What Investors Don’t Consider When Buying an Investment Property in North East Texas

Real estate investing can be a great way to build wealth, but many investors — especially newer ones — overlook some critical factors when buying income properties. Whether you’re buying in Paris, Texas, or anywhere in North East Texas, it’s not enough to simply grab a low-priced property, rent it out, and assume you’ll cash out with a big profit when you sell.

The reality is: a lot of investors go to sell their properties and find out they’ve drastically overestimated how much they can get for them. Why does this happen? It often comes down to not having a long-term plan and not thinking about who your future buyer will be.

Let’s break down some of the biggest things investors fail to consider when buying an investment property and how you can avoid those mistakes.

1. Have a Future Plan — Who Are You Selling To?

One of the biggest mistakes investors make when buying rental homes is not considering the exit strategy upfront. If you plan to hold a property for 5 to 10 years, you need to think about who will buy it when you’re ready to sell.

• Are you planning to sell to another investor?
• Or are you hoping to sell to an owner-occupant — a family looking for their next home?

These are two very different buyer pools, and they have vastly different expectations.

• Investors are looking for numbers — rent-to-price ratios, cash flow, and the potential for appreciation.
• Families buying a primary home are looking for condition, location, layout, and that “move-in ready” feel.

If your long-term plan is to sell to a family (to maximize your sales price), you need to renovate, maintain, and care for the property in a way that appeals to families. On the other hand, if you only ever plan to sell to other investors, you may be able to cut some corners — but you’ll likely sell for less.

2. Renovations Matter — But Who Are They For?

When buying a rental property, it’s tempting to do the absolute bare minimum to get the property “rent-ready.” But this approach can backfire when it’s time to sell.

Many investors do cheap, temporary renovations because they know renters aren’t as picky. Renters often overlook cosmetic flaws if the home is clean, functional, and safe.

But when it comes time to sell, you’re either marketing to another investor (who also wants a deal) or to a homeowner (who expects a higher level of quality).

For example:

• An investor might overlook older carpet, dated kitchens, or basic finishes.
• A family looking to buy a home to live in will likely expect updated flooring, modern kitchens, and bathrooms, and a well-maintained property.

If you want to maximize your sales price down the road, you may need to renovate the home to appeal to homeowners, not just renters. That means higher upfront costs — but potentially much higher profits when you sell.

3. Location for Tenants vs. Location for Buyers

Investors also tend to focus on rentability over long-term desirability.

• A location might be great for renters — near jobs, schools, or public transportation.
• But it may not be desirable for homebuyers — families who want good schools, low crime, and a neighborhood with strong resale values.

If you want the option to sell to both investors and families, you need to balance both. In some parts of Paris, Texas, and North East Texas, there are areas that are great for cash-flowing rentals — but they have very limited demand from homebuyers.

In those cases, your only future buyers will be other investors, which limits your ability to get top dollar. On the flip side, if you buy in neighborhoods that appeal to both renters and homebuyers, you keep your options open when it’s time to sell.

4. Rental Quality Impacts Long-Term Value

The type of tenants you put in the property also affects your eventual sale price.

Tenants who take good care of a property help preserve its value. But tenants who cause damage or neglect basic upkeep can cost you thousands in repairs — and lower the home’s appeal to future buyers.

As a landlord, you need to be strategic about:

• Tenant screening
• Lease terms
• Regular inspections and maintenance

It’s tempting to take the first tenant who can pay rent, but long-term, it’s smarter to hold out for tenants who will treat the property like their own.

5. Deferred Maintenance Adds Up

Another mistake is ignoring small maintenance issues.

• Investors might leave an old roof in place because it’s not actively leaking — but a future buyer will definitely factor that into their offer.
• Outdated HVAC, plumbing, and electrical systems might work fine for tenants — but they could scare off potential buyers or lead to lower offers.

It’s fine to minimize expenses while renting, but keep in mind: the longer you defer maintenance, the more you pay when it’s time to sell — either in repairs or in reduced offers.

6. Closing Costs and Selling Expenses

Many investors overlook the costs of selling — especially if they paid cash when buying.

If you bought without a lender, you probably didn’t need a survey, but your future buyer will. In North East Texas, that survey could easily cost $600-$1,000 or more, depending on the property size.

Other costs investors forget include:

• Title insurance
• Realtor commissions
• Concessions (repairs or closing cost assistance)

Those add up — and they come directly out of your profit when you sell.

7. Investor Price vs. Retail Price

There’s a huge gap between investor pricing and retail pricing.

• Investors want properties priced so the rent is at least 1% of the purchase price (for example, a $100,000 house should rent for $1,000/month).
• Homebuyers don’t think that way — they’re focused on condition, layout, and location.

If you want to sell for top dollar — the retail price — you need to prepare the property for retail buyers, which often means more updates, better marketing, and better tenant care while you own it.

8. Long-Term Planning is Key

In Paris, Texas and across North East Texas, real estate investors have to balance:

• Cash flow during ownership
• Appreciation potential
• Exit strategies — investor sale vs. homeowner sale

Without a clear plan, you could end up stuck with:

• A property that only appeals to lowball investors, or
• A property that needs expensive upgrades to appeal to retail buyers.

Before you buy, ask yourself:

• How long do I plan to own this property?
• What kind of shape will it be in when I sell?
• Do I want to sell to an investor or a homeowner?

By answering those questions upfront, you can make smarter buying, renovation, and management decisions — and ultimately make more money.

Final Thoughts

Investing in North East Texas real estate can be incredibly profitable — if you go in with a plan. Whether you’re buying your first income property or adding to a growing portfolio, always think about the long-term exit strategy, not just the short-term rent.

For expert advice on buying property, managing investment homes, or planning your real estate investments in Paris, Texas and the surrounding areas, reach out to:

Leah Rolen, Realtor
Keller Williams
469-744-5309