Houston House Flipping Guide

Houston House Flipping

Having a good Houston house flipping guide will help new or active house flippers do business successfully in this city. Many people continue to move to Houston due to a strong economy from the renewable and non-renewable energy industry, along with biomedical research and aeronautics. With a low unemployment rate and a young and vibrant workforce, Houston is an excellent place to invest in real estate. Zero income taxes means Houston is attractive to to all home buyers with current income. The Great Recession made a dent in the housing starts, so market supply is low comparable to housing demand, making it great for investors. The overall population of Houston is growing and working adults with families are looking for homes now and in the future. Houston boasts some very good neighborhoods and school districts, so families can feel great living there. For flippers, there are house flipping and real estate investment groups available to join to learn more about the business and to meet other investors.  Overall, a new flipper should not be afraid to start house flipping in Houston.

Key House Flipping Statistics for Houston

Population2,312,717 and 5 year growth rate of 8%
IncomeAverage household income of $63,802 and 5 year growth rate of 5%.
Home Value Average price of 3 bedroom 2 bath home of $173,000 and 5 year growth rate of 54%
Cost of Living Houston is 94 versus 100 for U.S. cost of living index
New Home Starts 57,021

Houston Property Taxes

Harris County

For a property worth a median value of $131,700 in Harris County, Texas, the median property tax is $3,040. Harris County collects, on average, receives 2.31% of a property’s fair market value as property tax

Harris County’ property tax can be considered one of the highest in the United States.

About 4.26% of residents’ yearly income is paid as property tax in Harris County.

Harris County Tax Assessor

https://www.hctax.net/Property/PropertyTax

Fort Bend County

The median property tax in Fort Bend County, Texas is $4,260 per year. This is for a home worth a median value of $171,500. On average, this is 2.48% of a property’s fair market value.

Fort Bend County collects about 4.66% of residents’ yearly income as property tax.

Fort Bend County Property Tax is levied directly on the property, unlike other taxes that are attached to individuals. Unpaid property tax can lead to a property tax lien can result from unpaid property taxes. These will remain attached to the property’s title and is the responsibility of the current owner of the property.

A Fort Bend County Homestead Exemption may exist, and can reduce the appraised valuation of a primary residence before calculating the property tax owed. This will result in a lower annual property tax rate for homes occupied by their owner.

100% of your Fort Bend County property taxes can be deducted from your taxable income on your Federal Income Tax Return as an itemized deduction. 

Fort Bend County Tax Assessor-Collector

https://www.fortbendcountytx.gov/government/departments/financial-administration/tax-assessor-collector/property-taxes

Montgomery County

The median property tax in Montgomery County, Texas is $3,123 per year for homes at a median value of $157,100. Montgomery County collects about 1.99% of a property’s assessed market value as property tax.

This amounts to about to about 4.07% of residents’ yearly income. 

Montgomery County Property Tax is levied directly on the property. 

A homestead exemption may exist for properties considered the primary residence of taxpayers.

Getting a Homestead Exemption may keep a home from being repossessed because of a property tax lien due to unpaid Montgomery County property taxes or other types of debt.

Montgomery County Tax Office

https://www.mctx.org/departments/departments_q_-_z/tax_office/property_tax.php

Other Key Information

Flood Zones

Houston faces some significant flooding risks due to its low lying area and proximity to the Gulf of Mexico. In 2017, Hurricane Harvey caused large scale flooding to residential neighborhoods in Houston, including affecting over 100,000 single family homes. However, Montrose, Fall Creek, and other neighborhoods did not experience any flooding during this time, so some place are relatively safe from flooding damage.

Harris County Flood Education Tool:

http://www.harriscountyfemt.org/

See the Harris County Flood Control District for more information on on flooding:

https://www.hcfcd.org/

City of Houston Map Viewer

https://cohegis.houstontx.gov/cohgisweb/houstonmapviewer/

Crime Rates

Houston Crime Rate 520.7 crime index versus 280.5 U.S. average

Houston Transportation

The Metropolitan Transit Authority of Harris County, Texas (METRO) provides public transportation in the form of buses, trolleys, and lift vans throughout Houston.

METRORail is a light rail service in the city that began operations in 2004. Currently the track runs approximately 13 miles going from downtown Houston. METRO operates an extensive park-and-ride bus system for the many outlying suburban areas.

METRO is currently in the beginning of a 10-year expansion plan to add five more sections to connect to the current rail system.

Houston is served by two commercial airports. The largest is the George Bush Intercontinental Airport (IAH), which is the 11th-busiest in the United States for total passengers. Bush Intercontinental is United Airlines second largest hub.

Amtrak, the national rail passenger system, provides service to Houston. This runs via the Sunset Limited (Los Angeles to New Orleans), which stops at the Houston Station on the north side of downtown.

By the year of 2020, a high-speed rail line is proposed to run non-stop from Houston to Dallas.

Greyhound Lines operates services from five stations in Houston.

Other bus companies include:

  • Kerrville Bus Company
  • Megabus
  • Shofur
  • El Expreso Bus Comany
  • Tornado Bus Company
  • Omnibus Express

Announced in 2013 was the “Houston Complete Street and Transportation Plan”. This combined with the “ReBuild Houston” initiative approved in 2010 will create many new streets using the complete street guidelines.

Houston currently has over 300 miles of bike lanes, bike routes, shared lanes, and rails-to-trails across the city area.

Neighborhoods to Flip Houses in Houston

Katy

This neighborhood is outstanding for public schools and families. Crime is low and nightlife is good. Median home values sit around
$164,500.

Sugar Land 

Median sales price in this neighborhood is around $300,000. This area has great schools, one of which is Cornerstone Elementary School.

House Flipping Resources in Houston

Foreclosure Auctions

Foreclosure auction listings for Houston can be found online

https://www.zillow.com/houston-tx/foreclosures/

https://www.auction.com/residential/houston%20texas_qs/active_lt/resi_sort_v2_st/y_nbs/

Harris County Tax Sales

https://www.hctax.net/Property/TaxSales/TaxSales

Fort Bend County Tax and Property Sales

https://www.fortbendcountytx.gov/government/departments/administration-of-justice/constables/constable-precinct-1/tax-and-property-sales

Fort Bend County Foreclosure search

https://www.fortbendcountytx.gov/i-want-to/foreclosures

Tax Assessor

Montgomery Central Appraisal District

http://mcad-tx.org/

Montgomery County Tax Office

https://actweb.acttax.com/act_webdev/montgomery/index.jsp

Harris County Property Tax Statement search

https://www.hctax.net/Property/PropertyTax

Fort Bend County Tax Assessor-Collector

https://www.fortbendcountytx.gov/government/departments/financial-administration/tax-assessor-collector

Montgomery County Tax Office

https://www.mctx.org/departments/departments_q_-_z/tax_office/index.php

Zoning

Fort Bend County Building Codes / Zoning

https://www.fortbendcountytx.gov/government/departments-e-n/engineering/building-codes-zoning

Fort Bend County Community Development

https://www.fortbendcountytx.gov/government/departments/county-services/community-development

Title Searches

EDIT Each county clerk’s office in the state of Texas keeps electronic public records that include real property transactions, deeds, titles, tax liens and other pertinent information. If you need to do a title search you can click through to the appropriate office through the official state website, and the Texas State Library also provides the necessary information and links to conduct a title search.

Building Code and Permits

Harris County Engineering Department (HCED) – Permits Division

http://www.eng.hctx.net/permits

City of Houston Planning and Development Department

http://www.houstontx.gov/planning/Publications/inform_brch/landreg_dev_broch_jan2012.pdf

Montgomery County Permitting Deparment

https://www.mctx.org/departments/departments_d_-_f/environmental_health/permitting/index.php

Fort Bend County Permits

https://www.fortbendcountytx.gov/government/departments/county-services/engineering/permits

Houston House Flipping Tips

Do’s

Areas above 150k in value can be great opportunities for flippers in Houston.

Dont’s

Some properties are not going to be worth the effort due to the extent of repairs and time it will take to resell them. Don’t buy homes that will cause a longer repair or resale time frame.

What to Look Out For

Look out for homes that have too many of the difficult fixes. These will lengthen the project and cost more. Be patient and find the “right” property, as the wrong one can be filled with costly problems.

Real Estate Flipping and Investing Groups in Houston

The Realty Investment Community of Houston

The Realty Investment Community of Houston is a non-profit trade association serving the real estate investment community of Houston. Also known as the RICH Club, it is an affiliate of the National Real Estate Investment Association (NREIA), a nationwide non-profit group that provides education related to real estate investment.

https://richclub.org

Houston House Flipping Outlook

Houston’s house flipping outlook is positive. The city and surrounding areas continue to grow, fueled by Houston’s strong economy and a growing population. By being prepared and using all available resources to guide you, flipping houses in Houston can be a very lucrative endeavor. 

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