4 Dallas/Fort Worth Areas to Take Advantage of with a Fix & Flip Loan
The Dallas/Fort Worth Metroplex offers a vast array of opportunities for fix-and-flip investors. Learn more about where to look for properties.
The market for fixing and flipping houses is in constant flux. With careful research and preparation, though, it can be quite lucrative even as the real estate market starts to cool down a bit. As the most populous urban area in Texas, the Dallas/Fort Worth area presents many opportunities for astute house flippers.
Read on to learn more about where you might focus your efforts when looking for investment properties.
Planning a fix & flip in Dallas/Fort Worth
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The Dallas/Fort Worth area, also known as the Metroplex, stretches into eleven counties and is home to nearly 8 million people as of the most recent census. More than 2 million people live in the cities of Dallas and Fort Worth. Other major cities in the Metroplex include Arlington, Grapevine, Irving, and Plano.
However you look at it, the Metroplex is growing. It jockeys with other Texas cities, including Austin and San Antonio, for titles like “fastest growing city in Texas” and “fastest growing city in the United States.” From 2020 to 2021, the Metroplex reportedly led the nation in population growth. During 2022, it ranked anywhere from first to fifth in the country, depending on who you asked. The Kinder Institute for Urban Research at Rice University in Houston calls the Metroplex “the de facto capital of the American Heartland.”
House flippers were reportedly seeing larger and larger profits in the Metroplex at least through the middle of 2022. Many Dallas/Fort Worth-area flippers expressed confidence about the market going into 2023. These figures stand in hopeful contrast to nationwide statistics showing declines in both profits and activity.
Areas in Dallas/Fort Worth for fix & flip properties
The Metroplex is truly vast. It includes fifteen cities with populations of at least 100,000 people, spread out over an area that is larger than Connecticut. The following areas have shown promise for house flippers:
Oak Cliff
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Oak Cliff was once a separate city located southwest of Dallas across the Trinity River. Dallas annexed it in 1903, but the area has retained a distinct identity.
Houses in the area range from turn-of-the-20th-century to mid-century modern. This is part of what has made Oak Cliff one of the busiest house-flipping markets in both the state and the country. The median home price in the area was $267,500 at the end of December 2022, giving house flippers ample opportunity to turn a profit.
Lake Highlands
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The Lake Highlands area covers a large portion of northeast Dallas. It borders the cities of Garland and Richardson and provides quick access to the parks and trails around White Rock Lake.
House prices in Lake Highlands can vary widely. Homes listed for $1 million or more began to appear when the Texas real estate market started heating up in 2020. The median sale price rose to $489,000 by the end of 2022. House flippers might be responsible for much of this trend. At the same time, modest single-family homes from the 1960s and ‘70s still abound.
South Dallas / Fair Park
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This area, located southeast of downtown Dallas, is beginning to emerge from years of disrepair. While investing in this part of the city might be riskier than elsewhere, the potential ROI could be considerable.
Public investment in the area has skyrocketed in recent years. A public improvement district (PID) began in 2016. It has focused much of its efforts on capital improvements and business development. The PID’s current term runs through the end of 2023. The federal government awarded about $600,000 in grants to the city in 2020 for revitalization projects. A ballot proposal that passed in 2022 with the support of over 70% of Dallas voters will bring extensive investment to the neighborhood.
New creative homebuilding projects are beginning to emerge in South Dallas / Fair Park. In early 2022, for example, several shipping container homes went on the market in the area, each listed for $220,000. Overall, home prices remain low in South Dallas / Fair Park, especially when compared to other areas of the Metroplex. This presents opportunities for low purchase prices and high capitalization rates.
Polytechnic Heights
Photo by Rene Gomez Photography on Wikimedia Commons [Creative Commons]
One of the best neighborhoods for fix and flip investments in the DFW area is affectionately known as “Poly”, located southeast of downtown. The neighborhood derives its name from Texas Wesleyan University, which began in 1890 as Polytechnic College. Like many “inner city” areas, Poly was solidly middle class for much of the 20th century but experienced an economic downturn beginning in the 1960s and ‘70s. It is now seeing efforts at revitalization.
Poly and surrounding neighborhoods have been one of the busiest areas in the state for house flipping in recent years. It features midcentury homes with a median sale price of around $260,000. The median price has more than doubled in less than three years, rising from less than $100,000 in 2020.
Fund fix & flips with a trusted local private lender
Texan investors trust Capstone Capital Partners to get them to the closing table. Ditch the bank’s red tape and restrictions, and partner with a private lender who lives, works, and invests where you do. From first contact all the way through servicing, Capstone offers a hometown level of personal service you won’t find with big-box alternative lenders. Our new borrowers often turn into repeat partners - and good friends!
Start your pre-approval for a fix and flip project in the Dallas/Forth Worth Metroplex by answering a few easy questions online.
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