Would you rather invest in Florida or Texas?

Question

and why?

(single family and multi-units)

Matthew Kwan · Answer

HI Terry, it depends what are you looking for. Do you value more on cash flow or higher appreciation? Also the job opportunities and population growth for both states. The one good thing about both states that there are no income taxes so that's a plus. I would personally look towards TX as they have higher growth population than FL and more corporate hubs are slowing moving to TX meaning more job opportunities which will or has already created a high housing demand. If you decide to invest either TX or FL, we are licensed in both states so if you have any financing questions in terms of the mortgage side, feel free to reach out! I'll be happy to help.

@Albert Bui @Carlos Valencia

Luka Milicevic · Answer

I wouldn't really have a "rather" in this argument.

Both states have their own benefits and I'd recommend both states for investing.

It will come down to what you want to do, ultimately.

Narrow down your goals, your buying criteria, and timeline. From there, research which state will be better and then pick.

I would recommend focusing on one state and more specifically one area. That will narrow down your search to what it is that you are exactly looking for.

Eliott Elias · Answer

Texas, particularity Austin. The game here is appreciation. Too many companies and young professionals moving here to not invest.

Account Closed · Answer

I lived all my life in Seattle and recently sold all of our properties because of the erratic behavior of the government, high taxes, homelessness, drugs, crime, disdain for landlords, and so on.

Don't let the hype about Seattle fool you. It really isn't what it used to be.

January Johnson · Answer

I sell ONLY to STR property investors on Florida's Emerald Coast.  Our market is strong, STRs are solid, and prices are softening.  You said SFRs and multi-units, but you didn't note HOW you will be renting them.  I advocate for STRs over LTRs in either property type for my market.  Appreciation is also very good here.

Chad Westfall · Answer

It is really hard to answer that if you are looking at an entire state. There are great parts of each state to invest in and there are areas where perhaps it isn't so great.

Many mention hurricanes in Florida. For those of us who live here, it is what it is. Houses are build to code. So, as long as the properties are not too old, then they will withstand the storms. Flooding is something to consider. I only buy on elevated land here. If my house floods, then the entire city would have to flood.

Texas has tornados, sand and ice storms. Pretty much anywhere you look has something. Again, building codes for each area are different to account of the environments the buildings are built in. I wouldn't really worry about that. To me, as some have mentioned already, you need to decide what type of investment are you looking for (appreciation or income)? Then I would look for areas that offer that.

I personally, live in Pensacola, FL, and finding good management companies and deals here is very challenging. I invest in other markets where I can find the support needed (property management, contractors, etc ).

I would look for markets you like, then ask around these forums for recommendations. Find a team, before committing capital (assuming you are investing in an area you are not planning on living in.)

Nathan Harden · Answer

Just remember that if you do end up choosing to invest in Florida, call a local insurance agent to get some numbers for the specific property. They have storm and flood insurance over there that most places don't, so make sure to run your numbers after getting the insurance quote.

Albert Bui · Answer

Yup, they both have their demons to tackle however, our investing was in WA state because there were no AC condensers/freon and complex boiler/chiller systems like there are in TX/FL plus property taxes are around .8% of FMV or fair market value annalized while other states are higher especialy TX, FL. This doesnt mean TX/FL are worst however I would need a deal that provided a higher gross income, risk adjusted return, or metrics to warrant that extra operating expense and down the line capital expense too(since all 3 of these states are state income tax free - apples to apples from that perspective.)

@Matthew Kwan@Carlos Valencia

Terry Landon · Answer

What makes the most sense from a cash flow and growth perspective.

Would you rather invest in Florida or Texas?

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