3901 Lark Dr in Temple's Canyon Creek area is listed at $150,000 and has an estimated after-repair value of $235,000. With approximately $45,000–$50,000 in rehab costs and a strong first-time homebuyer exit market, this 3-bedroom, 1,500 sq ft property is a solid base-hit flip opportunity — but at the current asking price, it doesn't pencil out as a rental for buy-and-hold investors.
Every Tuesday I break down a real deal from the Temple and Belton market with actual numbers. This is the Deal of the Week series — no fluff, just the math.
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What Makes 3901 Lark Dr a Good Flip Candidate?
Location is the single most important factor when I evaluate a flip, and this property nails it. 3901 Lark Dr sits in the Canyon Creek area of Temple — a well-established neighborhood in Temple ISD that consistently attracts first-time homebuyers. That buyer pool is your exit strategy, and it's the difference between a smooth flip and a stressful one.
I've seen investors pick up properties in less desirable areas, finish the rehab, and then watch the listing sit for months. They end up taking less than they should have because holding costs eat into their margin. Canyon Creek doesn't have that problem. Updated homes in this area move.
The property itself is 1,500 square feet with a layout that has real potential. There's a formal dining area off the entry that functions as a second living space, a separate room off the garage that could serve as the master, and a bathroom attached to it. The bones are there — you just need to update the cosmetics.
How Do the Flip Numbers Break Down?
Here's how I'd analyze this deal as an active investor in the Temple market:
Purchase Analysis:
- List Price: $150,000
- Suggested Offer: $130,000–$135,000
- Estimated Rehab: $45,000–$50,000
- Closing Costs (buy + sell, ~6%): ~$22,000
- Total Investment: ~$197,000–$207,000
After-Repair Value (ARV): ~$235,000
Estimated Profit at $135K Purchase: $28,000–$38,000
At the full $150K asking price, the margins get thin — which is exactly why I'd start my offer at $130K. I'm very confident in the $235K ARV based on comparable sales in the Canyon Creek area, and that confidence is what makes this a deal worth pursuing at the right price.
What Does the Rehab Involve?
Walking through this property, here's the full scope of work I'd budget for:
Kitchen (full gut): The cabinets, countertops, and layout all need to be replaced. This is a full kitchen renovation — not a paint-and-hardware refresh. Budget $12,000–$15,000.
Flooring (entire house): The carpet is old and stained, and the tile is dated. First-time homebuyers walk in, see that carpet, and walk right back out. Replacing all flooring with LVP throughout would run $6,000–$8,000.
Drywall replacement: The paneling throughout the home is the type that was glued directly to the drywall. When you pull it off, it takes the drywall with it. I always budget for full drywall replacement in these situations rather than hoping you can texture over the damage. Budget $5,000–$7,000.
Roof: Based on the exterior condition, this property likely needs a new roof. That's a non-negotiable for your buyer's lender and inspection. Budget $8,000–$10,000.
HVAC: The home does have central AC, which is a plus — but given the age of the property, a new system may be necessary. Budget $5,000–$7,000.
Paint, fixtures, and finish work: New light fixtures, paint throughout, bathroom updates, and general finish carpentry. Budget $5,000–$7,000.
Total Estimated Rehab: $45,000–$50,000
One thing I always tell investors: get a full inspection before closing. There could be foundation issues, plumbing problems, or electrical work hiding behind that paneling. The $45–50K estimate assumes a cosmetic rehab with roof and HVAC — if the inspection reveals more, adjust your offer accordingly.
Why Doesn't This Work as a Rental at $150K?
At the current asking price, the numbers simply don't pencil for a buy-and-hold investor. A 3-bedroom rental in this area of Temple would bring in approximately $1,400–$1,500 per month. After mortgage, taxes (Bell County's effective rate is approximately 2.2%), insurance, property management, vacancy, and maintenance reserves, you'd be cash-flow negative or barely breaking even.
This is a flip play, not a hold play — at least at this price point. If you could acquire it at $100K–$110K and do a lighter rehab, you'd have a BRRRR conversation. But that's not where this deal sits today.
Who Is This Deal Best For?
Active flippers with rehab experience: If you have contractor relationships in Temple and can manage a $45–50K renovation, this is a straightforward cosmetic flip in a proven neighborhood. The exit buyer pool is strong, and the ARV is well-supported by comps.
Out-of-state investors looking to learn the Temple market: Even if this specific deal isn't your play, following the Deal of the Week series gives you real-time insight into what Temple properties look like, what they cost, and how the numbers work. When the right rental deal hits, you'll be ready to move fast.
First-time flippers who want a low-risk entry: Canyon Creek is forgiving. The buyer demand is consistent, the price point is accessible, and the rehab scope is cosmetic — not structural. This is the kind of deal where you learn the process without betting the farm.
What Would I Do With This Property?
I'd offer $130,000–$135,000 and work this as a flip. The location is too good and the buyer pool is too strong to pass up at the right price. This isn't a home-run deal — it's a base hit. And base hits are how you build a portfolio and keep your pipeline moving.
The key numbers: $135K purchase + $50K rehab + $22K in closing and holding costs = $207K all-in against a $235K ARV. That's roughly $28K in profit on a 4–5 month project. Not life-changing, but consistent and repeatable — exactly the kind of deal that builds momentum.
Frequently Asked Questions
Is Canyon Creek a good neighborhood to invest in Temple TX?
Canyon Creek is one of the most reliable neighborhoods in Temple for both flips and rentals. It's located in Temple ISD, has strong first-time homebuyer demand, and benefits from consistent resale activity. Investors appreciate the predictable buyer pool and solid comparable sales data.
What is the average after-repair value for a renovated home in Canyon Creek Temple TX?
Renovated 3-bedroom homes in the Canyon Creek area of Temple typically sell in the $220,000–$250,000 range depending on square footage, lot size, and finish quality. A 1,500 sq ft home with a full cosmetic rehab can realistically hit $235,000 based on recent comparable sales.
How much does a full cosmetic rehab cost in Temple TX?
A full cosmetic rehab in Temple — including kitchen, flooring, drywall, paint, fixtures, roof, and HVAC — typically runs $40,000–$55,000 for a 1,500 sq ft home. Costs vary depending on material choices and whether you're managing the project yourself or using a general contractor.
Should I flip or rent a $150K house in Temple Texas?
At a $150K purchase price, a property in Temple with significant rehab needs is typically better suited as a flip than a rental. The rental income on a 3-bedroom in most Temple neighborhoods ($1,400–$1,500/mo) doesn't generate enough cash flow to offset the combined costs of purchase, renovation, and financing. At a lower acquisition price, a BRRRR strategy could work.
How do I analyze an investment property in Temple TX?
Start with the purchase price, estimate your rehab costs, and determine the after-repair value using comparable sales within a half-mile radius. For flips, subtract all costs from the ARV to find your profit margin. For rentals, compare monthly rent against your mortgage, taxes, insurance, management, vacancy, and maintenance costs to calculate cash flow and cash-on-cash return. You can use the free Deal Analyzer tool at templetxhomes.net to run your own numbers.
Run Your Own Numbers
Every deal is different, and the best investors do their own analysis. I built a free Deal Analyzer tool on my website that pulls live rental data so you can evaluate any Temple or Belton property in minutes.
If you're an out-of-state investor looking at Temple, I do this analysis for my clients on every property. I'm an active investor myself — flips, BRRRR, mid-term rentals — and I know which neighborhoods and price points actually work.
📞 Call or text: 254-718-4249 📧 Email: [email protected] 🌐 Website: templetxhomes.net
See you next Tuesday for another Deal of the Week.
Written by Taylor Dasch, licensed real estate agent with EG Realty and active real estate investor specializing in investment properties and relocation services in Temple, Belton, and Central Texas.
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