Texas fix and flip financing puts acquisition and rehab on one ARV-based bridge so you can move at first-Tuesday foreclosure speed. Buy below market in Houston, San Antonio, or DFW, renovate on draws, list into local demand, and exit at resale — with no state income tax on the gain — or pivot to Texas DSCR when rent supports hold math.
Texas market data (2026)
Flip margin starts with accurate ARV, and ARVs track the statewide resale market. As of spring 2026 the Texas median sale price was roughly $335,000 — down about 1.8% year over year — with homes averaging ~70 days on market. That is a slower, more selective buyer pool than the 2021–2022 run — underwrite a realistic list-to-close window on your exit.
| Metro | Median sale price (2026) | DOM / trend | Flip note |
|---|---|---|---|
| Houston (Harris) | ~$330,000 | ~65 DOM / −1.2% YoY | Harris County flood-zone diligence on AE blocks |
| Dallas–Fort Worth | ~$375,000 | ~72 DOM / −3.4% YoY | Sharpest YoY decline of the big metros — hold ARV conservative |
| San Antonio (Bexar) | ~$285,000 | ~58 DOM / +0.8% YoY | Strong yield-on-cost; reassessed tax ~2%+ on improved value |
Source: Texas REALTORS® / Texas A&M Real Estate Research Center (Q2 2026).
Median investor rent (3-bed renovated SFR, Q2 2026): Houston $1,850–$2,250/mo · DFW $2,050–$2,650/mo · San Antonio $1,650–$2,100/mo — model hold exits against these bands, not Zillow potential rent.
Two Texas line items shape carry. The state has no real estate transfer tax — a genuine closing-cost edge on both buy and sale — but property taxes are among the nation’s highest: effective rates commonly reach 2%–2.5% once county, city, school-district, and MUD levies stack, assessed at post-close value. Model the full holding-period tax at the reassessed number, not the seller’s old bill.
When Texas flippers use bridge capital
| Situation | Why fix-and-flip fits |
|---|---|
| Harris County first-Tuesday sale | 7–14 day close with flood diligence done |
| DFW value-add with hail-season roof plan | ARV bridge — model reassessed property tax |
| Distressed SFR with foundation scope | Milestone draws on documented rehab |
| First-time sponsor with reserves | Conservative LTC with itemized budget |
| Hold pivot on executed rent | Texas DSCR |
Three Texas submarkets — distinct theses
| Submarket | Basis band | Rehab scope | Investor thesis |
|---|---|---|---|
| Houston — East End / Near Northside | $195K–$285K | $35K–$75K | Harris County flood diligence on AE blocks; foundation in clay soils |
| DFW — Oak Cliff / southern Dallas | $225K–$340K | $38K–$82K | Collin/Denton reassessment after close; hail on roof-forward scope |
| San Antonio — Dignowity / Tobin Hill | $185K–$265K | $32K–$68K | Strong yield-on-cost; Bexar tax ~2%+ on reassessed value |
Stepping up: luxury scrape, gut, and pods (DFW / Austin)
Standard flip bands in this guide ($285K–$420K ARV) cover ranch and cosmetic rehab. When all-in exceeds ~$650K or ARV targets $750K+, different products apply:
| File type | Where to start |
|---|---|
| $750K+ gut (no demo) | Luxury fix and flip DFW |
| Scrape / custom spec | Luxury new construction DFW or Austin |
| 4–20 door pod | Community build DFW |
| Teardown fork math | DFW infill teardown economics |
| Desk comparison | Volume flip vs jumbo construction |
Example composite deal: Southlake Carroll ISD luxury scrape.
Texas fix-and-flip lender comparison
Texas volume is the deepest flip market in the country — every national grid competes here. The differentiator is metro-specific comp discipline and property-tax carry modeling, not raw leverage. Compare how each lender handles Harris flood zones vs DFW hail corridors on the same ARV band.
| Lender type | Texas strength | Texas gap |
|---|---|---|
| National (Kiavi, Lima One, RCN) | Scale, experience tiers, standardized draws | Harris flood vs DFW hail scope treated as one “Texas” file |
| Texas regional shops | First-Tuesday auction relationships, MUD tax familiarity | Variable DSCR takeout to Texas DSCR |
| Focus-market (Jaken Finance Group) | Metro-specific comp templates, foundation and flood diligence | Rural West Texas outside focus metros |
See compare hub · Renovo vs Jaken Finance Group · Kiavi vs Jaken Finance Group
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
- Harris County (Houston) flood zones and mandatory flood insurance on AE blocks
- Foundation movement in clay soils — scope before draw schedule locks
- Hail in North Texas — roof-forward rehab on every dated stock file
- Occupied or “vacant” houses that still have a former owner or informal stay — Texas SB 38 and SB 1333 speed true squatter cases, not handshake holdovers
Rehab scope and draw discipline
DFW and Houston rehab scopes typically run $35,000 – $82,000 against $285,000 – $420,000 sold-comp targets. Model 7–10 months close-to-list with 15%–20% contingency; front-load mechanical and foundation draws before cosmetic passes.
Worked example: Oak Cliff Dallas flip
| Line | Amount |
|---|---|
| Purchase | $228,000 — 3/2 SFR, dated kitchen and roof hail damage |
| Rehab | $62,000 — roof, foundation patch, kitchen, bath, HVAC |
| Bridge | 87% LTC @ 12.0% IO |
| Hold | 8 months rehab + list-to-close |
| ARV (conservative sold comps) | $338,000 |
| Selling costs (~8%) | $27,040 |
| Carry (8 months IO on ~$252K avg balance) | ~$20,200 |
| Property tax carry (8 months at ~2.2%) | ~$3,700 |
| Est. net before tax | ~$3,060 |
DFW spreads need conservative ARV and full property-tax modeling — no transfer tax helps, but reassessed MUD levies bite mid-hold.
Where Texas flippers find inventory
- Houston — East End and Near Northside value-add with flood diligence
- DFW — Oak Cliff and southern Dallas; Collin/Denton reassessment after close
- San Antonio — Dignowity and Tobin Hill yield-on-cost corridors
Texas TREC advertising rules apply; homestead exemptions do not reduce investor property tax — model at purchase price.
Permits, taxes, and Texas investor rules (2026)
Texas has no state or local real estate transfer tax — a genuine edge on both acquisition and resale that national lenders often under-model. Investors still face:
| Rule / fee | Texas investor impact |
|---|---|
| Property tax reassessment | County appraisal districts reassess at purchase price — MUD + ISD levies can push effective rate 2%–2.5% on improved value |
| Homestead exemption | Does not transfer to investors — seller’s low bill is not your carry |
| TREC advertising | Investor marketing must comply with Texas Real Estate Commission rules on licensed activity |
| Non-judicial foreclosure | Power-of-sale on first Tuesday of the month — fastest distressed inventory pipeline in the U.S. |
| Flood (Harris AE blocks) | Elevation certificate required before final inspection on structural scope |
Harris County and City of Houston permits on structural scope in flood zones require elevation certificates before final inspection — add 3–5 weeks to Houston bridge timelines. DFW hail season front-loads roof draws; San Antonio Bexar County cosmetic permits often clear in 2–3 weeks. MUD and ISD tax reassessment hits within 60–90 days of close — model the higher bill from month one, not the seller’s homestead rate.
Worked example: San Antonio Tobin Hill BRRRR pivot
| Line | Amount |
|---|---|
| Purchase | $198,000 — 3/2 1940s bungalow, HVAC failed |
| Rehab | $48,000 — HVAC, electrical panel, kitchen, bath |
| Bridge | 88% LTC @ 11.75% IO |
| Hold | 9 months rehab + lease-up |
| Achieved rent | $1,875/mo |
| Appraisal | $278,000 |
| Property tax (reassessed) | ~$5,800/yr |
| DSCR refi @ 68% LTV | ~1.09 — Plan A flip netted ~$8K at $285K resale |
San Antonio spreads reward yield-on-cost discipline — reassessed Bexar tax belongs in PITIA before you size permanent debt.
What we need for a Texas term sheet
Deliver purchase contract or first-Tuesday sale confirmation, line-item scope with GC bid, sold comps within 0.5 mi, entity docs, and exit plan — resale or Texas DSCR on executed rent. Foundation reports on clay-soil acquisitions and flood-zone elevation docs on Harris County AE blocks are Texas-specific underwriting asks.
After the flip: hold instead?
DFW and Houston rent can clear DSCR when hail or flood scope extends rehab — stabilize via Texas DSCR rather than listing into a reassessed-tax carry month.
When fix-and-flip is wrong in Texas
- Executed lease with coverage — Texas DSCR when reassessed tax bites resale
- Primary-home purchase — business-purpose bridge does not apply
- Hail, flood, or foundation scope unpriced — complete GC budget before close
Define the exit before you borrow
Fix-and-flip is a bridge in Texas, not a destination. Underwrite Houston, DFW, or San Antonio sold comps first; if rent supports coverage after rehab, model Texas DSCR as Plan B before you max leverage. High property tax and hail scope make IO extensions costly — no transfer tax helps on both buy and sale, but reassessed MUD levies bite mid-hold.
Texas fix-and-flip FAQ
Can I pivot from flip to rental in Texas?
Yes — when achieved rent supports DSCR coverage after rehab, stabilize into Texas DSCR rather than forcing a thin DFW resale in a 70-day DOM market. Model both exits before draw one, with property tax at reassessed value from month one.
How much can I borrow on a Texas flip?
Texas sponsors commonly qualify for ~90% of purchase plus approved rehab, capped near 70%–75% of ARV on Houston and DFW comps near $285,000 – $425,000.
What local risk changes Texas scope?
Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors; model property tax at reassessed value.
How fast can I close in Texas?
Harris and Dallas first-Tuesday sale files with complete scope documentation frequently fund in 7–14 days — foundation and flood diligence should be pre-done.
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.