Fix and flip calculator — Texas

Frequently asked questions

How do you calculate fix and flip profit?

Net profit is sale proceeds after selling costs and loan payoff, minus cash invested (down payment, rehab, interest-only payments during hold, and monthly carrying costs).

What is a good ROI for house flipping?

Targets vary by market and risk. Many investors compare return on cash to alternative uses of capital and minimum hurdle rates after accounting for taxes and contingencies.

Do Texas property taxes affect cash flow in this calculator?

Yes—and they matter. Texas has no state income tax but property taxes are among the highest in the country. Default inputs start with HUD-based rent estimates; enter your expected annual property tax and insurance load in the expenses field to model real cash flow.

What is a good cap rate in Texas?

Residential investment cap rates in Texas vary by market. DFW and Houston investors typically see 5.5–7% on SFR and small multifamily as of 2024–2025, while Austin and premium suburban markets compress closer to 4.5–5.5%. Texas's high effective property tax (~1.6–2% of value depending on county) meaningfully reduces NOI—enter your actual tax bill rather than using a national default to get an accurate cap rate.

How do I estimate cash-on-cash return in Texas?

Cash-on-cash return in Texas depends heavily on your down payment, financing rate, and how accurately you model property taxes and insurance. With a 20% down payment and 7–8% mortgage rate, many Texas SFR deals run 4–8% CoC. High property taxes reduce NOI, which compresses CoC relative to lower-tax states—use local tax estimates, not a national rule of thumb.

How should I set a fix-and-flip target in Texas?

Base your model on $339,500 median home prices, then stress sale timeline, financing carry, and selling costs. A conservative resale and hold assumption matters more than headline ROI.