How to Buy Investment Property in El Paso TX in 2024

How to Buy Investment Property in El Paso TX in 2024

January 25, 2024

If you’re contemplating real estate investment opportunities in the Lone Star State, El Paso stands out as a city with a unique charm, a growing population, and promising economic prospects. With strategic location, affordability, and a diverse market, El Paso presents an intriguing landscape for investors seeking both stability and potential returns.

El Paso, situated on the western tip of Texas along the U.S.-Mexico border, has experienced notable growth in recent years. As the sixth-largest city in Texas, El Paso boasts a population of over 680,000 residents, making it a significant player in the state’s real estate market.

In this guide, we will look into:

  • Important El Paso, Tx real estate investment market trends for 2024.

  • Hot neighborhoods and towns to look for investment opportunities.

  • Tips for finding and financing an investment property in El Paso.

Why invest in El Paso real estate?

In the latest demographic trends, El Paso has shown consistent population growth, fueled by factors such as a lower cost of living and a strong job market. This growth contributes to a demand for housing, creating opportunities for real estate investors looking to capitalize on the city’s upward trajectory.

 

The affordability of real estate in El Paso is a key draw for both residents and investors. The median home value in the city is notably lower than the national average, making it an attractive option for those seeking affordable housing options. This affordability factor, coupled with a diverse range of housing types, positions El Paso as a market with potential for both long-term growth and rental income.

El Paso real estate market trends

In recent years, El Paso’s real estate market has demonstrated resilience and stability. Home sales have seen consistent growth, reflecting the city’s appeal to homebuyers and renters alike. With a median home value of approximately $248,250 (according to Redfin’s December 2023 update) and an average rental income of $1,525 (via Zumper), El Paso offers an accessible market for investors with varying budgets.

The city’s strategic location on the U.S.-Mexico border contributes to its economic vitality. Trade and commerce play a significant role in El Paso’s economy, creating a stable job market and fostering economic growth. As a result, the real estate market benefits from a diverse pool of potential tenants and buyers.

Hot neighborhoods for El Paso investment properties

Westside

Known for its scenic views and family-friendly atmosphere, the Westside of El Paso offers a mix of residential properties. With a variety of schools, parks, and amenities, this area appeals to families and individuals alike.

Downtown El Paso

Experiencing revitalization in recent years, downtown El Paso has transformed into a cultural and commercial hub. Investors can explore opportunities in both residential and commercial properties as the city continues its efforts to revitalize the downtown area.

Eastside

Positioned for growth, the Eastside of El Paso presents a mix of suburban and urban living. With ongoing development projects and a range of housing options, this area is gaining attention from both homebuyers and renters.

Mission Hills

Characterized by historic homes and a vibrant community, Mission Hills offers a unique investment opportunity. Investors interested in restoring and renovating historic properties may find value in this neighborhood’s charm.

El Paso, Texas, presents an enticing prospect for those considering real estate investment. Its growing population, affordable housing options, and diverse market create an environment ripe for potential returns. Whether you’re a seasoned investor or exploring your first investment property, El Paso’s real estate landscape provides a promising canvas for financial growth. As with any investment decision, thorough research and consultation with local experts are essential to making informed choices in this dynamic and evolving market.

How to buy an investment property in El Paso, Texas

The process for investing in El Paso, Texas real estate can be broken into five steps:

1. Determine your investment strategy

There are many ways to build wealth with real estate. Your first step is to decide which strategy is right for you. 

Do you want a single- or multi-family home? Are you up for a fix-and-flip or a BRRRR? Or do you prefer a turnkey rental property with tenants locked in? What about a new construction project?

There are pros and cons to each real estate strategy, and before diving in headfirst, you need to determine which plan makes the most sense for you.

2. Plan your financing

Explore financing options, including conventional loans, hard money loans, or joint ventures. Understand the requirements and timelines associated with each option to make informed decisions based on your investment goals.

3. Go property hunting

Connect with local wholesalers and real estate agents specializing in El Paso to discover off-market opportunities. Consider factors such as vacancy rates, population growth, and development projects when evaluating potential investment properties.

4. Secure financing

If time is of the essence, explore financing options that offer quick approval and closing. Whether opting for conventional loans or hard money loans, having a pre-arranged financing plan positions you for better success in your plans. At Longleaf, rental loans take as little as two weeks, and short-term residential loans (AKA bridge loans) can close in 48 hours.

5. Refinance (if necessary)

If you take out a bridge loan for fast financing, you eventually need to refinance. Bridge loans are meant to “bridge” you over from the time of purchase to the time of refinancing — usually 6 to 24 months.

You can refinance with a conventional loan if you qualify. If not, a long-term rental loan comes with fewer restrictions. 

At Longleaf, we can save you fees by bundling your bridge loan together with your refinance.

Need financing for an investment property in El Paso?

Longleaf Lending is a Texas-based private lender and offers flexible loan programs designed for property investors who need to close as fast as possible. If you have any questions about investment property financing, give us a shout at 979-200-2823 or info@longleaflending.com.