Flipping is the activity involving the purchase of a house and the buyer holds on to the asset for a short time. The holder of the property then sells the same at a higher price. House flippers see these properties as tools for investment instead of something to live in. Flipping houses in Texas is as common in other states. House flipping is purchasing an asset that has the potential of generating revenue through renovation. Flipping is also a form of investing in wholesale real estate where the investors do not buy the properties for themselves but to earn money.
Analysis Of The Housing Market In Texas
- More Stress Laid On Middle-Income Properties: The difference between the median home value and the median resale houses that are being flipped. This is an indication that investors have made the middle end of the market the point of their focus to look for properties that are under poor maintenance. The approximate revenue the house flippers are generating per flip is $43,210. The revenue generated by house flipping in Texas is lower than the revenue in the other states. In other states, the generate can go as high as $60,000 with each flip. To make it big in the house-flipping industry in Texas, you will have to have tight budgets and deadlines
- Increase In Home Values: The prices of properties have been facing a uniform rise since 2012. Covid-19 led to a slight dip in the prices of properties but after that wave, the house-flipping industry in Texas has consistently been on the rise. History says that the demand for properties increases when there is a low rate of interest with the supply of houses being low.
- Ample Schools & Job opportunities: Localities that surround good schools are likely to retain their value even in times of economic distress. So, assessing the educational facilities of the area is highly recommended before deciding to invest. Apart from schools of repute, another factor that influences the economic strength of the area is the presence of employment opportunities and along with that, the strength of the economy. Some of the many areas in Texas that have significant employment opportunities are Victoria, Midland, and Bryan among others.
- Trouble In Paying Mortgage: In Texas, the percentage of failed mortgage payments is 1.4%. This percentage is higher than the national percentage which is 1.1%. This failure to pay off the mortgage is the first step towards foreclosure of the asset. This also implies that the percentage of foreclosures is higher in Texas than the other states. House flippers can make the most of this opportunity as foreclosure is a good opportunity to buy the property for a price that is lower than its market value. To get an extra edge in the game, you can use Flipscout. It is an app that can help you find real investments that have the potential to reap profits using data and intelligence.
- Lower Price Than National Average: The average price of a house in Texas is $224,466. This is a lot less than the national average which is approximately $226,222. The lower cost of homes in Texas can be a boon for rookie flippers as it can bring down the capital required for making a down payment and the total amount required for purchasing the property. In other words, the threshold to start house-flipping in Texas is significantly low and this can be very good news for newbies in this field.
How House-Flipping In Texas Works?
- Creation Of Budgets: Before flipping houses in Texas, make sure you have an idea of the budget so you approach house-flipping with a ‘clear’ plan in mind. Private money lenders can advise you on how much property to buy, the estimated down payment, and the rate of interest so you can perceive flipping from a financial point of view. To get a good interest rate, you need to have a credit score ranging from good to excellent.
- Make Research: Before investing, make sure you research counties, neighbourhoods, or cities in Texas so you can determine what area can get you the most returns. Getting in touch with a realtor who has an idea of the local Texas real estate market can make or break your investment.
- Getting The Team Together: To make your investment a success, you may have to assemble a team comprising a capable mentor, a real estate attorney, a lender, a contractor, and accountants. Before purchasing the property, make sure you get your team ready to get started right from the get-go. This can help in saving considerable time and money.
House flippers can make it big in the game if they have a crystal-clear idea of the budget. It is important to be aware of the basics of the industry. You can reach out to part-timers and freelancers who can help you flip as they can give you invaluable and first-hand insights into selling properties. In case of doubt, contacting these individuals can be just as invaluable. You can use Flipscout to use the data for flipping anywhere in the country.