I spent $150K trying to flip a house in Dallas like those reality TV gurus — but it’s been sitting on the market and my mortgage costs are suffocating me. What are my options?

According to a CoStar Group analysis reported by local news channel WFAA, rent growth in the Dallas-Fort Worth (DFW) area is down 1.4% year-over-year, but rent prices increased month-over-month in the first four months of 2024. And more than 5,000 dwelling units were filled in the first quarter, with DFW coming second only to New York City in terms of rental demand in the past 12 months.

You could look into long-term rentals or, depending on how your area is zoned, you might also want to consider short-term rentals using services like Airbnb. You may be able to rent at a higher nightly rate if you're in a desirable part of Dallas.

Renting out your property could potentially gradually cover your mortgage and other expenses as you wait for home prices to appreciate enough to sell and make a profit.

Make strategic, low-cost modifications

If your home isn't selling, it's worth checking with a real estate agent to see if there are any tweaks you could make to better appeal to your target market.

It's likely not worth sinking a lot more money into the property if you've already done some renovations. Still, even minor tweaks like changing out light fixtures or painting cabinets could possibly make the house more desirable.

You never want to over-improve the property for the area, though, so always see what other homes on the market look like. If your house is already comparable or better than the others out there, making any additional upgrades may not help your situation.

Ensure the price is right

The Dallas housing market is showing signs of a slowdown, with Redfin reporting a 2.3% drop in home prices from last year as of August. Homes are also taking an average of 42 days to sell compared to 29 in 2023.

If your home is priced above the current market value, you're unlikely to find a buyer for it — especially with sellers no longer enjoying the favorable conditions that led to bidding wars during the pandemic.

Lowering the price is one option if you want to offload the property ASAP. Just remember that if you can't sell for enough to exceed your mortgage and renovations, plus closing costs and fees, you won’t be making a profit.

There's also a chance the market could turn around. Some experts predict an uptick in demand as mortgage rates fall in response to multiple planned rate cuts by the Federal Reserve in the coming months. If you can hold on a little longer, you could potentially benefit from increased buyer interest.

Consider refinancing your mortgage

Finally, if you're struggling with your mortgage, you could try to reduce the monthly payments. You can do this by refinancing — although there are up front closing expenses, so this approach only makes sense if you decide you're going to keep the house for a while. Always do the math, though, to see how many months it will take for lower payments to cover closing expenses so you break even.

By exploring these options, you can hopefully find a way to save your investment. For future reference, it's also worth remembering that there are less risky ways to get into real estate besides flipping, including purchasing real estate investment trusts. They can provide exposure to this asset class without the stress of actually owning a property of your own.