Texas is one of the busiest flipping states and one of the thinnest. ATTOM's Q2 2026 report, summarised on our 2026 financing data page, counted 8,389 Texas flips with a typical gross profit of $8,083 and a gross return of 2.8%, down from 6.5% a year earlier. The four lowest-margin large metros in the country were all in Texas.
The Texas numbers
ATTOM's gross figures are resale price minus purchase price. They exclude rehab and carrying costs, which flipping veterans estimate at 20% to 33% of after-repair value. A gross return of 2.8% before those costs is a loss for the typical flip after them.
| Market | Typical gross return |
|---|---|
| United States | 21.5% |
| Texas | 2.8% |
| Houston | 3.7% |
| Austin | 2.8% |
| Dallas | 1.8% |
| San Antonio | A 0.3% loss |
What a lender needs to see on a Texas flip
A typical flip is not what gets financed; a specific one with a documented discount is. Below-market purchases, a scope that adds measurable value, and an exit priced on sold comps are what make a Texas flip file work. The two tests are worked through in LTC vs ARV on a fix and flip loan.
| Test | Limit or requirement |
|---|---|
| Loan to cost | Up to 90% of purchase plus renovation |
| Loan to after-repair value | Up to 70% to 75% of ARV, whichever gives the lower loan |
| The spread | All-in cost (purchase, renovation, carry, selling costs) clearly below recent sold comps |
| Comps | Recent closed sales of renovated properties, not list prices |
| Carry | Interest, property tax and insurance until the sale, at the realistic time on market |
Running the spread on your own deal
Start from the after-repair value supported by recent sold comps, then subtract the purchase price, the renovation budget, interest for the realistic holding period, property tax and insurance, closing costs on both ends and the selling commission. What is left is the margin the lender is looking at.
For scale: the typical Texas gross profit of $8,083 in Q2 2026 would not cover a 1% fee on a $1M loan ($10,000), before any renovation or interest. A Texas flip that gets financed is one where the margin is many times that, and documented.
Why our Texas lending leads with construction
Texas permitted 140,579 single-family units in 2025, the most of any state (US Census Bureau). That is where the Texas investor volume is, and why our Texas program starts with spec homes and build-to-rent. If a flip does not pencil, a ground-up build on the same budget sometimes does; see how a construction loan works for a Texas spec home.
A third route is to renovate and keep: a renovation loan up to 90% of cost, then a DSCR loan up to 80% LTV once leased, with any MUD tax and the reassessed property tax in the rent numbers.
Terms
The program is on Texas fix and flip loans. Non-US investors borrow on the same terms through a US LLC, with no US credit history required.
- $1M to $5M, 12 months, interest-only, no prepayment penalty
- Fee of 1% to 2% at closing, no upfront fees
- Term sheet in 24 to 48 hours, about two weeks to close on a clean file
- Title cost known before closing: Texas title premiums are set by the Texas Department of Insurance