The Texas real estate market has been booming in the last few years. And, while the COVID-19 pandemic resulted in most industries slowing down, it had some positive effects on the Texas real estate market. So, before thinking about how to buy a foreclosed home in Texas, let’s first talk about the state of the Texas real estate market and why investing in foreclosures might be a great idea for a real estate investment venture.
Related: 7 Ways COVID-19 Has Changed Real Estate
How to Buy a Foreclosed Home in Texas – A Booming Market
Plenty of real estate investors are turning their attention towards Texas nowadays.
This is because the Texas real estate market has been growing significantly in the past few years as more and more tech giants and startups move to the state for favorable taxes.
With such companies moving to Texas, the real estate market there got reinvigorated, and several new investment opportunities have emerged.
Texas Real Estate Market Forecast
At the end of 2020, we published our forecast for the Texas real estate market 2021.
Based on previous trends, we forecasted that the value of properties in Texas will increase. While the value increase that we saw in 2020 was relatively low, considering the pandemic and the average growth across the US; however, the current growth in property values across the state is forecasted to average at 6.5% by the end of this year. By comparison, this is higher than the national average in 2020 by 0.7%.
Additionally, the Texas real estate market has a growing population of renters – with a price to rent ratio of 19, people seeking residential homes find it more affordable to rent than to buy. This means that if you’re looking on how to buy a foreclosed home in Texas in order to turn it into a rental property, you’re in luck, as there will be plenty of potential tenants and, consequently, high occupancy rates.
Best Places to Invest in Texas in 2021
Using Mashvisor’s data and analytics, we have compiled a list of the best cities to invest in Texas for both traditional as well as Airbnb rental properties.
Traditional
#1. Mesquite
- Median Property Price: $215,251
- Price per Square Foot: $129
- Price to Rent Ratio: 12
- Monthly Traditional Rental Income: $1,480
- Traditional Cash on Cash Return: 5.3%
#2. Garland
- Median Property Price: $260,529
- Price per Square Foot: $136
- Price to Rent Ratio: 14
- Monthly Traditional Rental Income: $1,516
- Traditional Cash on Cash Return: 4.4%
#3. DeSoto
- Median Property Price: $289,619
- Price per Square Foot: $116
- Price to Rent Ratio: 14
- Monthly Traditional Rental Income: $1,760
- Traditional Cash on Cash Return: 3.8%
Airbnb
#1. Mesquite
- Median Property Price: $215,251
- Price per Square Foot: $129
- Average Airbnb Daily Rate: $139
- Monthly Airbnb Rental Income: $2,498
- Airbnb Cash on Cash Return: 7.6%
- Airbnb Occupancy Rate: 59%
#2. DeSoto
- Median Property Price: $289,619
- Price per Square Foot: $116
- Average Airbnb Daily Rate: $290
- Monthly Airbnb Rental Income: $3,238
- Airbnb Cash on Cash Return: 6.8%
- Airbnb Occupancy Rate: 52%
#3. San Angelo
- Median Property Price: $336,155
- Price per Square Foot: $147
- Average Airbnb Daily Rate: $134
- Monthly Airbnb Rental Income: $4,518
- Airbnb Cash on Cash Return: 6.7%
- Airbnb Occupancy Rate: 70%
Is it a Good Investment Idea?
The reason why so many people are looking for how to buy a foreclosed home in Texas is that realistically speaking, the Texas real estate market in 2021 leans toward being a seller’s market, not a buyer’s market.
This means that property prices are relatively high, and there are plenty of potential buyers that you will be competing with when looking at listed properties for sale.
While the inventory in Texas is low, this doesn’t mean that there aren’t some great options for you to invest in – if you know where to search and have the right tools to find them.
So, how to buy a foreclosed home in Texas when the inventory is low and the competition is very high?
How to Buy a Foreclosed Home in Texas? Use This Tool
You came here hoping to learn how to buy a foreclosed home in Texas. What I have for you, however, is much more than just an answer to a question.
Traditionally, in order to buy a foreclosed home in Texas you would have to have access to a large network of real estate brokers and agents, buyers and sellers, and access to several different listing sites in order to cover a large enough portion of the state with your search.
Additionally, end before getting to the process of buying a foreclosed home in Texas, you still need to go through all the nuisance of analyzing each property for its investment opportunity and potential returns to make sure that it fits your criteria and what you’re trying to achieve.
All of this work can take A LOT of time if done manually, or A LOT of money if you hire someone to do it for you. However, today when you ask yourself how to buy a foreclosed home in Texas, you only need one answer: Mashvisor.
Mashvisor – We’ll Help You Buy a Foreclosed Home in Texas!
Mashvisor is a real estate investment platform that’s designed to help real estate investors, like yourself, find the perfect properties to invest in according to their investment strategy and search criteria.
While most real estate listing sites allow you to take a glimpse at some historic data for properties that are listed for sale on hundreds of different places – Mashvisor takes you one step further by providing you with in-market and off-market properties for sale, including foreclosures, bank-owned properties, distressed properties, and much more!
Related: How to Find Off-Market Properties for Investment in 2021
Mashvisor Property Marketplace
The Mashvisor Property Marketplace is where you will find yourself searching for properties to purchase.
Mashvisor’s marketplace doesn’t only include listings that are shared by real estate agents and realtors, but it will also include great off-market options, such as foreclosed homes, auctioned homes, short-sales, bank-owned homes, and tenant-occupied rentals.
If you’re buying a foreclosed home in Texas, then Mashvisor’s tool can easily help you find any kind of real estate property that you’re interested in, including Texas pre foreclosure listings. The tool allows you to search based on your criteria using filters for the location, projected returns, optimal rental strategy, neighborhood averages, and much more!
But wait, that’s not all!
Mashvisor’s tool will also give you suggestions based on our predictive analytics and massive amounts of data. Once you’ve entered your search criteria, we will give you a list of the top-performing properties with the highest potential for return on investment.
Investment Analysis & Comparisons
Once you’ve determined your search criteria in your market of interest, Mashvisor offers you a number of other tools that can help you invest smarter.
Our Investment Property Calculator, for example, analyzes any property that you’re interested in – this shows you the property’s price, one-time startup costs, monthly expenses, as well as the rental income, cash on cash return, cap rate, and occupancy rates that you would expect to have on the property whether you want to use it as a traditional rental property (long-term rental) or an Airbnb rental property (short-term rental).
Our estimates are based on real estate data that we obtain from big sources like MLS, Zillow, and Airbnb. This data is then used by our machine-learning algorithms to project the property’s future performance based on its past data as well as by comparing it with other similar properties in the market.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.
Property Data Deep Dive
How to buy a foreclosed home in Texas? Know every owner of every property, and eventually, you will get lucky.
Alternatively, and once you’ve completed your search on the Property Marketplace and have identified the properties that you’re interested in investing your money in, you can simply dive deep into each property’s owner data.
With access to this data, you will be able to identify off-market properties that make up great investment opportunities like a pro. Once you have access to this data, which includes the contact information of the current owner of the property, you will be able to contact them and close the deal without having to go through a third party.
This is basically How to Buy a Foreclosed Home in Texas
While finding foreclosed properties in a specific market can take a lot of time and effort when done in the traditional way, Mashvisor revolutionized the way investing in real estate is done.
Using our platform and selection of real estate investment tools, investors are able to scour through the market for the best selection of properties that they can invest in, analyze them all for their performance and projected returns, choose the top pick, contact the seller, and close the deal…all in one place!
Investing in real estate no longer requires months of preparation, making calls, traveling around, and networking just to get access to a decent number of listings to choose from. In this digital age, we have pioneered the digitization of real estate investing from A to Z, and we look forward to helping you become our next great investor.