Florida or Texas ? Which is more lucrative?

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Florida or Texas ? Which is more lucrative?

Jennifer Gore
Real estate agent · Montecito, CA · Member since 2022 · 15 posts · 2 votes

Thinking about moving to Florida or Texas (from CA...don't hate me) to BRRR properties. Can anyone give me their opinions?

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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
4y

Florida property tax is 1.06%.  Texas property tax is 1.9%.  Advantage Florida.  

Texas is more red than Florida but moving slowly to the middle.  Florida is less red than Texas but moving to the right.  Advantage: depends on your preference.  

Florida has lots of coast which I personally like.  I haven never been to coastal Texas.  Austin and to a lesser degree San Antonio are hip.  I really like Austin area.

both states have growing populations.   In population count Texas is growing more.  Not sure in terms of growth rate who is growing more, but neither state appears to have an issue in expectedpopulation growth.  

Areas get their taxes from somewhere.  Often places with low property taxes have high other taxes and vice versa.  However, if you desire to have multiple properties, a place with high property tax will impact you more than the average person living there.  For this reason (and because I personally like coastal (I also like Austin, but Austin price has already climbed)),I would choose Florida.  

if I were you, I would choose the state you more want to live in. I believe either state can be good locations for REI.

Good luck


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  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    4y

    If I were in your shoes I would lean toward Texas, mainly because you will have to travel there from time to time, and the flight will be shorter. Over time, the flight times do add up to the point where you'll naturally be able to be more active & competitive in the closer market. I invest in both TX & FL, so I don't have a bias either way. 

    I'd also recommend honing in more on individual markets. Texas is huge, and Florida isn't anything to be sneezed at. Both have markets differ considerably. Investing in Austin is a totally different ballgame vs Amarillo. Same with, say, Miami vs Tallahassee.

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    You say moving. You mean permanently :-) ?

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Texas, so much growth and affordable housing here. You really get good value for your money here, as long as you're not in Austin. 

    0Reply
  • Adrian Lemus
    Contractor · Miami, FL · Member since 2020 · 146 posts · 50 votes
    4y

    Busy, Hectic Life, no considerations for others = Miami, from WPB on up its the opposite

    0Reply
  • Nicolas A. Scaron
    Real Estate Agent · Tampa, FL · Member since 2021 · 16 posts · 5 votes
    4y

    Jennifer,

    I will try to be as unbiased as possible, given that I live in the Tampa Bay Area and love my city. From an investment standpoint, there are many investment opportunities out there, the key is knowing how to find them. From a family standpoint, amazing and so much to do (parks, theme parks, beaches, all kinds of attractions, and more.) Feel free to reach out via phone call anytime to chat about this area if you would like. 


    Also, I  used to be stationed in San Diego CA, so I am not able to hate, because I understand the love for Cali. 

    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    4y

    Florida property tax is 1.06%.  Texas property tax is 1.9%.  Advantage Florida.  

    Texas is more red than Florida but moving slowly to the middle.  Florida is less red than Texas but moving to the right.  Advantage: depends on your preference.  

    Florida has lots of coast which I personally like.  I haven never been to coastal Texas.  Austin and to a lesser degree San Antonio are hip.  I really like Austin area.

    both states have growing populations.   In population count Texas is growing more.  Not sure in terms of growth rate who is growing more, but neither state appears to have an issue in expectedpopulation growth.  

    Areas get their taxes from somewhere.  Often places with low property taxes have high other taxes and vice versa.  However, if you desire to have multiple properties, a place with high property tax will impact you more than the average person living there.  For this reason (and because I personally like coastal (I also like Austin, but Austin price has already climbed)),I would choose Florida.  

    if I were you, I would choose the state you more want to live in. I believe either state can be good locations for REI.

    Good luck


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  • Jennifer Gore
    OP
    Real estate agent · Montecito, CA · Member since 2022 · 15 posts · 2 votes
    4y

    @Taylor L. I agree about the distance from CA to TX. So now, all I need to do is figure out where in TX. Houston seems cool because it's a big city and close to the ocean too. 

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  • Jennifer Gore
    OP
    Real estate agent · Montecito, CA · Member since 2022 · 15 posts · 2 votes
    4y

    @Dan Heuschele Good call on property taxes, that's something to definitely take into consideration!

    0Reply
  • Jordan Decuir
    Rental Property Investor · Katy, TX · Member since 2013 · 417 posts · 171 votes
    4y

    @Jennifer Gore

    Houston IS great! In case it is a material factor in your decision: Regarding your ocean comment…I assume that the beaches close to Houston would be very subpar compared to CA and probably also compared to FL.

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Quote from @Jennifer Gore:

    Houston seems cool because it's a big city and close to the ocean too. 


     You mean the Gulf?

    0Reply
  • Allen Wu
    Rental Property Investor · Member since 2021 · 335 posts · 193 votes
    4y

    I’m in Cape Coral and San Antonio…. Both have worked out for me. 

    0Reply
  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    4y

    @Jennifer Gore You picked some big states! Each will have markets that are better suited for different strategies. As a whole though, both are going to be very landlord friendly, so I wouldn't say there's a huge benefit one way or another in those regards

    I can't advise on specific markets, but like @Allen Wu mentioned above, Cape Coral and the general Southwest Florida region could very well suit your criteria

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  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    4y
    Quote from @Jennifer Gore:

    Thinking about moving to Florida or Texas (from CA...don't hate me) to BRRR properties. Can anyone give me their opinions?


    Both are good, and each will be what you make out of it.

    Definite different climates.

    Maybe live 2 weeks in one city, and 2 weeks in another, and then decide which place "feels" like "Jennifer (and her family) fits in here best".

    Good Luck!

    1Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    Recommend you use BRRR and lifestyle as your determinants

    I love Texas, love Houston and would pick Texas over Florida for our REI, but we don't do BRRR.

    Don't move to Houston. It’s to humid due to the massive amount of concrete and paving retaining heat and being in a low water basin. Florida has nothing on Houston when it comes to humidity.  Houston has Flavor.   Most of the other cities are suburbia. 
    . 
    Texas is an oil based economy. You have to ride the ups and downs.    

    Texas conventional banking. Is tough. Higher LTV and most don't like construction loans. Do a comparison on your financing mechanism in both states.

    Texas no zoning out in the counties. Makes it a lot easier on ADU's. Check on Florida.

    Beaches.  Florida by far.  Galveston to Tri Cities is mud.  Then dark sand down to Brownsville.  I like this because of the fishing and flounder gigging at night. You might want sandy beaches and clearer water.  

    BRRR personally from a pure REI standpoint I would pick Texas. Pick selective neighborhoods and outer cities for appreciation growth.

    If I came from California it would be Florida all day long. 
    Two great choices. 

    2Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    Also check out Texas property tax sales.  Best in the US. 

    0Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    4y

    @Henry Clark Roddy's Foreclosure Listing Service is great for that!

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  • Matthew Rolf
    Insurance Agent · TX · Member since 2018 · 362 posts · 175 votes
    4y

    @Jennifer Gore I live west of Houston (Katy) but have a lot of family in Florida and considering moving that way.  For BRRRing, you can do it both places.  My guess is that FL is a bit more lucrative (places with million dollar homes next door to run down properties in several towns I was just in last month).  No complaints about Texas though :)

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 4k+ votes
    4y

    Florida and Texas are too big of an area to compare.

    I would compare cities instead of states.

    Maybe mention some things you want in a city or your job profession and people can give some suggestions

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3y

    @Jennifer Gore

    I am a real estate agent and investor in the Houston, Texas market.

    Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.

    Rent growth and appreciation is steady.

    These cities tend to command quality tenants, and they have great schools.

    Good luck!

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  • Sarita ScherpereelBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
    3y

    Former Houstonian here. Houston is a great place to have a family but I have understood the investing appeal when there are so many other places that offer more dynamic strategies. Property Taxes are great and primary residency is easier to get there than Florida. 

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  • Marc Stevenson
    Real Estate Agent · Dallas-Fort Worth, TX · Member since 2021 · 117 posts · 69 votes
    3y

    @Jennifer Gore I think the coasts are always solid. We've done some airbnb in Florida and many flips and holds in California. 5 years ago I chose Texas to invest in. Moved here and started investing and never looked back. I love the stability the state, the schools, and the pro business politics of the state. I feel it provides a good stable base for long term holds which is my primary strategy. BRRR method for me. Happy Investing!

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  • Jennifer Gore
    OP
    Real estate agent · Montecito, CA · Member since 2022 · 15 posts · 2 votes
    3y

    @Marc Stevenson Thanks for your input! All very valid points I believe in too. Now it's just the matter of having the courage to make the leap to Texas from Santa Barbara. Maybe I'll start small by investing before a major move!

    -Jennifer

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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    3y

    Interesting topic! For the texas folks on here any places you recommend within 30 minutes of the ocean? 

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