Texas market and taxes

[Laura Ratcliff]

I'm interested in learning more about investing in the Texas market but know very little about it other than that it is growing. I am initially put off by the high property taxes, though, and I am curious how other investors are taking those into consideration when buying in this area. They feel prohibitively high, particularly if prices continue to increase. Curious others' thoughts!

[Andy Webb]

I am a long-time rental owner in Texas (DFW area primarily).  Sure, property taxes are high, as is insurance - don't forget that one.  We protest the tax appraisals every year, win some ground on most, but not all; so there are steps you can take to push back.  And we use an insurance broker to keep shopping rates.  That helps alleviate some of the pressure.

Positives about the market:  landlord friendly - gotta get 'em out?, eviction goes pretty quick here;  business friendly - fundamentals are strong here with so many companies and people moving to the state; no personal income tax; low cost of living, though yes it is creeping upwards; with everything else growing, rents are as well.  I have fixed-rate, cheap FNMA mortgages for the most part and my net cash flow just keeps growing (till I cash out via sale or refi of course).