Real estate investors are always looking for investment opportunities that involve minimum risks and offer maximum returns. The Lone Star State of Texas has long been deemed a lucrative market for real estate investors. Here are some of the many reasons Texas can be the ideal state for rental property investment.
1. Convenience for Landlords
The laws in the state of Texas are landlord-friendly and offer landlords greater rights than most other states. In markets where rental property is in high demand, evictions and other unfortunate incidents are very common. Landlords do not have to fight legal battles to exercise their ownership rights in Texas. A landlord in Texas is unlikely to lose rental income or pay heavily in legal fees, which makes the state a “Landlords’ Haven.”
2. Growing Population
Population growth in any state results directly in high demand for rental property. Being the second most populous state in the country, Texas’ rental home industry has been booming. As many more move to the state from around the country, investing in rental property becomes a smart choice for any real estate investor. With the help of hard money loans or asset-based lending, investing in real estate has been made easy in Fort Worth, Dallas, San Antonio, Houston, and many other cities of Texas.
3. The State’s Booming Economy
The thriving economy of Texas is reflected in the ever-increasing demand for rental property across the state. Being home to multiple Fortune 500 companies, colleges, and a growing healthcare sector makes the state economically fortuitous. The rising employment rate due to the healthy economy offers promising returns on rental properties throughout Texas.
4. State Income Tax Exemption
Investors of rental property in Texas are not liable to pay state income tax. This ends up increasing the return on investment for most property owners as well as maximizing the savings. Asset-based lenders in Texas are also likely to make a fortune on their investments due to the same reason.
5. Lower Property Costs
Despite the growing property demand, the costs of building and purchasing property in Texas are much lower compared to other major states. With the help of Global Capital Partners, asset-based lending and bridge financing have been made convenient and affordable for many potential investors in Texas. This has provided investors with various convenient investment options using short-term loans.