Why the math changed

Texas property taxes follow appraisal district values, and a non-homestead rental has no 10 percent cap on increases the way an owner-occupied homestead does. Insurance has risen across the state, sharply on the Gulf Coast and in hail-prone North Texas. Then there is the make-ready: flooring, paint, appliances, an HVAC system at the end of its life.

For an owner who wanted passive income and got a second job, the decision often is not about the market at all. It is about not spending another $20,000 to re-lease a house.

Sell occupied, vacant, or mid-turnover

  • Occupied with a paying tenant, mid-lease or month-to-month
  • Occupied with a tenant in arrears, or with an eviction filed
  • Vacant and stripped between tenants
  • Half-renovated, with the work stopped
  • Multiple houses in one closing
  • Duplexes, triplexes, fourplexes, and small multifamily buildings

What we look at on a rental

Condition and location drive the number, but the lease matters too. We look at the rent against the market, the term and renewal dates, the payment history, the deposit accounting, and whether the tenancy is subsidized. A long tenant paying reliably under market is a different situation from a month-to-month tenant six weeks behind.

Accurate information helps you. A rent roll that turns out to be optimistic is the most common reason a rental purchase gets renegotiated late, and we would rather price the real situation from the start.

Taxes on the sale

Texas has no state income tax, so there is no state capital gains tax on the sale. Federal rules still apply, including depreciation recapture on a rental, which surprises owners who only budgeted for capital gains. If you are considering a 1031 exchange, the identification and closing deadlines are strict and the exchange has to be set up before closing, not after.

This is a CPA conversation, not ours — but it is worth having before you sign anything, because the sequence matters.

Frequently asked questions

Can I sell a Texas rental with a tenant in place?

Yes. The lease and the deposit transfer to the buyer at closing and the tenancy continues.

Do I have to make repairs or a make-ready before selling?

No. We buy rentals in current condition, including mid-turnover and stripped units.

Can I sell several rentals at once?

Yes. A single closing across multiple addresses is common and usually simpler for both sides.

Will you buy a rental where the tenant is not paying?

Yes. Share the ledger and the status of any notice or eviction case so the offer reflects the actual situation.

Is there state capital gains tax in Texas?

No. Texas has no state income tax. Federal capital gains and depreciation recapture still apply, so talk with a CPA.

This page is general information about selling property in Texas, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Texas professional about yours.