BRRRR in Texas

• Local codes & permits: Rehab timelines and requirements vary by city/county; confirm inspections early.
• Property taxes & insurance: Reassessments and rate shifts can impact DSCR; underwrite conservatively.
• Landlord‑tenant rules: Screening, deposits, notices, and eviction processes differ by jurisdiction.
• Contractor capacity: Validate bids, scope, and change order terms; keep tight draw schedules.
• Refi criteria: Seasoning, LTV, DSCR, and appraisal standards influence your timeline and proceeds.

Regulatory Landscape

• Landlord-friendly eviction laws with typical 3-day notice for non-payment, though processes vary by county and municipality.
• No statewide rent control; cities generally prohibited from implementing rent stabilization ordinances.
• Security deposits capped at 2 months' rent for unfurnished properties, with specific return timeframes.
• Strong property rights protections and homestead exemptions provide investor-favorable legal framework.
• Building permits vary by city; major metros have streamlined processes for standard rehab work.
• Lead paint disclosure required for pre-1978 properties; asbestos regulations apply to major renovations.
• Short-term rental regulations increasingly city-specific; verify local STR licensing requirements.

Financing Tips

• Model exit scenarios if ARV or rent land below target.
• Carry reserves for overruns and refinance delays.
• Lock rates strategically; track market movements.
• Document rehab thoroughly to support appraisal value.

Speak with Jake N Finance Group to size leverage and timeline.

Financing Benchmarks

• Target DSCR ≥ 1.25–1.35x given Texas's stable rental markets and growth potential.
• Purchase LTV typically 75–85% for experienced investors in primary metros.
• Refi LTV commonly 70–80% subject to ARV appraisal and market conditions.
• Seasoning requirements 6–12 months; some lenders offer 3-month programs for seasoned investors.
• Carry 12–18% rehab contingency due to recent material and labor cost volatility.
• Maintain 8–12 months reserves; Texas markets can absorb rate fluctuations well.
• Cash-out refinance proceeds often 75–85% of ARV depending on market and property type.