A Texas Investor’s Guide to Evaluating Deals with Confidence

Real estate investors in Texas don’t need to guess at deal numbers. There is a clear, repeatable framework that experienced investors across Houston, Dallas, San Antonio, Austin, and Beaumont use to evaluate every opportunity with confidence.
It comes down to three steps. First, get prequalified with a lender so you know the financial boundaries within which you can operate. Second, define a clear buying box — the specific neighborhoods, property sizes, and price points you will pursue — so you have a meaningful basis for comparing opportunities. Third, apply the 75% After-Repair Value rule: your purchase price plus renovation cost should not exceed 75% of the property’s ARV.
Here is the complete framework.