Buying Rental Property in Texas as a Foreigner: What You Need to Know

Texas has become one of the most sought-after states for international buyers, and it’s not hard to see why. With rapid population growth, a pro-business environment, and no state income tax, Texas offers foreign nationals both affordability and opportunity. 

What was once a barrier for foreigners no longer stands in the way.With investor-friendly loans and a fully digital platform, foreign nationals can access financing and close remotely with Waltz. This streamlined approach makes it simple and efficient to start or grow a rental property portfolio in Texas.

Key takeaways

• Texas combines strong population growth, affordability, and a no-income-tax policy to attract foreign real estate investors.
  
  
• Major metros and emerging cities from Houston to San Antonio offer diverse rental opportunities.
  
  
• Waltz enables foreign nationals to finance Texas investment property with investor-friendly DSCR loans, remote closings, and more.

Why people invest in Texas

Texas continues to stand out as one of the fastest-growing, most business-friendly states in the U.S. Its combination of economic strength, affordability, and favorable tax policy makes it especially attractive for international investors.

Job creation

Global companies like Apple, Tesla, and SpaceX have relocated or expanded operations in Texas, drawn by its business-friendly environment, low taxes, and pro-growth policies. The influx of these companies fuels job creation across tech, aerospace, energy, and healthcare, attracting a growing workforce and boosting housing demand. For investors, this economic expansion translates into stronger rental markets, making Texas an attractive state for real estate investment.

Population growth

Population growth is in part a byproduct of employment opportunities. It has also consistently ranked highly in the U-Haul Growth States Report, which tracks migration trends and highlights the states and cities attracting the most new residents each year, providing a valuable indicator of rising housing demand. Texas metros have some of the strongest rental dynamics in the country, attracting both local and international investors:

• Austin: Known for its booming tech industry, Austin draws skilled workers and young professionals, driving strong rental demand. The city’s vibrant cultural scene—including live music, arts, and food—makes it attractive for families and newcomers, offering a wide range of residential investment opportunities.
  
  
• Dallas: Dallas combines rapid population growth with a diversified economy in tech, finance, and healthcare. Its central location and infrastructure make it a hub for business and commuting. Compared to Austin, Dallas offers more affordable housing, creating opportunities for investors seeking cost-effective entry points.
  
  
• Fort Worth: Part of the larger Dallas-Fort Worth metroplex, Fort Worth blends economic growth in healthcare, manufacturing, and energy with rich cultural heritage, including the famous Stockyards. The city offers a balance of modern amenities and Western charm, attracting residents seeking both lifestyle and opportunity.
  
  
• Houston: Houston is one of the largest U.S. cities, with a strong economy in energy, healthcare, and manufacturing. Its lack of zoning laws provides developers with flexibility, and high rental demand makes it a compelling market for property investors.
  
  
• San Antonio: With a rapidly growing population and affordable housing, San Antonio appeals to both families and renters. The city’s strong military, tourism, and healthcare sectors create stable rental demand and long-term investment potential.

Housing affordability

Compared to coastal states like California and New York, Texas offers far more accessible entry points for buyers. Median property prices are significantly lower, which appeals to foreign investors seeking both value and portfolio diversification.

Who’s investing in Texas

Foreign buyers play a significant role in Texas real estate. According to the National Association of Realtors, the state ranked as the third-largest destination for international purchases in 2024-2025, accounting for about 10% of all U.S. foreign buyer transactions.

Mexican buyers are the largest group of foreign investors in Texas, drawn by proximity, cultural ties, and strong cross-border connections. Beyond Mexico, investors from around the world are attracted to Texas for its cash-flow opportunities, economic growth, and business-friendly environment, making the state a top destination for international real estate purchases.

Case study: Canadian investor buys Texas duplex

Linna had years of experience in Canadian real estate and wanted to expand into the U.S. She identified strong rental and growth opportunities in Brownsville, Texas, and purchased a duplex with multiple income streams. Texas’s affordable housing, growing economy, and landlord-friendly policies made it an ideal market for her buy-and-hold strategy. Her story shows how international investors can tap into Texas real estate and build cash-flowing portfolios from abroad.

Understanding investor motivations

Foreign nationals aren’t just buying in Texas for affordability; they’re also motivated by broader financial and lifestyle factors that make U.S. property ownership appealing.

Hedge against inflation and currency volatility

Owning real estate in U.S. dollars allows international investors to protect and stabilize wealth when home-country currencies face inflation or devaluation. Texas real estate offers the opportunity to anchor assets in a strong currency while generating rental income. For investors from Latin America and other regions, it provides a way to move capital out of volatile markets and into properties that can preserve and potentially grow generational wealth over time.

Access to fixed-rate mortgages

Many foreign investors are accustomed to variable-rate mortgages in their home countries. With fixed mortgage options in the U.S., payments remain predictable over time, offering peace of mind and long-term planning confidence.

Potential tax benefits

Texas offers a major advantage for investors with no state income tax, helping to maximize returns. In addition, U.S. real estate provides favorable rules for property investors, including potential deductions for mortgage interest, property taxes, and other expenses. While tax regulations can be complex, working with a qualified tax professional ensures that foreign investors understand the rules and can take full advantage of available benefits, making informed decisions that support your strategy.

Why Texas works for foreign nationals (with Waltz)

While Texas offers affordability and demand, financing is often the biggest barrier for international buyers. Traditional U.S. banks require credit scores, income verification, and in-person closings, hurdles that leave many foreign nationals feeling like they need to pay in cash. Waltz removes those barriers with a model built for international investors.

Turn rental income into financing opportunities

When evaluating Texas real estate, the key question for investors is simple: Does the property cash flow? Property-based loans, such as DSCR loans, focus on the income potential of the property itself rather than personal income or U.S. credit history. Approval depends on whether rental revenue can cover all expenses.

How it’s calculated:

Total Monthly Debt Service includes mortgage principal and interest, property taxes, insurance, and any HOA fees. A DSCR of 1.0 or higher indicates that rental income can fully cover costs, making the property a strong candidate for financing. This method is particularly beneficial for international buyers looking to invest in Texas from abroad.

Financing options built for flexibility

Texas real estate financing can be customized to suit different investment strategies. Highlights include:

• Purchase or refinance: Finance new acquisitions or refinance existing U.S. properties to grow your portfolio or unlock equity.
  
  
• Up to 70% LTV: Borrow up to 70% of the property’s value, reducing upfront cash requirements.
  
  
• No U.S. credit check needed: Eligibility is based on property income potential, not personal credit or income verification.
  
  
• Loan size flexibility: Individual loans range from $100,000 to $1 million, with no limit on the number of loans.
  
  
• Diverse property types: Single-family homes, condos, townhouses, and 2–4 unit multi-family buildings can all qualify, whether for short-term or long-term rentals.

Invest from anywhere with confidence

Purchasing Texas property from outside the U.S. can be done entirely online. A centralized digital platform manages documents, approvals, and communication, helping investors close deals faster without needing to travel. All steps of the process—from applying for a loan to managing the property—can be coordinated remotely. For added convenience, a comprehensive Investor Kit bundles essential services into one package:

• Texas LLC setup: Protect your personal assets and create a U.S.-recognized business entity.
  
  
• EIN issuance: Automatically receive an Employer Identification Number for banking, financing, and tax purposes.
  
  
• U.S. business bank account through Regent Bank²: Collect rent, pay expenses, and manage cash flow without visiting the U.S.
  
  
• Integrated currency tools³: Transfer money internationally, convert currency securely, and minimize hidden fees.

This all-in-one solution streamlines both purchasing and ongoing management, making Texas rental investments accessible and manageable for international investors, no matter where they are in the world. Start your Texas property search with financing designed for foreign investors. Get started with Waltz