The 10 percent cap does not apply to your rental
This is the Austin-specific squeeze. A Texas residence homestead has its annual appraised value increase capped at 10 percent. A rental does not. So as Travis County values climbed through the growth years, investment property absorbed the full increase every year while owner-occupied houses next door were protected.
For a long-held rental, that compounding is often what broke the arithmetic — the tax line outran the rent. And unlike a repair, it is not something you can fix by spending money.
Permitting is the other half of it
City of Austin review timelines, protected-tree rules, impervious cover limits, and in some watersheds additional ordinances all add time and cost to a renovation. Landlords routinely start a project, discover what the permitting path actually involves, and stop.
That produces a recognisable property: a rental with the work half done, a permit open or never pulled, and a unit that cannot be leased or financed in its current state. We buy those. Unfinished work does not have to be completed, permitted, or inspected before closing.
Sell occupied, vacant, or mid-project
- Occupied with a paying tenant, mid-lease or month-to-month
- Occupied with a tenant in arrears or an eviction filed
- Vacant and stripped between tenants
- Half-renovated, with the work stopped on money or permits
- Duplexes and older small multifamily in east Austin and near campus
- Student rentals near UT, occupied or vacant
- Several properties closed together
- Houses that flooded along Onion, Williamson, or Shoal creeks
What we look at
Condition and location drive the number, but the lease matters too: rent against market, term and renewal dates, payment history, deposit accounting, and whether the tenancy is subsidised. In Texas the lease and the deposit both transfer at closing, so an occupied sale needs no eviction and no vacancy.
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.
Before you sign anything
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 budgeted only for capital gains.
If a 1031 exchange is part of the plan, the qualified intermediary has to be in place before closing, not arranged afterwards. That is a CPA conversation, and it is cheaper to have it first.
Frequently asked questions
Can I sell an Austin rental with a tenant in place?
Yes. The lease and the security deposit transfer to the buyer at closing and the tenancy continues.
Why has my Austin rental tax bill risen so much faster than my neighbour's?
Because the 10 percent cap on annual appraised value increases applies to a residence homestead, not to a rental.
My renovation stalled waiting on permits. Will you still buy?
Yes. Unfinished work does not have to be completed, permitted, or inspected before closing.
Do I have to do a make-ready first?
No. We buy mid-turnover, stripped, or fully occupied.
Can I sell several Austin rentals at once?
Yes. A single closing across multiple addresses is common.
Will I owe tax on the sale?
No Texas state income tax, but federal capital gains and depreciation recapture apply. Ask a CPA, especially if a 1031 exchange is in play.