Question 1

Do Austin flips still pencil in 2026?

Accepted Answer

Only if you buy right. ATTOM's Q1 2026 home flipping report ranked Austin last among major U.S. metros for return on investment, at 2.0% gross ROI, against a 25.4% national gross margin and a $66,000 median gross profit. Gross ROI is resale price against purchase price, before rehab, financing, and holding costs, so the average Austin flip that quarter did not cover its own rehab. All four big Texas metros sat at the bottom of that list: Austin 2.0%, Dallas 4.3%, San Antonio 5.1%, Houston 7.2%. We still fund Austin flips, and we underwrite the purchase price and the comps harder than we would in a market carrying a 25% spread. Run the deal on the fix and flip calculator before you sign the contract, not after.

Question 2

How long will it take to sell an Austin flip?

Accepted Answer

Longer than the last cycle trained you to expect. As of mid-2026 the Austin area is running about 5.9 to 6.0 months of inventory, a median 68 days on market, and a 97.36% sold-to-list ratio, with 55.57% of active listings having already taken at least one price cut. Nationally, flips that resold in the first quarter of 2026 had been held an average of 165 days. Our fix and flip loan runs a 6-month term, interest-only, so build the rehab schedule and the listing window to fit inside it, and price a reduction into your exit rather than hoping you won't need one.

Question 3

What do property taxes and insurance do to my carry here?

Accepted Answer

More than most out-of-state buyers budget for. Travis County adopted a county rate of $0.375845 per $100 of taxable value for FY2026, and that is only one line on the bill; city and school district rates stack on top of it. Investment property gets no homestead exemption and no 10% homestead cap. The 20% circuit breaker cap on non-homestead appraised value requires a full January through December ownership year, so a property bought and sold inside a year never gets it, and that cap is authorized only for tax years 2024, 2025 and 2026 and expires after 2026 unless the Legislature extends it. Expect the go-forward bill to jump when the prior owner's homestead-capped value comes off. On insurance, Texas premiums recorded by the state rose 21.1% in 2023, 18.7% in 2024, and 4.3% in 2025, on a statewide average premium of $3,291 in 2024. Get real tax and insurance quotes for the specific address, and talk to your CPA about your own situation.

Question 4

Can you fund a Central Texas foreclosure auction buy?

Accepted Answer

Yes, and the calendar is the reason speed matters. Texas forecloses non-judicially under Property Code section 51.002. Sales are held on the first Tuesday of every month, between 10 a.m. and 4 p.m., at a designated place at or near the courthouse of the county where the property sits, with written notice posted at least 21 days ahead. If the first Tuesday falls on January 1 or July 4, the sale moves to the first Wednesday. So Travis, Williamson, and Hays distressed inventory arrives in one monthly batch on a hard date. We can get you a term sheet the same day and typically fund within 48 hours of clear title, which puts most files at 5 to 7 days from application, subject to underwriting. Apply now ahead of the posting date rather than the week of the sale.

Question 5

Should I underwrite to city of Austin comps or suburban ones?

Accepted Answer

To the submarket, never the metro average. In July 2026 the city of Austin median sale price was $577,000, down 1.4% year over year, while the wider Austin-Round Rock-San Marcos MSA median was $435,000, up about 1%. Volume split the same way: Travis County sales were up 11.4% and Williamson up 6%, while Hays County, which covers Buda and part of Dripping Springs, was down 12%. Williamson's median was $415,000, down 1.2%; Hays was $367,700, up 1%. Quote a Buda or Dripping Springs exit off metro-wide velocity and you will be wrong. Pull comps at the subdivision level and hold your after repair value to them.

Question 6

Do I need a City of Austin permit for the rehab, and how long is review?

Accepted Answer

For anything structural, mechanical, or a change of use, yes. Austin Residential Plan Review posted new review targets effective July 1, 2026: 5 business days for an interior remodel, a garage conversion or porch enclosure, a demolition, or minor revisions, and 10 business days for new construction and additions. Those targets cover one review cycle, not the whole permit, and correction cycles and resubmittals add calendar. Applications are tracked in the Austin Build + Connect portal, and the city runs an AI Pre-Check beta that gives eligible residential applicants automated feedback before formal intake. Scope the permit path before you close and price the delay into the hold. Our guide on estimating a rehab budget covers how we size the number.

Question 7

How much of my fix and flip deal will USA Mortgage finance?

Accepted Answer

We fund up to 90% of the purchase price and up to 100% of your rehab budget, with the total capped against the after-repair value (ARV). Rehab money is released in draws as the work is completed.

Question 8

What interest rate and points should I expect on a flip loan?

Accepted Answer

Our fix and flip pricing starts around 9.99%, interest-only, with origination typically 1 to 3 points depending on your experience, leverage, and the deal, and every quote is subject to underwriting. Across the market most flip loans run roughly 9% to 12%. On most flip loans, including ours, interest is charged on the full loan amount, rehab budget included. Paying interest only on rehab funds as you draw them exists in the market, but it is the exception, not the rule.

Question 9

Do I need flipping experience to qualify?

Accepted Answer

No. We work with first-time flippers as well as full-time operators. Experience mainly affects your leverage and rate, since a longer track record earns higher loan-to-cost and better pricing. A newer investor can still get funded with a sound deal, a realistic budget, and a clear exit.

Question 10

How fast can a fix and flip loan close?

Accepted Answer

We can get you a term sheet the same day on a complete application, and we typically fund within 48 hours of clear title. The main variable is how fast title and insurance come together, which is why a full close usually runs 5 to 7 days. Because we are the lender and underwrite in house, there is no second layer of approval to wait on.

Question 11

Is there a prepayment penalty if I sell quickly?

Accepted Answer

No. Our fix and flip loans have no prepayment penalty, so paying off early when the property sells costs you nothing extra. Terms run 6 months, and because there is no penalty, selling sooner never costs you extra.

Question 12

Do you check credit or require income documents?

Accepted Answer

We run credit, but this is an asset-based loan, so the property, your budget, and the ARV matter most. We do not ask for W-2s or tax returns to qualify a flip. We will want to confirm you have reserves to carry the project to its exit.

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