Flipping houses in Austin: a cooler market, the HOME rules and protected trees
Austin has about 994,000 residents and a median home value near $571,000 in recent Census estimates. After the rapid run-up of 2020 to 2022, prices have cooled and many new homes and apartments have been built, so flipping houses in Austin now rewards careful buying and realistic resale prices more than ever.
Austin also has its own rules. The HOME changes allow more homes on many single-family lots, and the city protects many large trees. This guide uses Census figures and local search data to compare ZIP codes, explains those rules and walks through flip math for today's market.
HOME rules, trees and a cooler market in Austin
A few Austin factors can change the best plan for a property.
The HOME changes
Recent HOME code changes allow up to three homes on many single-family lots and smaller minimum lot sizes. Some older homes may be worth more as sites for added units.
- More units
- Smaller lots
Compare a renovation with adding units before you price a deal.
Protected trees
Austin protects many large trees, including heritage trees, and removing or building near them can require permits and changes to your plan.
- Tree permits
- Heritage trees
Check trees before planning additions or new units.
Prices cooled from the peak
Austin prices have come down from their 2022 peak and many new homes compete for buyers. Flips need accurate, current comparables.
- Current comps
- Competition
Use recent sales, not peak-era prices.
Property taxes and holding costs
Texas relies on property taxes, and investors usually cannot claim the homestead exemption. In a slower market, longer holding times add up.
Budget for a longer sale period than in past years.
Questions before buying an Austin flip
- 1What does the lot allow under the HOME rules?
- 2Are there protected trees?
- 3What permits will the work need?
- 4What have similar homes sold for recently?
- 5How long might it take to sell?
- 6What is the backup exit plan?
Listed and sold 25 properties and personally bought and sold four fix-and-flip properties, all generated from probate leads.
Carolynn Castillo
Realtor & Broker · eXp Realty
What Austin-area buyers search for
Search data shows heavy use of county records. The Travis Central Appraisal District draws about 14,800 searches a month and the Travis County property search about 8,100.
Buyers are active
Homes for sale in Austin draw about 6,600 searches a month.
People watch the market
Austin real estate market draws about 1,000 searches a month and Austin home prices about 480.
Suburbs draw buyers
Round Rock draws about 720 searches a month and Pflugerville about 390.
- 1Travis Central Appraisal DistrictAbout 14,800
- 2Travis County property searchAbout 8,100
- 3Homes for sale Austin TXAbout 6,600
- 4Austin real estate marketAbout 1,000
- 5Homes for sale Round Rock TXAbout 720
- 6Austin home pricesAbout 480
- 7Homes for sale Pflugerville TXAbout 390
- 8Homes for sale South AustinAbout 140
How flippers can use this data
Use local data to plan your flips:
Search volumes are approximate. Figures are recent monthly estimates and change over time. Use them to understand interest, not as exact counts.
ForeclosuresDaily.com hosts monthly webinars with investors such as Carolynn Castillo, who share how they find and evaluate flip properties.
Read the webinar announcement →
Shannon Thompson
Investor · Joe Homebuyer of Atlanta
Watch Shannon Thompson share their experience using ForeclosuresDaily.com.
Austin ZIP codes for flips
Recent Census estimates show where prices leave room for renovation profits.
Zilker and South Lamar 78704 and East Austin 78702
Medians near $687,000 to $916,000, where many older homes become sites for new units.
Crestview and Allandale 78757 and Windsor Park 78723
Medians near $562,000 to $656,000, with mid-century homes and strong demand.
South Austin 78745 and far south 78748
Medians near $465,000 to $505,000, with 1970s and 1980s homes and cosmetic flips.
East 78721 and northeast 78724
Medians near $344,000 to $523,000, with older homes and rising demand.
Dove Springs 78744 and north Austin 78752, 78753 and 78758
Medians near $358,000 to $440,000, with ranches and many renters.
Del Valle 78617, Round Rock 78664 and Pflugerville 78660
Medians near $282,000 to $412,000, with newer homes and lower entry prices.
ZIP medians are recent Census estimates and include condos. Price every flip from recent renovated comparables nearby.
Andrew Litchfield
Webinar host
Andrew Litchfield hosted a ForeclosuresDaily.com monthly webinar for real estate investors.
Running the numbers on an Austin flip
Start with recent renovated sales on nearby streets, then subtract purchase price, renovation, holding and selling costs. Allow extra time to sell in today's market.
Profit = ARV − Purchase + rehab + holding + selling
Include full property taxes, insurance and closing costs.
Confirm recent comparables and contractor bids before closing.
Compete with new builds
Buyers can choose new homes nearby, so a flip needs modern finishes, good layouts and fair pricing.
Foundations and clay
Central Texas clay soils move, so get a foundation inspection on older homes.
Price for today
Use the last few months of sales, not peak-era prices, to set your after-repair value.
Check roofs and HVAC
Heat and storms wear out roofs and cooling systems, which inspectors check closely.
Offer buyer incentives
In a slower market, offering to help with closing costs or rate buydowns can move a flip faster than a big price cut.
Energy upgrades help
Better insulation, efficient windows and modern cooling lower summer bills, which Austin buyers notice.
Permits take time
City of Austin permit reviews can be slow, so build that time into your holding costs.
Anthony Coletti
Real estate investor
Watch Anthony Coletti share their experience using ForeclosuresDaily.com.
How to find flip properties in Austin
- 1
Use off-market lead lists
Probate, absentee owner, preforeclosure and tax delinquent lists help you reach sellers before they list.
- 2
Reach tired landlords
Some investors who bought near the peak now want to sell, and some prefer a quiet, as-is sale.
- 3
Build a reliable team
Contractors, arborists and agents who know Austin rules keep projects moving.
Before you buy
- Check HOME lot potential
- Check protected trees
- Inspect the foundation
- Get contractor bids
- Pull recent comparables
- Plan your exit
Explore resources such as wholesale house prices in Austin and wholesaling in Travis County.
Jeremy Resmer
Webinar host
Jeremy Resmer hosted a ForeclosuresDaily.com monthly webinar for real estate investors.
Austin in numbers
Austin has about 994,000 residents, a median home value near $571,000 and a median household income around $90,000 in recent Census estimates, with about 41% of homes owner-occupied and vacancy near 7%.
Only about 46% of homes are single-unit houses, because apartments make up much of the city's housing.
Technology companies, state government, the University of Texas and healthcare support a large job base.
A wave of new construction has given buyers more choices, which has slowed price growth and lengthened sale times.
Flippers who buy below market, renovate efficiently and price to current sales can still do well.
Suburbs such as Round Rock, Pflugerville, Manor and Del Valle offer lower prices for buyers willing to commute.
Older neighborhoods close to downtown, such as Windsor Park and Crestview, keep strong demand because of their location and established trees.
- Ignore tree rules
- Skip HOME lot analysis
- Underestimate holding time
- Check trees first
- Compare renovation and added units
- Budget for longer holds
Austin and Texas resources
Antonio Stringfield
Probate investor · Los Angeles
Watch Antonio Stringfield share their experience using ForeclosuresDaily.com.
Nancy Wallace-Laab
Investor · nearly 20 years
Nancy focuses on the best outcome for both the seller and the investor, drawing on nearly 20 years of real estate investing experience.
Phillip Warrick
Full-time investor since 2003
Full-time real estate investor since 2003, with over 20 years of experience.
Flipping houses in Austin: FAQ
Short answers for investors flipping houses in Austin. Tap a question to open it.
QIs Austin still good for flips?Yes
QWhat are the HOME rules?
QDoes Austin protect trees?
QHave prices changed?Yes
QWhich areas have lower prices?
QDo investors pay full property taxes?
Get started →
Find your next Austin flip
Austin rewards flippers who use current comparables, check trees and lot potential and buy below market.
ForeclosuresDaily.com supplies probate, preforeclosure, absentee owner and tax delinquent leads across Travis County and Texas. Explore our lead products.