The 2026 numbers show some of the thinnest typical margins of any large metro in the country, but the city's HOME zoning changes have opened up lot-split and small-infill projects that did not exist a few years ago. This page covers the flip math, the HOME changes, rentals and our lending partners' terms.
The thinnest flip margins in the country
Location is rarely the question in Austin. Central Austin, Round Rock, Georgetown, Cedar Park, Pflugerville, Kyle, Buda and San Marcos all sit inside a metro of more than two million people. The flip numbers are the question.
ATTOM's report on the first quarter of 2026 put the typical gross flipping margin in the Austin metro at 2 percent, the lowest of any metro of a million people or more. Its second-quarter report, released in October 2026, had Austin at 2.8 percent, still among the five thinnest large metros alongside San Antonio, Dallas and Houston. On a $450,000 purchase, a 2.8 percent spread is a resale around $463,000, before renovation, financing, taxes, insurance and commissions, which ATTOM notes flippers commonly estimate at 20 to 33 percent of the resale price. At the typical spread, the typical Austin flip loses money.
Austin flips also take time. In a special analysis of first-quarter 2026 loan-level deals across six markets, ATTOM and Backflip found Austin had the longest average payoff, about 154 days, against roughly 90 days in Atlanta. Five months of interest, taxes and insurance is real money on a thin spread.
That does not mean Austin investors have no plays. It means the plays are different: buying well below market, adding value a cosmetic flip cannot, or building.
Austin's HOME changes are the opportunity to study
The City of Austin's HOME initiative was adopted in two phases. Phase 1, approved in December 2023, allows up to three homes on many lots that once held one. Phase 2, approved in May 2024, cut the minimum lot size for a single-family house to 1,800 square feet in many single-family zones.
For an investor, that turns some Austin properties from a thin flip into a different project: split a lot and build new houses, add units behind an existing home, or buy a teardown for the land. Before you plan around it, confirm the current rules, your lot's zoning, deed restrictions and utility capacity with the city and a local land-use professional. Many neighborhoods carry private deed restrictions that the city rules do not override.
How financing fits. Our lending partners offer short-term construction financing alongside fix-and-flip loans, priced from 12.99 percent plus 2.99 points, with loans from $50,000. Ground-up and lot-split projects are underwritten on the plans, the budget, the builder's track record and the finished value, so ask the lender how your specific project would be sized before you pay an architect.
Found an Austin deal or a lot to build on?
Send the address, the numbers and your plan. Our lending partner's team reviews it and tells you which program fits.
Rentals in Austin: check the tax and the rent
Austin rents have softened with the wave of new apartments, so run a rental on today's rent, not last year's. A DSCR loan qualifies the property on that rent rather than your income. Our lending partners' DSCR program has no minimum credit score and lends from $75,000 to $2 million, up to 80 percent of value on a purchase or rate-and-term refinance.
The swing number is property tax. Texas has no state income tax and makes up for it at the county and school district level. Texas also limits yearly appraisal increases on non-homestead property worth up to about $5.32 million in 2026 to 20 percent, but only after a full calendar year of ownership, the limit is removed when the property sells, and it is scheduled to expire after the 2026 tax year unless the Legislature renews it. A house the seller held for years may be taxed well below the price you pay. Estimate taxes on that price, and if the appraisal district overshoots, the usual protest deadline is May 15 or 30 days after your notice is delivered, whichever is later.
Texas rules that apply in Austin
No transfer tax. Texas does not tax the sale of real estate.
Non-disclosure. Sale prices are not public record, so after-repair values come from closed sales in the multiple listing service. In a market where the typical margin is a few percent, a value built from a website estimate is a gamble.
Fast foreclosure. Texas generally forecloses outside court under a deed of trust, with sales on the first Tuesday of the month, which keeps lenders comfortable and puts auction properties on the market regularly.
Our lending partners' terms in Austin
Fix and flip and bridge loans: from $50,000, up to 100 percent of cost but no more than 70 percent of after-repair value, whichever limit is reached first, with a 600 minimum credit score. Standard pricing starts at 12.99 percent plus 2.99 points. Borrowers who have paid off two loans with the lending partner in good standing can qualify for loyalty pricing of 10.99 percent plus 1.99 points.
Leverage depends on the experience you can document over the past three years. Loans are for non-owner-occupied investment property held in an entity such as an LLC or corporation. The lender decides the final terms for your property, so confirm them before you commit.
Holding an Austin rental? Our two free landlord books compare what a rental costs to carry across the states, including Texas.
Send it through the form above and our lending partner's team will tell you which program fits.
Related guides
Texas · San Antonio · Construction loans · DSCR rental loans · Dallas
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Austin hard money questions
Is flipping houses in Austin still profitable in 2026?
Rarely at the typical margin. ATTOM put the typical gross flipping margin in the Austin metro at 2 percent in the first quarter of 2026 and 2.8 percent in the second, before renovation, financing and selling costs. Austin flips that work are usually bought well below market or add real value.
How long does a typical Austin flip take to pay off?
In ATTOM and Backflip's first-quarter 2026 analysis of six markets, Austin had the longest average payoff, about 154 days. Budget your interest, taxes and insurance on a five to six month hold.
Can I build more than one house on my Austin lot under HOME?
Possibly. HOME Phase 1 allows up to three homes on many lots that once held one, and Phase 2 lowered the minimum single-family lot size to 1,800 square feet in many zones. Deed restrictions, zoning and utilities still decide, so confirm with the city before you plan around it.
What rate will I pay on an Austin fix and flip loan?
Our lending partners' standard pricing starts at 12.99 percent plus 2.99 points, with loans up to 70 percent of after-repair value and 100 percent of cost. After two loans paid off in good standing, loyalty pricing of 10.99 percent plus 1.99 points can apply. The lender sets the final terms.
Why did my Austin rental's appraisal jump after I bought it?
Texas's 20 percent yearly limit on non-homestead appraisals only applies after a full calendar year of ownership and is removed when the property sells, so the value resets toward your price. You can protest by May 15 or 30 days after your notice, whichever is later.
Sources
- ATTOM, Q1 2026 U.S. Home Flipping Report, Austin 2 percent typical gross margin and the 20 to 33 percent cost estimate (accessed Oct 2026)
- ATTOM, Q2 2026 U.S. Home Flipping Report, Austin 2.8 percent typical gross margin (accessed Oct 2026)
- ATTOM and Backflip, Special Analysis of Q1 2026 fix-and-flip returns, Austin 154-day average payoff (accessed Oct 2026)
- City of Austin, HOME Amendments (Phase 1 adopted Dec 7, 2023; Phase 2 adopted May 16, 2024), Phase 1 three-unit allowance and Phase 2 1,800 square foot minimum lot (accessed Oct 2026)
- Texas Comptroller, Valuing Property, the 20 percent non-homestead circuit breaker limitation (accessed Oct 2026)
- Harris Central Appraisal District, Circuit Breaker Cap, $5.32 million 2026 threshold and expiration after the 2026 tax year (accessed Oct 2026)
- Texas Tax Code, Chapter 41, Section 41.44, protest deadline of May 15 or 30 days after notice (accessed Oct 2026)
- Texas Property Code, Section 51.002, nonjudicial foreclosure sales on the first Tuesday of the month (accessed Oct 2026)
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.