How to Find the Right Owner-Occupied Investment Property in Texas
Buying an owner-occupied investment property here in Texas can be one of the smartest moves you make toward building wealth and passive income. You get a place to live and a property that generates rental income — a win-win for growing your real estate portfolio.
So how do you choose the right one? Let’s break down your options and what to consider before you buy.
1. Start by Deciding What Type of Property Fits You Best
Single-Family Home
A traditional single-family home can be a great starter investment. You live in one part of the house and rent out the extra bedrooms. It’s perfect for individuals or couples who don’t mind sharing space. Since you’re living onsite, you’ll naturally take better care of the home — but make sure your roommates feel comfortable too. After all, happy tenants pay on time and treat the home with respect.
Multi-Family Property (Up to 4 Units)
If you’re serious about investing, consider a duplex, triplex, or fourplex. These properties allow you to live in one unit and rent out the others — a common strategy among first-time investors. The big advantage? You can often qualify for an FHA loan with a low down payment as long as the property has four units or fewer.
Apartment Building (5 Units or More)
Once you go beyond four units, the property becomes commercial real estate. That means different lending requirements and a bigger commitment — but also a bigger potential payoff. Living onsite can make management easier, but it also means your “day off” might never truly be a day off. Make sure you’re ready for the added responsibility before taking this step.
2. Ask Yourself These Key Questions
How much privacy do I really need?
If you value quiet and personal space, a single-family home with roommates might be tough. But if you can handle less privacy for a year or two, multi-unit living can be a fast track to financial freedom.
How much space do I require?
Downsizing might be part of the plan. If you’ve got a lot of stuff, you may need to declutter before moving into a smaller unit or shared home.
How long am I comfortable with this setup?
Most lenders require you to live in your owner-occupied property for at least 12 months. Ask yourself if that feels realistic — or if you could see yourself extending it once you realize how much the property earns for you.
What do the numbers look like?
Run the math before buying. If the rent you collect covers your mortgage, taxes, and expenses — and you get to live for little or nothing — you’re in a great spot. Many investors start this way and build equity fast.
Am I prepared to be the landlord 24/7?
Being nearby means tenants (or roommates) might come knocking with every little issue. It’s convenient for them — but can be tiring for you. Consider how hands-on you want to be before committing to a property that keeps you too close for comfort.
3. Pro Tip: Plan for Your Tenants Before You Buy
Think ahead about who you’d like to rent to. If possible, line up friends, coworkers, or trusted tenants early. This helps you avoid being stuck with unreliable renters — and ensures your mortgage is covered from day one.
Final Thoughts
An owner-occupied investment property in Texas can be a smart way to start or grow your real estate portfolio. You’ll build equity, enjoy potential tax benefits, and let tenants help pay your mortgage while you live on-site.
If you’re thinking about buying or selling an investment property in Texas and want local, no-nonsense guidance, reach out to Sell My House Fast TX today. We know the Texas market, and we’re here to help you make your next move a profitable one.