If you are looking for somewhere to invest in, there are numerous options in Texas. It has a growing population and a booming economy, which is expected to continue increasing after the pandemic is over. We’ve rounded up 12 of the best places in Texas to buy rental property. But first, we’ll dive into what to look for in a rental property:
There are a couple of things to be on the lookout for when it comes to buying property with the intent to rent. You want the city the property is in to have a strong and diverse economy, a large rent-to-ownership ratio, landlord-friendly laws, a high cap rate, and a school or college nearby. It’s also important to make sure that you have easy access to funding. Try looking for hard money lenders Texas to help get your finances in order and start investing right away.
Ft. Worth
Ft. Worth has a quickly growing population, a median home price of $255,000, and is surrounded by many colleges, including Texas Christian University and Texas Wesleyan University.
Garland
Garland has a strong population and is experiencing a job boom. Plus, housing is affordable with a median price of $219,999.
Arlington
Arlington has a diverse economy and a generous amount of tourists. Short-term vacation rentals are not out of the question in this city. Home values also increased by 9% this year.
Odessa
Odessa is an interesting place for rentals. It’s an oil and gas boomtown, so housing values have gone up by 18% in just one year. It may be more prudent to treat Odessa as a getaway rental type of location.
Seguin
Seguin is a great place to invest in because it’s close to many major cities. For example, it’s only 30 minutes from San Antonio and 45 minutes away from Austin. Moreover, the rent is cheaper here than in some other locations on the list.
Sugar Land
Sugar Land is a suburb of Houston, and it is one of the more pricey locations in the state with a median home value of $305,900. Rental income is almost $2,000, which is much higher than the national average. It’s got a strong economy and many Fortune 500 companies are based here.
Bishop
Bishop, Texas is a small town with a very cheap median home price of only $105,150. However, it has a cap rate of 5.3%, making it the highest in the state.
Olney
Olney is a small farming town in the northern part of Texas. It is a relatively small and affordable town, but it has a cap rate of 5.1%
Breckenridge
Breckenridge is a small Texan town with a median property cost of $178,387. However, it is a good town to rent in as it has a good education system and Texas State Technical College is located nearby.
Shenandoah
Shenandoah, Texas is a small but relatively wealthy suburb of Houston. It has a nice price-to-rent ratio of 11.
Round Rock
Round Rock is a suburb of Austin. It has a relatively high monthly rental income of $1,654 and a breakeven point of 3 years. The town has a strong economy and is next to big companies like Dell, Emerson, and Samsung.
New Braunfels
New Braunfels is a small suburb located north of San Antonio. It is a great place to invest in because it has seen massive population growth in the last 10 years. In fact, the population almost doubled in size from 50,000 people to 92,000. Plus, it has a rental income of $1,553 a month and is the home of the first water park, Schlitterbahn.
These are just some of the many, many investment opportunities that Texas real estate has to offer. There is almost no wrong choice when choosing to invest in a Texan town, as most cities are seeing huge amounts of growth, while housing prices have stayed relatively low. You could pick any one of the towns or cities and make your money back quickly.
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