Wholesaling Fixer-Upper Houses in Texas
Wholesaling fixer-upper houses in Texas is the core of the business: dated, worn houses that need work, bought at a price that leaves room for a flipper or landlord to fix them up. Texas brings its own repair profile, from hail-beaten roofs to overworked air conditioners, and getting those numbers right is what makes buyers keep coming back to you.
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The short answer
How do you price a fixer-upper for a Texas wholesale deal?
Start from the after-repair value, subtract honest repairs and the buyer’s profit, and work back to your offer.
Most Texas flippers use some version of the 70 percent rule: they pay about 70 percent of the after-repair value minus repairs, adjusted for the local market. Your job is to estimate both numbers well. Because Texas does not publish sale prices, the value side depends on MLS comps from an agent, and the repair side depends on knowing what Texas houses typically need.
Fixer-Upper Houses in Texas at a glance
| Pricing rule of thumb | About 70% of after-repair value, minus repairs |
|---|---|
| Common big items | Roof, HVAC, foundation, plumbing, windows |
| Contractors | No statewide general contractor license; trades are licensed |
| Licensed trades | Electricians, plumbers and HVAC technicians |
| Permits | Set by each city; required for most major work |
| Buyers | Flippers, landlords and BRRRR investors |
The opportunity
Why Texas has so many fixer-uppers
Texas built huge numbers of homes from the 1950s through the 1980s, and many still have original kitchens, single-pane windows and aging systems. Add frequent hail, long hot summers and shifting clay soils, and houses wear out faster than owners can keep up. That steady supply keeps Texas flippers hungry for well-priced deals.
Hail-worn roofs
North and Central Texas see frequent hail, so many roofs need replacing.
Hardworking HVAC
Air conditioners run for months a year and often need replacing in older homes.
Mid-century stock
Millions of older homes are ready for a full update.
Lead sources
How to find fixer-upper houses in Texas
- Driving for dollars. Worn roofs, peeling trim and window units show from the street. Our driving for dollars guide explains the system.
- Long-held homes. Owners of 20 years or more often have houses that were never updated.
- Expired and failed listings. Retail buyers back out after inspections reveal big repairs. See Texas expired listings.
- Absentee rentals. Rentals with deferred maintenance are classic fixer-uppers. See Texas absentee owner properties.
- Stack with distress. Fixer-uppers that are also inherited, vacant or tax-delinquent offer the deepest discounts.
Your exit
Making buyers trust your numbers
Send buyers a clear repair list with rough costs, plus photos of the roof, HVAC, electrical panel, water heater and any foundation cracks. Note the roof’s age and whether hail damage is visible.
Use real comps for the after-repair value, preferably renovated sales within half a mile in the last six months. Inflated values are the fastest way to lose buyers in Texas, where they check MLS data themselves.
Step by step
How to start wholesaling fixer-upper houses in Texas
- Walk the whole house. Check roof, attic, HVAC, panel, plumbing, foundation and windows.
- Estimate repairs by item. Use our repair cost guide and local contractor prices.
- Find the after-repair value. Use renovated comps and the ARV calculator.
- Set your offer. Work back with the MAO calculator and check your fee with the wholesale fee calculator.
- Use an option period. Texas contracts often include a short option period for inspections.
- Sign and disclose. Use a purchase contract and the written assignment disclosure Texas requires.
- Assign and close. Share your scope with the buyer and close through title.
Your checklist for wholesaling Fixer-Upper Houses in Texas
- Pull three to five sold comps for updated houses within a mile and the last six months to set the after-repair value.
- Itemize repairs room by room and system by system instead of using one round number.
- Add a contingency of about 10 percent for surprises behind walls and under floors.
- Apply the buyer’s formula, often 70 percent of ARV minus repairs, then subtract your fee to find your contract price.
- Share photos, the repair list and comps in your deal sheet so cash buyers can decide quickly.
- Walk the house with a contractor or experienced buyer before your option period ends.
- Note the age of the roof, HVAC and water heater on your deal sheet.
A Texas example: a 1960s brick ranch
| After-repair value | $285,000 |
|---|---|
| Repairs itemized | Roof $11,000, kitchen $22,000, baths $16,000, other $13,000 |
| Total repairs | About $62,000 |
| 70% rule maximum | About $137,500 |
| Contract price | $135,000 |
| Cash buyer pays | $147,000 |
A 1960s brick ranch in Garland had its original kitchen, two worn bathrooms and a roof near the end of its life. The owner had inherited it and wanted to sell as-is. Three nearby updated houses sold for about $285,000.
You itemized repairs line by line rather than guessing a round number: roof $11,000, kitchen $22,000, baths $16,000 and $13,000 for paint, floors and fixtures. At 70% of ARV minus $62,000, the buyer’s maximum was about $137,500. You signed at $135,000 with the written assignment disclosure.
Because your numbers matched what buyers expected, the first flipper who walked it paid $147,000 for the assignment. Itemized repair budgets build trust with cash buyers, and that trust makes your next deal easier to sell.
Texas rules to know
Licensing, permits and the option period
Texas has no statewide license for general contractors, but electricians, plumbers and HVAC technicians must be licensed by the state. Buyers who pull permits will need licensed trades for that work, so price accordingly, and tell buyers when unlicensed work may need correcting.
Texas purchase contracts commonly include an option period, during which the buyer can terminate for any reason after paying a small option fee. Wholesalers use this time to confirm repairs and line up a buyer, but use it honestly and tell the seller how it works.
Learn it with a mentor
Sharpen your repair estimates with us
Good repair numbers are the backbone of every deal. Mentorship students walk through their first estimates with a mentor.
FAQ
Fixer-Upper Houses in Texas: common questions
What is the 70 percent rule?
A rule of thumb where investors pay about 70 percent of after-repair value minus repairs. Many Texas buyers adjust it for their market.
Do Texas contractors need a license?
There is no statewide general contractor license, but electricians, plumbers and HVAC technicians must be state-licensed.
Is wholesaling fixer-upper houses in Texas the best place to start?
For most new wholesalers, yes. Supply is large and flipper demand is steady.
What is an option period in Texas?
A short window after signing when the buyer can cancel for any reason, after paying an option fee.
What repairs are most common in Texas fixer-uppers?
Roofs, HVAC systems, foundation work, plumbing and dated kitchens and baths.
Keep going
More Texas wholesaling guides
Read the full Texas wholesaling guide or pick another situation below.
Guides that go deeper
More Texas situation guides
Sources. Last reviewed November 2026.
Your next step
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