Hayward, CA · Member since 2017 · 70 posts · 7 votes
Is it worth it to invest in Texas real estate? The property taxes are 2.6%+ in many areas. That is almost triple that in California. What are the upsides and downsides to investing in Texas real estate?
Would it only make sense to buy less expensive properties in good locations to make profit?
Texas is growing and the demand for housing grows with it.
You first need to establish your investing strategy - are you looking for low cash investment with high cash flow? Maybe you prefer buying in a hot and growing area for less cash flow but more appreciation?
Taxes are high in Texas, but that is only one of the factors to consider when choosing a location.
@Bryan Tasumi Yes. We have high rent rates and appreciation. Of course we are a huge state. Make sure you get in one of the growing areas. I live and invest within 10 miles of two of the top three fastest growing cities in the country. It is easy to find a fast growing city in Texas. Half of the top 12 fastest growing large cities are in Texas.
Those area are highly competitive. I prefer to direct clients to areas of growth. The big box stores coming into an area is a good sign IE Walmart, Costco or even Starbucks. New construction builders will even let you buy a few homes at a time and you will not have any rehab to do.
Are duplexes that common in the outlying areas of Houston and Austin? Back before the RE Bubble collapse, we had companies that would come to our investment group meetings and offer a pre construction investment ($250K for a duplex in AZ or NV) with 36 month guarantees of renter placement and even a buyback program. I know of some people that did well with those, but others that were overextended and lost all of their RE portfolio.