If you’re a property investor looking to add more assets to an already lucrative portfolio, you might be thinking about what state is worth checking out. Often, real estate investors would look to emerging markets defined by healthy population and income growth as well as landlord-friendly regulations. Texas has to be a major market you should get into if you’re looking to grow your real estate portfolio.
Over the past years, the Lone Star State has seen steady increases in rental income as more people, particularly those from the East Coast, are choosing to settle down in cities like Dallas and Austin. This doesn’t come as a surprise knowing that the state, along with North Carolina and Florida, has fared well in terms of livability and affordability.
Don’t let these fundamentals keep you from seeing the bigger picture. You’d still face considerable challenges as you shop around for new assets to add to your portfolio. With this in mind, here are a few tips to help you purchase Texan real estate that will fuel your investment goals:
1. Conduct thorough market research
The first thing you will need to do is identify areas offering the best opportunities. Steer clear of already saturated local markets and look up cities and metropolitan areas that balance out positive economic fundamentals with manageable competition. It takes vigilance to know if an area offers a sweet spot that only a few investors (including you) come across.
You wouldn’t want to buy properties in places where median prices are higher than the state average. You may want to risk the extra expense if forecasts show positive rent growth. It’s all a matter of analyzing current trends and gathering valuable information from the right people.
2. Get eyes and ears on the ground
If you’re new to the Texas real estate market, there’s only so much information you can get from online news sites. You need context and insight coming from people who are already on the ground.
With this, build a solid network by reaching out to fellow investors who already bought assets in the state. You can also reach out to local real estate brokers and agents who may recommend apartments or homes for sale in Texas Other than that, you may want to engage with local chambers of commerce where you can connect with contractors, city officials, and other key people.
3. Review local and state laws
Being friends with Texan business owners doesn’t give you a free pass for adding new assets to your real estate portfolio. You need to make sure your acquisition follows pertinent regulations, from closing the deal up to filling up the property with tenants.
You can avoid committing fatal violations if you can review regulations covering fair housing and rent control. To be on the safe side, always consult with a local Texas real estate attorney who can conduct title searches, deal with tenant disputes, and a wide range of legal services.
4. Get a good property manager
Even in a market that scores high in rent growth and livability, you still have to make sure your investment properties in Texas are generating consistent cash flow. You need a reputable property management company to help market vacancies, deal with tenant problems, and ensure compliance with state and federal laws.
When searching for the right property management service, consider one that has experience in the type of assets you have in your portfolio so you can avoid a mismatch. It’s possible that you would hire a property manager for a vacation rental when they only have experience in handling apartment buildings. The dynamics are different so always consider a property manager’s experience in the type of properties you have in your portfolio.
Endnote
Now is always a good time to invest in Texan property. Be sure you follow these tips so you can make the most out of your Lone Star assets!
