Just wanted to get some opinions about the current Texas market (Frisco, Austin, Lubbock, Fort Worth, El Paso, etc), for rehabbers, are housing prices still decent enough to make flips make sense, is it too low inventory?
Thanks in advance for the input!
For those of us that have been doing this in Texas for a long time(25+ yrs for me), we have systems, contacts and intimate knowledge of our markets so absolutely ! I have been through several up and down markets and have never wavered.... but I am the guy that will still be trying to flip a house when I am in a nursing home while the other will be playing dominoes and soaking their dentures
I assume you question is more along the lines of would I start today in a market totally new in a different state ? Much tougher question to answer. Margins are thinner. Good contractors are tough to find. Good agents are just as tough to find(being a broker I have that one covered) It can be done no doubt. If I could avoid debt to lesson the risk and allow for a large learning curve I would
Real estate is local. There are also price segments in each market. I live in the Austin MSA and can say it is very competitive to find a well priced fixer-upper on the mls in the entry level range that doesn’t have multiple offers within days...or hours. In a hot market I imagine it is difficult to find contractors too. But if you can buy a property at a good price and get it rehabbed in a reasonable amount of time you can make money. If you’re doing the work why not flood or hurricane damaged areas? Houston or Port A? Those seem like the areas with the most opportunity with some “motivated” sellers...not to promote being too opportunist after a disaster, but people/banks need to get on with their lives/primary business.
That is very interesting from your part. I never thought of Houston since maybe I wouldn't even be able to get a loan there. @Marian Smith
@Arturo Borges why not start in your market or home state? There are still plenty of deals to be had in Florida.
@Arturo Borges There are plenty of deals to be had in your local market. In fact, after last year the hurricane affected areas in TX and FL had enticing opportunities. Unfortunately, the easy money was gone as investors snapped these up.
But before you commence, you should definitely line up contractors, financing and a project manager to ensure that you hit the ground running.
If someone is trying to do a rehab in Texas from Florida it will be the shortage of construction workers that will cause the problem.... not the shortage of inventory.
@Omar Khan @Michael Biggs You guys would be impressed. There is indeed a shortage of inventory here in cities like Tampa, Orlando, St Pete, Deltona, etc. I'm talking about receiving 1 deal every 2-3 days, and having an extremely extensive network of wholesalers. That's why we are trying to build a solid team in Texas to also invest there.
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