In the Texas markets, particularly Houston and DFW, there are persistent “chronic”
challenges, these include:

1. High property taxes, which tend to increase annually.
2. High insurance rates, which also tend to go up every year.

Historically, dealing with these challenges in Texas required effort but was considered worthwhile. However, with the current higher interest rates, achieving positive cash flow in Houston and DFW with a 30% down payment has become extremely difficult to find.

The continuous annual increases in insurance rates and property taxes create a situation where we're consistently pursuing cash flow. Especially when compared to alternative properties in other metros that don't face these “chronic” challenges, the return on investment is more favorable elsewhere.

These factors, along with several years of appreciating values in Texas, have contributed to increased selling activity, with investors moving to other metros.

We hope this sheds light on the challenges at hand.