Rental and investment property
Buying Investment Property in Austin, Georgetown and Round Rock
A good rental starts with clear numbers and local knowledge. We help you compare properties on rent, taxes, rules and long term costs, not just the purchase price.
The right rental is the one whose numbers work
In Texas, property taxes and insurance often have a large effect on a rental’s monthly costs, and rentals do not receive the homestead exemption that owner occupied homes do. HOA rules and city regulations can also limit how a home is rented. We help you check these early so you can compare properties with realistic numbers.
Long term rentals
We compare likely rent, tenant demand, condition and ongoing costs, and help you look for homes that are easy to maintain and lease.
Short term rentals
Austin and some other cities regulate short term rentals, and many HOAs restrict them. Rules should be confirmed before you rely on that income.
Small multifamily
Duplexes and small multiunit properties can offer more than one income stream. Financing and inspection needs are a little different.
The Thence House approach
Buying a rental step by step
1. Set your goals
Monthly cash flow, long term appreciation, a future home for family, or a mix. Your goals shape where and what to buy.
2. Line up financing
Investment loans often have different terms than primary home loans. We keep a short list of respected local lenders and will introduce you on request. The choice is always yours.
3. Compare the numbers
For each property we look at likely rent, taxes, insurance, HOA dues, repairs and vacancy so you can compare options clearly.
4. Check the rules
We help you review HOA documents and point you to current city rules on rentals before you make an offer.
5. Inspect carefully
Roof, foundation, plumbing and HVAC condition matter even more when someone else lives in the home.
6. Close and lease
After closing, we can share names of local property managers. You choose who to hire.
Know the costs
What changes when a home is a rental
A rental is taxed without a homestead exemption, so its tax bill is often higher than a similar owner occupied home. Landlord insurance replaces a standard homeowners policy. Many HOAs set rules on leasing, and some limit or prohibit short term rentals. Including all of these in your numbers gives a truer picture of the investment.
This is general information, not investment, tax or legal advice. Rents, tax rates, insurance costs and local rules change. Buyers should verify figures for each specific property and consult a tax professional, lender or attorney as needed. Thence House Group does not guarantee rental income or returns.
Questions to ask about any rental
- What do similar homes nearby rent for today?
- What is the combined tax rate, including any MUD?
- Does the HOA allow leasing, and are there minimum lease terms?
- Are short term rentals allowed by the city and the HOA?
- What will landlord insurance cost?
- What major systems may need replacement soon?
- Will you self manage or hire a property manager?
Explore the area
City and neighborhood guides
Our guides cover home styles, price points and what is nearby. Buyers should verify current listings, rents and costs before making a decision.
The team behind the guidance
Who you will work with
Thence House Group is sisters Ursula Whitworth and Caroline Kissel, brokered by Kuper Sotheby’s International Realty. Both have called Austin home since the 1970s. Ursula lives in Georgetown and knows the northern communities closely, with extensive experience in residential and new home sales. Caroline was born and raised in Austin and brings extensive project management experience to every transaction. They handle every transaction together.
Investment property questions
How much down payment do you need for an investment property?
Investment property loans usually require a larger down payment than a primary home, often 15 to 25 percent or more, depending on the lender, the loan program and the number of units. A lender can confirm current requirements.
Can I get a homestead exemption on a rental property in Texas?
No. The Texas residence homestead exemption applies only to the home you own and live in as your principal residence. A rental property is taxed on its full appraised value, less any exemptions it otherwise qualifies for.
How do you calculate cap rate?
Cap rate is the property’s annual net operating income divided by its purchase price or value. Net operating income is rent minus operating costs such as taxes, insurance, repairs, management and vacancy, before mortgage payments.
Do I need a license for a short term rental in Austin?
The City of Austin regulates short term rentals and requires them to be licensed, and its rules have changed over time. Other cities have their own rules, and many HOAs restrict short term rentals. Buyers should confirm current requirements with the city and the HOA before buying.
Can I rent out a home in an HOA neighborhood?
Usually, but it depends on the HOA’s governing documents, which may set leasing rules such as minimum lease terms or limits on short term rentals. Buyers should review the documents before making an offer.
Keep exploring
Related guides
Looking for your next rental?
Tell us your budget, goals and preferred areas. We will help you compare properties with realistic numbers.
Buyer Questionnaire
Contact Us
Or call 737-403-5262 · hello@thencehouse.com
Thence House Group is Ursula Whitworth and Caroline Kissel, brokered by Kuper Sotheby’s International Realty.