When rehabbing a fix and flip project there are many factors to consider before you take the plunge into purchasing the property. After all you’ll have to consider things such as: turnover in the area, expected value added per upgrade, and how many days your project will sit on market (just to name a few).
Fortunately for Texas residents, the Texas Association of Realtors recently conducted a study which proves that fix and flip projects continue to be popular and profitable in the Lone Star State as a whole. A few key findings from their study include:
A growing number of Texas homebuyers prefer a more energy efficient home.
- More and more Texan investors are also seeing the returns pay off when strategically selecting which finishes to include and which to by pass. This leads to the home selling faster and at a higher price.
Both nationally and in Texas’s six major markets, fix and flip investors as a whole are seeing a consistently positive return on their investment. - Rehabs in Houston, McAllen, and El Paso achieved the largest year over year growth in project profit margins. However, a majority of remodeling projects in Austin, San Antonio, and Dallas stayed steady year over year.
- To assist in deciding which aspect of the home to improve and which to avoid, the Texas Association of Realtors has put together the following charts below.
As always Loan Ranger Capital is happy to provide hard money financing for your next project and takes pride in being the easiest lender to work with.