Texas Laws on Out of State Investors

[Audrey Sommer]

A couple weeks ago, I was talking to a texan resident that came up to Washington State to help the company I work at, train our team for a new product launch. I was picking his brain about the attitude and culture of the locals towards real estate investing and out of state investors. He told me the sentiment towards out of state investors isn't good. Texas as a whole bans texas homeowners from re-financing their home to fund investment properties in texas. He also said there are a couple counties in Texas (I forget the names), that ban out of staters from buying investment properties as well. 

Is anyone investing in texas (in long-term rentals) that knows about this and has experience with this? How true is this, and how could that affect my real estate strategy if I were to enter the Texas market as a Washington State resident? Anyone familiar with this that can help shed light, it's appreciated. Thanks! To me, this is a red flag.

[Greg Scott]

Sounds like he was feeding you a line of garbage.  The idea of restricting what you do with your own cash, just because it was a refi, is probably unconstitutional.

I know a lot of people investing in Texas from both inside and outside Texas.  Never have I heard such a thing.