The US is changing. It all started with the pandemic in 2020. But now that millions of Americans can work remotely, they’re fleeing the big expensive cities on the coast and moving to more affordable, enjoyable states.
And what is one of the states that most people are going to? Texas, of course.
Texas has its arms open to all the people feeling the Bay Area, as well as the cold cities of the Midwest. And this is ideal for those who are already invested in Texas property or planning to purchase more real estate in TX.
Are you wondering how you can boost your chances of investment success in the Lonestar state? Keep reading for six helpful tips for maximizing your next Texas property investment.
Know Where People Are Moving To
Don’t marry a market. You don’t want to get stuck investing in a market that isn’t doing well.
Instead, look at the trends. Where are the newcomers to Texas moving to?
While jobs and job creation an important factors, it’s no longer the only factor. If it were, Austin would be near the top of the list. More and more tech companies are setting up shop in Austin as it draws a vibrant and educated workforce to its city limits.
Even Elon Musk himself sold everything and moved to the area thanks to a more favorable business climate.
But big cities aren’t the only place people are flocking to. With so much remote work, people are moving away from bigger cities into smaller, safer communities.
McKinney was once named the best city to move to in Texas. And to this day, people are still flocking to it as it boasts a safe atmosphere and excellent schools.
The greater San Antonio area has also been a popular place for migratory transplants.
Short-Term vs Long Term
When deciding on a market, you also need to know which ones are best suited to long-term tenants and which ones are vacation destinations.
Generally, the suburbs that surround the big cities like Houston, Dallas, and Austin, are ideal for long-term tenants. This is where good schools are located.
It’s where much of the recreation is such as trails and parks. And it’s where people are willing to spend more on their house than if they were closer to the city.
But there are plenty of areas in Texas that are better suited to short-term vacation rentals. Fredericksburg is one of those locations.
It’s at the heart of Texas wine country. When people are looking for a weekend away from the big city, they’ll drive to a town like this for a quiet area that offers excellent views, food, and beverages.
Long-term rentals are less in demand here, so know what strategy you are pursuing.
Follow the Renters
Texas is home to some of the best universities in the country. That means countless kids flooding college towns, renting apartments and homes for anywhere from one to four years, or even longer.
And while renting to college students isn’t every investor’s cup of tea, it can be a very profitable Texas property investment for those willing to manage it well.
At the very least, you have a constant stream of renters coming in every single year. It’s unlikely your place is going to sit vacant very often.
College Station, home to Texas A&M University, is one of the best places to do this. Other college towns include Arlington, Canyon, Denton, and Lubbock.
Look for Opportunity Zones
People invest in real estate for a myriad of reasons. But one of the biggest is the tax advantages of real estate.
There are countless ways to save money on taxes, making it one of the best places to park your wealth if you want to keep more of it to yourself.
So it’s a bonus when there are investing strategies that are even more tax-efficient than standard real estate. In Texas, that means Opportunity Zones.
These opportunities exist to encourage investors to boost the livability of homes in low-income neighborhoods. It’s all about transforming communities by providing better housing conditions, which in turn, leads to economic growth or that area.
In Texas, Austin real estate is ripe with opportunity zones giving you even more tax incentives for investing in this state.
Find the Right Property Manager
Rental property investing can be hard work, especially as your portfolio grows. Trying to manage all of your units by yourself takes a ton of time and energy.
Doing that ensures you never have time to find new deals, as you’re stuck managing your current ones. Luckily, that’s exactly what property managers exist for.
If you choose the right property management company, you’ll have a group of professionals whose goal is to limit vacancy, keeping your property rented at all times.
They understand tenant retention strategies and will make your investments as passive as possible on your behalf.
Property management companies are a dime a dozen in Texas. Be sure to do your research, interviewing various companies carefully. It might be worth it to try multiple managers for your various properties to see which one is the best to work with.
Look for Off-Market Deals
The real estate market across the country is red hot right now. Over the past few years, it hasn’t shown any sign of slowing down.
That makes it very difficult to find a good deal, especially if you’re only looking at the MLS.
If you’re hoping to cash flow on your next rental property, then stop looking at the MLS. You need strategies to find deals that aren’t on the market yet.
These can be difficult to get started, but once you build a system for finding off-market deals, you’ll get a steady stream of property opportunities coming to you all year long.
Buy Your Next Texas Property Today
Texas property is abundant. But with so many people moving in, it’s flying off the shelf quickly.
Investors need to know how to identify the best markets, how to find a good deal, and how to make the most of each and every property they own if they want to enjoy long-term success in real estate.
Looking for more investing tips and tricks? Visit our blog now to keep reading.