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.
Fix-and-flip economics in Texas
ARV discipline and a real rehab number decide the flip — not optimism. 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 |
|---|---|
| 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, ~10.5%–12% |
| 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
Profit math on a Houston flip
| Line | Amount |
|---|---|
| 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 |
A workable spread — protect it with contingency. Spread compresses fast when ARV comps are optimistic or rehab runs 15%–25% over 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?
If the numbers favor a hold, refinance into a Texas DSCR loan on the stabilized rent, or run a portfolio bridge via hard money lenders Texas.
Texas fix-and-flip FAQ
How much do Texas fix-and-flip loans cover?
Typically up to ~90% of purchase plus 100% of an approved rehab budget, sized to ARV — commonly the $285,000 – $420,000 band across Texas investor stock. Leverage depends on experience and the deal.
How fast can I close a flip loan in Texas?
Asset-based files in Texas can close in roughly 7–14 days with clear title and a workable scope — fast enough for Houston auction and estate timelines.
What kills Texas flip margin most often?
Optimistic ARV comps and rehab overruns of 15%–25%, plus Harris County (Houston) flood zones and mandatory flood insurance. Build contingency into every Texas budget.
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.