of 83 days.

You can make a decent living flipping homes in the Lone Star State, but don’t let that distract from the fact that this state’s ROI for flipped homes is substantially lower than most others in the country.

Many southern states suffer from a low gross ROI, so this issue isn’t exclusive to Texas. With an average ROI of 20 to 30 percent in the US, you could consider other far more profitable states. Even so, depending on your access to the market and the time you’ll invest in your efforts, your potential revenue could be quite generous.

Do You Need a License to Flip Houses in Texas? 

Flipping homes in Texas does not require a license, further reducing the barrier to entry. The credit score requirements aren’t high in this state either. 

Since you don’t need a license to flip houses, you don’t need to hire a real estate investor or agent. In states where you must have a license, you have to choose between foregoing the license and hiring a real estate agent (losing money in the process) or limiting your flipping potential by not obtaining a license. 

Other States to Look At for Profitable House Flipping

Texas isn’t the only viable state for house flipping. Consider these states:

• Flipping Houses in Oklahoma: The average profit margin to flip houses in Oklahoma is 38.60 percent, far higher than what you’ll earn in Texas.
• Flipping houses in California: The gross profit to flip houses in California is a decent 14.90 percent. See why real estate investors flock here.  
• Flipping houses in Arkansas: A little further north, house flippers earn a gross profit of 37.90 percent in Arkansas, a market value compared to flipping in Texas. 

Wrapping Up 

Flipping houses in Texas might generate a lower profit margin than other states (although not in the South), but you can still make about $300k per home, which is no small sum. The Texas real estate market is healthy, enabling you to make your house flip dreams come true. 

You can begin house flipping part-time or jump right into full-time work. You must manage your money carefully and select properties strategically to generate income in the real estate market.