Flipping in Austin, Texas

[Michael Serrato]

Hello Fellow Central Texans and BP Community,

I am relatively new in learning the niche of flipping. I have read several BP books to attain knowledge and education foundation of real estate. Likewise, I just moved to Austin, Texas and I am excited to bark on the journey to seek, listen, and talk with locals. My questions, I am wondering if any one of you experiences flipping on SFH as newbies starting with medium-size capital and how does that work for you? Do tools such as flipping formulas and ARV work once the flip fixed and sell?

Thanks!  Looking forward to hearing insightful messages from you. 

[Bryan Noth]

@Michael Serrato the predictive formulas for the 70% or 80% ARV acquisition models are difficult to accurately apply to the Austin market currently. This is largely due to the rising home prices. The last 30 days of homes sales near the median home price show 3-6% over list price in the Austin MSA. However, this does not account for listings that bump up the original price in response to a flood of over asking offers. This also shows the majority of sales that had accepted contracts 2-5 weeks prior, not what the current bidding/pricing is at. In a market with unprecedented levels of inventory this makes the final ARV number a moving target. Albeit, an upward moving target at this point. Would be glad to share some insight, I have done several flips in the area.