House flippers in 2019 saw an average gross profit of $60,000. The averages in Texas cities for fix-n-flip are in line with national averages. Although the housing market shows a slight decrease in home purchases from the previous year, house flipping remains a stable and robust industry. For those willing to put in the work and make smart, rational decisions, house flipping can be incredibly profitable.
Many factors help a house flip go well, including knowledge of the market and a speedy timeline. Today in the U.S., the average timeframe for a house-flip completion is 180 days. One critical trend is that the millennial generation is becoming a bigger portion of the homebuying population. This development is excellent news for home flippers because millennials are looking to purchase homes that require minimal work for themselves.
Texas is one of the best markets for fix-n-flips. This trend is a result of Texas cities trending upwards in home value and quality of life, with current home values fair or low priced and low remodeling costs. However, investors find the best returns on investment in developing markets that are not yet saturated.
Best Cities in Texas for House Flipping
We’ve compiled this list of emerging Texas cities for house flippers. Check out the details and see where you might want to make your next house-flipping purchase.
1. Houston – Median Home Value = $189,300.
The Houston housing market presents very unique opportunities. While the median housing price is high, the flood damage in recent years has resulted in many investors acquiring homes at incredibly low prices. These options make Houston one of the best Texas cities for fix-n-flip investments. Be prepared to spend more capital on renovations to repair the flood damage, but the returns are outstanding.
2. El Paso – Median Home Value = $134,500.
Low current home values and low renovation and remodeling costs work in tandem to help investors realize considerable returns. With a sizeable population of over 600,000 and projected growth, this city has notable market potential. Surveys have recognized El Paso as the 5th best place to retire in the nation. Zillow.com expects the median home prices to continue rising and label this city as a “Very Hot” market.
3. San Antonio – Median Home Value = $184,300.
San Antonio, one of the nation’s fastest-growing cities, has been going through major gentrification developments in recent years. One neighborhood was in the top ten fastest-gentrifying neighborhoods in the nation. Home prices in this neighborhood have soared in the past five years. Many experts believe this neighborhood is the first of what’s to come for the rest of the city.
4. Killeen – Median Home Value = $150,000.
Migration from Austin due to the high cost of living has driven up demand for homes in Killeen. General Dynamics and Fort Hood bring in engineers and soldiers, respectively. Experts project the population to double by 2050. Zillow.com lists Killeen as a “Very Hot” homebuying market.
5. Grand Prairie and Arlington – Median Home Value = $216,700.
These two cities are located next to each other in between Dallas and Fort Worth. The high quality of life both cities report makes them prime targets for house flippers to watch. Growth for these cities includes many higher-income earners from the nearby major metro area, making it ideal for selling higher-value homes.
6. Corpus Christi – Median Home Value = $155,400.
This “Hot” market has low renovation and remodeling costs. That fact, combined with the low median home value, makes this city perfect for investors who want to invest a smaller portion of their cash. Investors can even look for beachfront properties or homes that are merely a short distance to the water.
7. Lubbock – Median Home Value = $145,600.
This college town is enjoying a boom in population largely due to growth from the major university in town. However, as many graduates continue to live in Lubbock, and with low remodeling costs, the housing market is flourishing.
How You Can Cash In On Growing Real Estate Markets
Fix-n-flips are a great way to capitalize on growing real estate markets. You might not have your own show on HGTV, but it can still be fun and rewarding. If you’re investing in an area where reselling may be difficult, remember to have an exit strategy. Be willing to rent out the house while trying to sell it. This arrangement may last for longer than your projection, so it’s best to plan.
Whether you’re looking for house-flipping opportunities in emerging markets or your nearby vicinity, Park Place Finance can help finance your next endeavor. Contact us today to get started looking at Texas cities for fix-n-flip or learn more about our loan opportunities.