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Hard money and fix and flip loans in Dallas, Texas
Loans for bungalow and ranch house renovations, duplexes, rentals and infill new construction across the City of Dallas.
The Dallas market for investors
Dallas is the center of one of the fastest-growing metro areas in the country, with steady job growth and population gains that keep demand high for both rentals and renovated homes. Its housing ranges from 1920s bungalows and Tudors in Oak Cliff and East Dallas to postwar ranch houses across the city.
Investors renovate dated houses for resale, hold single-family rentals and duplexes, and build new homes and townhomes on infill lots near downtown. Dallas has more rules for landlords than most Texas cities, from annual rental registration to historic district review, so a local plan helps.
Neighborhoods investors ask about
- Oak Cliff, Kessler Park and Winnetka Heights: older homes near the Bishop Arts District, some in historic districts
- East Dallas, Lakewood and the M Streets: higher-priced bungalows and Tudors, much of the area under conservation or historic rules
- Pleasant Grove and Southeast Dallas: lower-priced ranch houses to renovate and rent
- South Dallas and Fair Park: lower entry prices and infill lots
- Lake Highlands and Northwest Dallas: 1950s to 1970s homes ready for updates
Plan for these on a Dallas deal
- Investment property gets no homestead exemption, and combined property tax rates in the metroplex are often around 2% of value or more. For 2024 to 2026 the taxable value of non-homestead property worth $5 million or less can rise no more than 20% a year, but the limit resets when the property sells. Budget with full market value.
- Texas has no transfer tax and no mortgage recording tax, so closing costs are mostly title insurance, at rates set by the state, and recording and lender fees.
- Dallas requires owners of rented single-family homes, duplexes and condos to register each year, and the city inspects each single-family rental at least once every five years.
- Dallas’s 2023 ban on short-term rentals in single-family zones has been blocked by the courts while the city appeals, and operators must still register. Underwrite on long-term rent unless the address can legally host short-term rentals.
- Exterior work in historic districts such as Swiss Avenue, Munger Place, Junius Heights and Winnetka Heights needs a certificate of appropriateness from the Landmark Commission.
- Expansive clay soil makes foundation movement common. Get a foundation inspection before you set the rehab budget.
Loans available in Dallas
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of single-family rentals, duplexes, townhomes and small multifamily | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home, a duplex, a build-to-rent home or a small apartment building, lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Dallas hard money loans: common questions
Yes. Dallas is our focus market. We finance fix and flips at up to 90% of purchase and 100% of rehab, rentals at up to 85% loan-to-value, and ground-up construction at up to 90% of cost for experienced builders.
Yes. Rented single-family homes, duplexes and condos must be registered with the city every year.
The city’s ban in single-family zones has been blocked in court for now, but the case is on appeal and registration is required. We underwrite on long-term rent unless the address can clearly host short stays.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. Closings are handled by a Texas title company.
Looking at a property in Dallas?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.