Fix And Flip in Austin Prospects 2025 and beyond?

Question

Hey BiggerPockets Community,

I am a newish investor in Austin, Texas and wondering what your opinions are regarding entering REI through Fix and Flips in ATX in 2025 and beyond? I currently have 2 rental properties in ATX that I flipped + fixed and then rented out. Luckily, I purchased them in 2014 and 2018 and have solid equity and cash flow. Even though I believe I purchased based on strong fundamentals and vision, I also have flipped a few as an investor and sweat equity labor for my dad growing up. I do realize that doesn't make me a know it all investor as even if I overpaid by 20%+++ in 2014, the REI market would have still treated me kindly.

Anyways, I am wondering what your opinions are for getting into REI through Flipping in ATX for 2025 and beyond given the many forces that are at play in ATX including:

1- Interest rate cuts and the expectation that cuts will be a trend in 2025

2- Even with Interest Rate cuts, will this be enough to get people moving since they may be reluctant to move when they have 3% interest rates on their current home?

3- Job Market Growth is still strong in ATX

4- Population growth continues although not at the same pace as the pandemic.

5- Supply side problem - Builders overbuilding creating downward pressure on housing prices.

What are Flippers planning on doing in 2025 in ATX?

What do you see as opportunities and threats?

What area's would you flip in and where would you avoid?

Is 2025 a good time to actually start flipping in ATX? Seems like anytime after 2010 and before 2022 would have been an ideal time.

Thanks for any insights you can give!

Ryan Kelly · Answer

@Austin Styer along with @Wale Lawal's comments, I would focus on flipping a home that will end up in the median price range for a neighborhood, and not creating the Trophy home for a community. We're seeing lots of pain in the flip world with homes trying to sell at top prices for a neighborhood. They are hard to comp and harder for buyers to afford. Just make them nice and median-priced to find the sweet spot in the current market. Just my observations.

Aubrey Durham · Answer

What are Flippers planning on doing in 2025 in ATX?

- A lot of flippers are buying now since higher interest rates are creating slight downwards pressure on property values. Knocking out improvements over the holidays, and selling beginning of the year when interest rates drop and home prices increase due to demand. Also many flippers are buying now simply for tax write off purposes.

What do you see as opportunities and threats?

- Opportunity is that home prices in Austin have been at record highs since COVID but the election and interest rates have created a major buying opportunity. Also, people selling property right now (again, selling during election & holidays) are much more motivated sellers so there is more room to negotiate price. Only threat is that interest rates go up instead of down; however, the federal reserve has been very clear about rates going down and have already started lowering rates.

What area's would you flip in and where would you avoid?

- Areas to avoid vary based on your risk tolerance, budget, experience, etc... So my best recommendation is finding someone who knows your risk tolerance, budget, experience. I am an Investment Real Estate Agent so learning these thresholds for each of my investors is part of my onboarding process.

Is 2025 a good time to actually start flipping in ATX? Seems like anytime after 2010 and before 2022 would have been an ideal time.

- Hindsight is always 20/20! Best thing you can do is to look at the factors that made those years ideal. The biggest correlation is interest rates, but that is not the only factor that indicates a strong flip market.

Hope this helps! Feel free to shoot me a message if you need a little more help.

Wale Lawal · Answer

@Austin Styer

Austin's market conditions in 2025 are favorable for flipping due to modest interest rate cuts and robust job market. Focusing on neighborhoods with job hubs or easy access to transit may provide reliable resale potential. Overbuilding and market softening could lead to downward pressure on prices, so consider areas with limited new construction. Opportunities include affordable fixer-uppers, older neighborhoods, and targeting FHA buyers.

Good luck!

Fix And Flip in Austin Prospects 2025 and beyond?

Fix And Flip in Austin Prospects 2025 and beyond?

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