The Lone Star State is one of the hottest commercial and residential real estate markets in the US in 2023. Texas offers several lucrative benefits for investors, from lower costs to friendly taxes, vast and varied landscapes, and relatively lower living costs than most states. However, before buying an investment property in Texas, you must learn about the state’s essential requirements to ensure a seamless process and high returns on investment.

In this post, we’ll share five things to do before buying an investment property. So, keep reading and plan accordingly.

5 Things to Do Before Buying a Commercial or Residential Property in Texas

1. Extensive Market Research

Any real estate purchase journey begins with thorough market research. Texas is a huge state with multiple counties, cities, and rural areas. So, whether you’re looking to purchase an apartment building, retail space, or warehouse, you must opt for high-growth areas or those with great potential for appreciation. Finalize your preferred property type and start searching online for options in your preferred location. You should also speak to other investors or realtors to learn more about the local market.

2. Financial Preparedness

You must build a solid financial foundation before investing in any property. For instance, if you’re looking to buy a rental property like a house or apartment, ensure you have a good credit score and down payment to secure a mortgage. You can opt for cash if you like, depending on your wealth and liquid assets. Commercial properties, in contrast, often require a large upfront investment, especially in major cities or high-value suburbs. So, you must plan accordingly and have enough for initial, closing, and ongoing expenses – down payment, closing fee, insurance, maintenance, etc.

3. Legal Considerations

Like every state, Texas has unique property and real estate laws, which you must learn about proactively. For instance, if you’re buying an apartment or house for rental income, you must learn about lease agreements and tenant laws. Similarly, if you’re buying self-storage units, warehouses, or retail outlets, you must learn about building codes, permits, licenses, and zoning regulations.

4. Location Selection

Location plays a crucial role in investment property selection. For example, if you’re considering an apartment or condo, you want it close to urban centers. Most professionals, college students, and individuals prefer living in centralized locations. Similarly, if you’re considering buying a house, choose one close to schools, essential amenities, and transportation facilities. Furthermore, commercial properties like shops and stores should be strategically located to attract tenants and customers.

5. Professional Guidance

Regardless of your investing experience, you still need local expertise to simplify and accelerate your property hunt and transactions. Ideally, you should work with a real estate company or investment firm to help with every step, from finding suitable options to negotiations and paperwork. You should also consult a lawyer, financial advisor, and property inspectors before finalizing your decision.

Wrapping Up

Texas remains one of the most lucrative hotspots for real estate investments in 2023. However, you must prepare proactively to take full advantage of investment opportunities. Take your time to research options in different cities, towns, and development areas to maximize potential income and ensure long-term appreciation.

For more insights on commercial and residential real estate investing, visit CHRE. You can also explore our vast options of investment properties in the Rio Grande Valley.