Flipping Houses in El Paso: A Guide
Before earning a decent profit from house flipping, you must understand how to find worthwhile houses and analyze the housing market to determine if a place is worth flipping. And if you're researching El Paso, Texas, to see if a real estate investment could be a profitable venture, we have some insight on the housing market there and the best practices for flipping houses in El Paso.
So Is El Paso a Good Place to Flip Houses?
Consider certain factors when flipping a home in El Paso, such as:
How the City Ranks for Flipping
You should know that three cities in Texas rank as the best places to flip houses in the U.S. Of those three cities, El Paso ranks highest on the list, taking the third spot.
Why Flipping There Is Beneficial
El Paso is home to over 70 Fortune 500 companies, and it's fourth on the list of top manufacturing hubs in North America. Plus, the city ranked third for quality of life.
You'll spend less on remodeling and renovations in this city than in other areas. Only nine other cities out of 150 were cheaper to perform renovations and remodels than El Paso.
With that said, the city has immense potential, considering the renovation costs and its appeal to prospective buyers.
Know the market as well as market potential when you make an investment in a home.
Understand when flipping houses in El Paso that a home remains on the market for an average of 48 days.
The average median listing price for homes there was $249,000 as of April 2022. Valley Creek South is the most expensive city, with houses going for an average of $715,000. Mountain View made the list as the most affordable, with the average home price being around $130,000. Other noteworthy cities in the area include Las Tierras, High Ridge, and Bear Ridge.
In total, El Paso is home to 177 neighborhoods, varying in price range and giving individuals access to housing options, like duplexes, multi-family homes, and townhouses.
If you plan to market your fixer-upper to families, know that the city has over 254 public schools and 75 private and charter schools, most of which rank average or above average in terms of education.
Basics of Flipping a House in El Paso
When you first start, establish a budget. Then, determine where your funding will come from. If you finance a home that needs extensive repairs, you’ll not only be paying for your down payment, but the amount you spend in mortgage payments will quickly add up. Therefore, it’s best to use what money you have to avoid the high cost of a mortgage if possible.
As you're flipping houses in El Paso, consider the market, location, and potential. Research the neighborhoods based on their school districts, cost, demographics, and other similar factors. Additionally, find a home with a value less than its price.
Next, create your team. These professionals include a lawyer, accountant, real estate agent, and laborers.
Then you can select and purchase your El Paso home and begin the repair and renovation process.
How to Know if the House in Texas is a Good Investment
Do your homework about the properties, market potential, and potential of the home. Avoid houses that have been active for a while, since the average house in Houston sells in about 45 days. Be leery of homes that have a lower-than-average home value. These typically require more renovations and repairs.
Do You Need a Real Estate License to Flip Houses in Texas?
You don't need a real estate license for home flipping in Texas. However, you may want to acquire contractor and realtor licenses if you plan to flip houses in Texas full-time. If you don't want to obtain either, you could also find a reputable agent and contractors to work with long-term.
If you want to make money flipping houses in El Paso, understand the markets of different areas and how to find a fixer-upper with potential. El Paso's market is suitable for flipping and can provide you with the profit you desire when you choose your investment property carefully.
Acala Investments can help you if you have any further questions. Contact us today!