DSCR loan Texas

Texas county appraisal districts value property as of January 1 each year. If I am reviewing a purchase, I ask the client to look at the parcel record rather than carry over a listing estimate. Texas property tax appraisal basics.

An owner can protest an appraisal to the appraisal review board, usually by May 15 or within 30 days after the notice is mailed, whichever is later. A further challenge can reach district court or, in some cases, arbitration. Texas property tax protest process.

A rental does not qualify for the main home homestead exemption or its yearly appraisal cap. As of 2026, qualifying non homestead property under the value ceiling can have a 20% yearly cap on appraisal increases. That rule is scheduled to end after 2026 unless the Legislature extends it. I would not assume the current owner’s tax bill will stay the same after a sale. Texas appraisal limits and scheduled expiration.

Texas landlords must return a deposit or itemize deductions within 30 days after a tenant leaves, but the clock does not start until the tenant provides a written forwarding address. Normal wear and tear is not a deduction. Bad faith withholding can cost three times the amount withheld. I ask a buyer taking over tenants to read the lease and deposit records. Texas security deposit refund guidance.

Eviction begins with a written notice to vacate. The default is three days unless the lease sets another period. Only after the notice period can a suit be filed in justice court. That is a landlord responsibility, not a projected rental income assumption. Texas eviction process guidance.

Austin requires a city license for short term rentals, limits how many one operator can run in residential zones, and requires platforms to display license numbers. I ask clients to confirm current city rules for the address before buying. I also check what rental evidence the program accepts. Austin short term rental rules.

Texas does not impose individual income tax. An investor choosing an LLC forms it with a certificate of formation at the Secretary of State. An LLC also files a franchise tax public information report with the Comptroller each year by May 15, even if no tax is owed. Clients should confirm their own tax situation with a CPA. Texas franchise tax reporting guidance.

Texas regulates title insurance premiums, so the premium is the same at every title company. Escrow and other closing fees can differ. I would compare the full closing costs, not just the title premium. Texas title insurance questions.

I compare a Texas lease with the county appraisal record and an insurance quote before looking at the full housing expense. I do not use a seller’s homestead treatment to estimate an investor’s tax position.

For a proposed Austin visitor rental I separate permission to operate from acceptable income records. Clients choosing an entity should review tax reporting with a CPA before deciding how to take title.