Currently, Texas is experiencing an economic boom, making it an attractive place for in-state, out-of-state, and even foreign real estate investors.
From 2011 to 2012, five of the ten fastest-growing U.S. cities were in Texas. In 2015, more than a quarter of Texas' growth was concentrated in the state's cities. North Texas is a particular hot spot for growth.
Cities like Frisco, Denton, Flower Mound, McKinney, Plano, Grapevine and Keller are all experiencing unparalleled residential growth, mostly due to the emergency of a high-tech industry and complimentary businesses. Some cities have even expanded their borders to accommodate the new residents.
The job market is strong and growing, the cost of living is affordable, land is easy to purchase for non-residents, and the tax incentives are attractive. It's "big city living" with plenty of space. There are plenty of opportunities for smart investors looking to start or expand their portfolios.
This comprehensive guide includes everything you need to know about purchasing and owning real estate investment properties in North Texas. It covers everything from how to find the right property to meet your goals, finding and qualifying tenants and tenant management to evictions.
Browse the categories below for answers to your specific questions. If you have any questions, don't hesitate to contact us.
How to Get Started in Texas Real Estate
There is tremendous opportunity for real estate investors in North Texas. But if you're new to real estate investing, you need to make some special considerations before you get started. Use the following resources to make sure real estate investing in Texas is right for your investment portfolio.
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Buying Rental Property Property in Texas
Owning rental property is a fantastic investment. It's a steady path to wealth. All of the biggest investors (and wealthiest people) in the world invest in real estate. Buying property can be tricky, however, so it's important to be informed. These resources will help you navigate the purchasing process.
Advice from LEAP Property Management: Choosing the right property for a real estate investment is, arguably, the most important part of the process. A rental with hidden problems can turn an investment into a money pit. But a carefully chosen property can secure your retirement, expand your portfolio, and leave something behind for your kids. Before you buy, make sure you are 100% informed. It's smart to consult with a property management company before you make the purchase to get their opinion.
Real Estate Investment Concepts
It's critical to think about owning and renting real estate as a business. That means every decision you make should be objective and calculating. Use these resources to learn important investing concepts that ensures your investment stays profitable. You may know some (or all) of them, but it's useful to refresh your memory so you stay informed.
Real Estate Laws & Regulations in Texas
As you know, there are a myriad of laws and regulations that govern how investors manage their properties. It's important to abide by these rules to protect your investment. A mistreated tenant could wipe out years of earnings. The follow resources will teach you how to stay complaint with the law and run a business that treats tenants fairly. We also mention any laws that are specific to Texas.
Owning Real Estate Investment Properties
Once you've purchased and rented a real estate investment property, your work isn't finished. They require frequent management, especially if you intend to expand your portfolio with multiple properties. We always recommend using a property manager to handle the day-to-day work of owning a rental, but if you prefer to manage it yourself, these resources will help.
- How to price a rental property
- When is the right time to sell a property?
- How often should you visit your rental property?
- Prepare yourself for buying a second property
Where to Buy Real Estate to Rent
North Texas is a rapidly expanding area of the country, making it ripe for real estate investors. The weather is pleasant. The economy is booming. The population is growing quickly. It's a fantastic place for families, working professionals, and the retired.
Check out the following links to learn about some of the most popular areas in Texas to invest. You'll read why that city makes an excellent investment and how to get started. For information about other North Texas locales, use the links in our top menu bar under "About Us."
- Buying real estate investments in Frisco, TX
- Buying real estate investments in McKinney, TX
- Buying real estate investments in Plano, TX
- Buying real estate investments in Denton, TX
- Buying real estate investments in Flower Mound, TX
- Buying real estate investments in Grapevine, TX
- Buying real estate investments in Keller, TX
Maintaining Your Rental Property
In order to protect your real estate investment, you must maintain your property. Repairs will needed. Wear-and-tear will need to be corrected between tenants. The exterior will require constant upkeep. As an investor, you don't want to do the work yourself, which means you need partnerships with quality contractors in the area.
A property manager can handle all of these tasks, but it's smart to know exactly what you need and why. These resources will teach you how to maintain your property.
Advice from LEAP Property Management:
Many new real estate investors underestimate how much time one can spend maintaining a rental property. We meet a lot of would-be investors who want to do all the management and work themselves, but this is rarely feasible. It's probably not worth your time to manage everything. Most new investors are surprised to learn how affordable property management is.
Property Management in Texas
Managing a rental property is a lot of work. Most investors feel handling the day-to-day business isn't worth their time. Using a property manager is the best way to avoid the headache of managing real estate and focus on your other investments and your life.
At LEAP, we take care of everything, from pricing to marketing to finding tenants to collecting rent to sending your money right to your bank. If you're unfamiliar with how property management work, these resources will illuminate the experience.
- Do you need a property manager?
- Save money with a property manager
- What does property management cost?
- How involved do you have to be?
- Signs of a bad property manager
Real Estate Taxes and Accounting
Many of us don't like to think about money and taxes, but it's essential to have a firm grasp of both concepts if you want to be a successful real estate investor. Poor accounting practices and improper tax liability management can end up costing you money in fines and fees. It could also give you a cloudy view of your own investment, which makes earning a profit difficult. These resources will help you understand your investment's financial situation.
Advice from LEAP Property Mangement: If you're an out-of-state or foreign investor, make sure you're well-versed in United States and Texas tax law. Earning income from another state will have tax ramifications that you should discuss with your accountant or tax preparer.
Marketing Your Rental Property
No one will rent your property if they don't know about it. Marketing your rental is obviously important, but it's not easy. At any time, you could be competing with tens of thousands of potential rental properties. If you want to keep tenants in your unit at all times, you've got to be a savvy marketer. If you use a property manager like LEAP, much of marketing is taken care of for you, but there are still some important things you need to know.
Managing Rental Tenants
Managing your tenants is the most stressful and time-consuming part of owning real estate investment property. Finding and screening quality tenants is especially important. A good tenant can mean years of positive cash flow and a well maintained property. A bad tenant can actually cost you money in court fees, lost rent, and damage.
For both reasons, it's absolutely critical that you understand how to work with your tenants to create a positive experience for everyone. We specialize in tenant management at LEAP, so we've put together some resources to help you, but also to show you how effective we can be.
- Screening and qualifying tenants
- How to evict a tenant
- Reducing tenant turnover
- Dealing with tenant abandonment
- Tenants who fail to pay rent
- Signs of a bad tenant
- Tenant turnover problems
- Should you allow tenants to keep pets?
- Stop tenants from damaging property
- Your tenants need renter's insurance
- The worst types of tenants
- Keeping good tenants happy
Real Estate Eviction Process
At LEAP, we do everything we can to screen tenants properly so eviction is never a concern. Unfortunately, however, eviction is sometimes necessary. The process can be stressful and time-consuming. Following the law is absolutely paramount. Eviction is a serious part of real estate investing, so you need to be prepared.
Advice from LEAP Property Management: Eviction can be stressful, which is why it's important to use a property manager that acts as a buffer between you and the tenant. This allows you to make purely business-minded decisions without the intense emotions that often accompany a tenant-landlord relationship.
Upgrading and Improving Your Rental Property
Naturally, it's smart to improve the value of your investment wherever you can. Real estate properties are no exception. If you can raise the value of your rental, attract more tenants, demand higher rent, and improve your cash flow. There are countless ways to upgrade your rental. You don't have to spend a lot of money (but you certainly could). These resources will help you improve your property.
Real Estate Investing Lifestyle
What's it like being a real estate investor? How does it change your life? Where do you meet other investors to gain interesting perspectives? Where can you learn more information to keep yourself informed? We hear these questions all of the time, so we compiled some resources to answer common questions about the lifestyle of real estate investors in Texas.