Texas fix and flip financing puts acquisition and rehab on one ARV-based bridge so you can move at auction speed. Buy below market across Houston, San Antonio, DFW (Dallas–Fort Worth), renovate on a draw schedule, and exit at resale.
When Texas flippers use bridge capital
| Situation | Why fix-and-flip fits |
|---|---|
| Distressed SFR with deferred mechanical | ARV-based bridge funds scope banks decline |
| Pivot to hold after rehab | Exit to Texas DSCR if rent supports coverage |
| Auction or estate acquisition in Houston | Close in 7–14 days when banks cannot |
| Value-add resale in San Antonio | Interest-only carry through rehab and list |
| First-time sponsor with strong GC | Conservative LTC with milestone draws |
Fix-and-flip economics in Texas
Margin is made on the buy and protected on the timeline. Two Texas cost lines bite flip margin: holding-period property tax at an effective ~1.68% (among the highest effective rates (1.8%–2.4% in many counties); model at post-close assessed value) and no state income tax on the gain — no state income tax — after-debt cash retains more than in California or New York. Model both before you commit to ARV.
| Metro | Typical basis | Rent band | Flip notes |
|---|---|---|---|
| Houston | $195K–$320K | $1,650–$2,350 | Harris County flood-zone diligence on AE blocks |
| San Antonio | $185K–$275K | $1,550–$2,100 | strong yield-on-cost; Bexar tax ~2%+ |
| DFW (Dallas–Fort Worth) | $245K–$385K | $1,850–$2,650 | Collin/Denton reassessment after close |
Speed comes from non-judicial foreclosure norms — power-of-sale foreclosure on the first Tuesday of the month is among the fastest in the U.S. Texas’s investor-friendly framework keeps acquisition and disposition timelines predictable.
Texas flip loan terms (2026)
| Term | Texas range |
|---|---|
| Scope risk | Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors |
| Acquisition leverage | Up to ~90% of purchase |
| Rehab funding | 100% of approved scope, on draws |
| Basis | Sized to ARV ($285,000 – $420,000 typical) |
| Rate | Interest-only, 8.99%–13.5% |
| Term | 6–12 months |
Local risk to scope in Texas
Texas carries specific physical-risk lines you must price before close:
- Harris County (Houston) flood zones and mandatory flood insurance
- Foundation movement in clay soils
- Hail in North Texas
Rehab scope and draw discipline in Texas
DFW rehab scopes typically run $24,000 – $62,000 against $195,000 – $325,000 sold-comp targets. Model 7–10 months close-to-list with 15%–20% contingency; front-load mechanical draws on DFW files before cosmetic inspection passes.
Profit math on a Houston flip
| Line | Amount |
|---|---|
| Corridor | DFW |
| Purchase | $204,000 |
| Rehab | $65,000 |
| All-in | $269,000 |
| Carry (~6 mo @ ~12.0% IO) | $14,526 |
| ARV (conservative) | $342,000 |
| Selling costs (~8%) | $27,360 |
| Est. net before tax | $31,114 |
DFW flip spreads need contingency on scope.
Where Texas flippers find inventory
- Houston — Harris County flood-zone diligence on AE blocks
- San Antonio — strong yield-on-cost; Bexar tax ~2%+
- DFW (Dallas–Fort Worth) — Collin/Denton reassessment after close
Texas TREC advertising rules and homestead exemptions do not apply to business-purpose investor loans.
After the flip: hold instead?
When DFW rent supports hold math, exit to Texas DSCR; when resale is stronger, recycle via fix and flip Texas. Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
When fix-and-flip is wrong for DFW
- DFW rent roll supports hold — stabilize into DSCR Texas
- Owner-occupied house-hack — business-purpose bridge does not apply
- Unpriced scope risk — fix the line-item budget before IO carry
Texas fix-and-flip FAQ
How much can I borrow on a Texas flip?
Lenders size Texas files to sold comps near $195,000 – $325,000 on DFW stock — typically ~90% of purchase plus 100% of approved rehab, capped near 70%–75% of ARV on conservative first deals.
What local risk changes Texas scope?
Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
How fast can I close in DFW?
With clear title and a line-item scope, DFW auction and estate files often fund in 7–14 days when title and the scope file are already documented.
Texas fix-and-flip carry model
Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
Typical Texas ARV spans $195,000 – $325,000 with $24,000 – $62,000 rehab scopes across DFW, Houston exurban, and San Antonio. Underwrite 7–10 month hold at 8.99%–13.5% IO before list — not active-listing ARV. Model investor property tax and landlord insurance on the parcel before draw one.
On DFW acquisitions, tie each draw to inspection milestones so change orders do not force a scope reset mid-project. Hold exit: DSCR Texas.
Texas flip carry discipline — DFW (Dallas–Fort Worth) sold comps (2026)
- Hold 7–10 months IO at 8.99%–13.5% on DFW (Dallas–Fort Worth) — ARV discipline $285,000 – $420,000, not active-listing aspirational pricing.
- $35,000 – $95,000 rehab scopes on DFW (Dallas–Fort Worth) sold comps — Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
- Houston imports fail underwriting — comp within 0.5 mi on matching bed/bath in DFW (Dallas–Fort Worth).
DFW (Dallas–Fort Worth) flip bridge 8.99%–13.5% IO to 90% LTC · Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors · DSCR Texas · (833) 264-7776.
Get Your Texas Fix-and-Flip Quote · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.