Flipping houses has become a popular investment strategy in the real estate market. Buying a property, renovating it, and selling it for a profit can be a lucrative venture if done correctly. If you’re considering house flipping in Houston, you’ve made a wise choice. The city offers a favorable environment for real estate investors, with its thriving economy, growing population, and diverse housing market. In this article, we will explore the best neighborhoods for flipping houses in Houston, along with valuable insights and tips to help you succeed in your house flipping endeavors.
Houston, the largest city in Texas and the fourth-largest in the United States, has a dynamic real estate market that presents numerous opportunities for house flippers. With a booming economy driven by industries like energy, healthcare, and aerospace, Houston attracts a steady influx of new residents seeking job opportunities. This population growth, coupled with a shortage of housing inventory, creates a demand-supply gap that can be capitalized upon by astute real estate investors.
Why is Houston a Great Market for House Flipping?
Houston offers several advantages that make it an attractive market for house flipping. First, the city’s robust economy and job growth contribute to a steady demand for housing. As more people move to Houston for employment opportunities, the need for quality homes increases. Additionally, Houston’s diverse housing market provides a wide range of options for investors, from single-family homes to townhouses and condominiums.
Furthermore, Houston’s comparatively affordable property prices allow investors to acquire properties at a lower cost, leaving room for potential profits. The city’s lenient zoning laws and relatively straightforward permitting process also make it easier for investors to navigate the regulatory landscape. Overall, Houston’s strong market fundamentals, coupled with a favorable economic climate, create a conducive environment for successful house flipping.
Best Neighborhoods for Flipping Houses in Houston
In determining the best neighborhoods for flipping houses, we have relied on comprehensive data available on Redfin, a prominent real estate platform. This data encompasses essential factors such as the median house sale price, the number of houses sold, and the median days to sell in each neighborhood. We have only listed the neighborhoods that we feel are affordable to investors that don’t have access to millions of dollars to invest in the very rich neighborhoods like River Oak, West University, etc.
1. Greater Heights
Median Sale Price: $650,000.00
Number of Homes Sold: 272
Median Days on the Market: 18
The Greater Heights is a historic neighborhood in Houston that is home to a mix of old and new homes. The neighborhood is known for its vibrant arts scene, its proximity to downtown Houston, and its diverse population. Houses in the Greater Heights are often affordable, making them a good option for flippers who are looking for a fixer-upper.
2. Cottage Grove
Median Sale Price: $474,900.00
Number of Homes Sold: 35
Median Days on the Market: 14
Cottage Grove is a quiet neighborhood in Houston that is home to many families. The neighborhood is known for its good schools, its safe streets, and its proximity to Memorial Park. Houses in Cottage Grove are typically modest in size, but they are often well-maintained, making them a good option for flippers.
3. Memorial
Median Sale Price: $665,000.00
Number of Homes Sold: 157
Median Days on the Market: 22
Memorial is a large neighborhood in Houston that is home to a mix of families, professionals, and students. The neighborhood is known for its excellent schools, its safe streets, and its proximity to Memorial Park and the Hermann Park Zoo. Houses in Memorial are typically large and well-maintained, making them ideal for flipping.
4. Afton Oaks
Median Sale Price: $829,154.00
Number of Homes Sold: 13
Median Days on the Market: 12
Afton Oaks is a neighborhood in Houston that is known for its luxury homes. The neighborhood is home to some of the most expensive real estate in the city, and it is known for its large lots, its stately homes, and its proximity to River Oaks. Houses in Afton Oaks are often updated and remodeled, making them a good investment for flippers.
5. Washington Avenue-Memorial Park
Median Sale Price: $515,000.00
Number of Homes Sold: 190
Median Days on the Market: 23
Washington Avenue-Memorial Park is a trendy neighborhood in Houston that is home to many young professionals and families. The neighborhood is known for its eclectic shops and restaurants, its vibrant nightlife, and its proximity to Memorial Park. Houses in Washington Avenue-Memorial Park are typically small and updated, making them a good option for flippers who are looking for a quick turnaround.
6. Lazybrook-Timbergrove
Median Sale Price: $544,500.00
Number of Homes Sold: 59
Median Days on the Market: 25
Lazybrook-Timbergrove is a quiet neighborhood in Houston that is home to many families. The neighborhood is known for its good schools, its safe streets, and its proximity to the Lazybrook Greenbelt. Houses in Lazybrook / Timbergrove are typically modest in size, but they are often well-maintained, making them a good option for flippers.
7. East Downtown
Median Sale Price: $391,250.00
Number of Homes Sold: 23
Median Days on the Market: 20
East Downtown (EADO) is a rapidly growing neighborhood in Houston, Texas. It is located just east of downtown Houston and is home to a variety of businesses, restaurants, and cultural attractions. EADO is also home to a number of historic buildings that are being renovated and converted into apartments, condos, and lofts.
8. Willow Meadows-Willowbend
Median Sale Price: $364,950.00
Number of Homes Sold: 40
Median Days on the Market: 21
Willow Meadows-Willowbend is a large neighborhood in Houston that is home to a mix of families, professionals, and students. The neighborhood is known for its excellent schools, its safe streets, and its proximity to the Willow Meadows Park and the Willowbend Country Club. Houses in Willow Meadows / Willowbend are typically large and well-maintained, making them ideal for flipping
9. Garden Oaks
Median Sale Price: $712,500.00
Number of Homes Sold: 13
Median Days on the Market: 41.
Garden Oaks is a charming, historic neighborhood located in north Houston. It is known for its eclectic mix of older homes, tree-lined streets, and vibrant local businesses. The neighborhood is also home to several parks and recreation facilities, making it a great place for families and outdoor enthusiasts.
10. Briar Forest
Median Sale Price: $369,700.00
Number of Homes Sold: 146
Median Days on the Market: 22
Briar Forest is a neighborhood located in west Houston known for its large, well-maintained homes, tree-lined streets, and proximity to shopping, dining, and entertainment. The neighborhood is also home to several parks and recreation facilities, making it a great place for families and outdoor enthusiasts.
Factors to Consider when Choosing the Best Place to Flip Houses
When choosing a neighborhood for flipping houses in Houston or any other city, several factors should be taken into consideration to ensure the success of your investment. Firstly, it’s important to analyze the market demand in a particular neighborhood. Look for areas experiencing population growth, job opportunities, and a rising trend in property values. A neighborhood with high demand will attract more potential buyers, increasing the likelihood of a quick sale for your flipped property.
Understanding property prices in different neighborhoods is also crucial.
Seek out neighborhoods where property prices are relatively low compared to the expected after-repair value (ARV). This will enable you to purchase properties with a favorable profit margin, maximizing your potential returns.
Evaluate the potential for improvement.
Another key factor to assess is the potential for renovation and improvement in the neighborhood. Identify areas where properties are in need of repairs and upgrades. This allows you to add value through renovations, increasing the overall worth of the property. Evaluating the potential for improvement ensures that your investment has room for substantial returns.
Consider the availability of amenities and infrastructure in the neighborhood.
Desirable amenities such as schools, parks, shopping centers, and convenient transportation options can significantly enhance the attractiveness of a neighborhood to potential buyers. Neighborhoods with such amenities tend to attract more interest and may contribute to a faster sale of your flipped property.
Ask about crime rates.
Additionally, it’s important to investigate the crime rates in different neighborhoods. Buyers prefer neighborhoods with low crime rates as it ensures their safety and impacts property values positively. Choosing a neighborhood with a low crime rate can make it easier to sell your flipped property.
Watch out for promising neighborhood developments.
Lastly, researching any planned or ongoing development projects in the neighborhood is a strategic move for house flippers. Infrastructure improvements, commercial developments, or other projects can have a positive impact on property values. Identifying neighborhoods with promising future developments can contribute to long-term profitability in your house flipping endeavors.
Conclusion
Houston’s flourishing economy and diverse housing market create ideal opportunities for house flipping. When choosing the top neighborhoods to invest, consider factors like market demand, property prices, and amenities to maximize returns. Stay tuned for Part 2 of this series, covering tips for successful house flipping, using hard money loans, and finding reliable partners for house flipping in Houston.
