Inside an early-1900s house a short walk from Woodlawn Lake, Matthew and Melissa Molina point out the windows, half-bathroom, full master suite, closets, washer and dryer they’ve added since buying it last summer.
The couple and their contractors have updated the floor plan, fixed the foundation, made electrical repairs and improved the landscaping over the past eight months, plugging six figures into sprucing it up.
When they list it in a few weeks, they’re confident it will sell quickly.
“This is one of the nicer houses you’re going to get in this area,” Matthew Molina said. “The market is so hot.”
The Molinas started buying, renovating and reselling or renting out homes in San Antonio in 2015. After gutting and rehabilitating a house for themselves, they said they got addicted.
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But house flipping is getting harder, with the competition for homes intensifying. Hedge funds, private equity firms and other out-of-state buyers are streaming into San Antonio, snapping up properties in a market that already had too few for-sale houses to meet demand.
Prices have skyrocketed.
“The flipping is out of control,” Matthew Molina said.
“We want to own as many houses as we possibly can get our hands on, because the market is so hot that you can accidentally make money,” he added. “That’s why I think there are so many people flipping right now, because your mistakes are being forgiven.”
After slowing during the coronavirus pandemic in 2020, home flipping nationwide and in San Antonio skyrocketed in 2021.
People bought, rehabilitated and resold 323,465 single-family homes and condos last year, a 26 percent increase from 2020 and the highest level since 2006, according to real estate data company Attom.
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Attom defines a flip as a home or condo that was sold within a year of a previous sale, which represented 5.5 percent of all sales in 2021.
Among metro areas with a population of at least 1 million, San Antonio ranked third for the biggest annual flipping-rate jump with a 56.2 percent increase. The rate jumped 111.2 percent in Austin, 34.4 percent in Dallas and 32.3 percent in Houston.
“When times are good, everybody wants to jump in,” said Sell My San Antonio House owner Nick Disney, who renovates and resells or rents out homes.
Disney said he will buy a house in any condition. He makes cash offers based on location, market value and repair costs. Sellers typically need to make major repairs, don’t want to go …….