Texas draws investors for an obvious reason and holds them back for a less obvious one. There is no state income tax, population growth has been sustained for a decade, and build-to-rent activity is among the deepest in the country. The offsetting factor is property tax: effective rates in much of the state run near or above two percent of assessed value, and that lands directly in the monthly payment.
The short answer: A fix-and-flip loan funds the purchase and renovation of an investment property, with programs reaching up to 90 percent of total cost and 100 percent of the rehab budget released in draws as work is completed. Underwriting centers on the deal — purchase price, rehab budget, and after-repair value — rather than tax returns. In Texas, the age and condition of the available inventory is what usually drives scope and therefore leverage.
DFW and Houston generate the state’s deepest flip inventory and the most reliable comparable sales data. San Antonio offers lower entry pricing with adequate comps. Expansive clay soils across much of North and Central Texas make foundation condition the regional scope item — it is the Texas equivalent of what knob-and-tube is to Philadelphia.
Primary markets: Dallas · Fort Worth · Houston · San Antonio · Austin · El Paso
Housing stock across the major Texas metros is generally newer than Northeast markets, which usually means lighter mechanical scope on renovations. Coastal exposure is the offsetting variable — Houston and Corpus Christi carry wind and flood considerations that affect both insurance cost and what some capital sources will underwrite.
Your rehab scope is conventional, your experience is documented, and the ARV is well supported by recent comparable sales.
This is a first or second flip, the rehab budget is large relative to purchase, or the ARV rests on thin comparable data.
No lender is best for every deal. Kiavi, Easy Street Capital, RCN Capital, Lima One, New Silver, Dominion Financial all write fix-and-flip loans in Texas and all are legitimate options. They differ on leverage, credit floors, property types and experience requirements. The useful question is which fits this deal.
Works: An investor with a property under contract and a defined rehab scope, exiting by sale or by refinancing into a rental loan.
Does not: The property is owner-occupied, the ARV is unsupported by comparable sales, or there is no rehab budget on a property that clearly needs one.
Generally, yes. The major Texas metros have substantially newer inventory than Northeast markets, which usually means lighter mechanical scope — fewer knob-and-tube and galvanized surprises. Foundation movement in expansive clay soils is the regional issue that shows up instead, particularly in the DFW area, and it belongs in the inspection scope.
On the hold side rather than the sale. Carrying costs on a Texas flip include a tax line that is meaningfully higher than in most states, so a project that runs three months long costs more here than the same overrun elsewhere. Build that into the carrying cost assumption before committing to a timeline.
There is no single best lender for every scenario. Kiavi, Easy Street Capital, RCN Capital, Lima One, New Silver, Dominion Financial all write fix-and-flip loans and each has different guidelines. The right answer depends on the specific deal. LendingStreet places the same scenario across 30+ capital sources so the comparison happens on one application.
Yes, in all 50 states including Texas. These are business-purpose loans on non-owner-occupied investment property, from $150,000 with no stated maximum. No W-2 or tax returns required and LLC borrowers are welcome.
Have a Texas deal? Tell us the scenario and we will price it across our capital sources.
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