Question 1

What should I budget for property taxes on a bank-statement purchase in the City of Tyler?

Accepted Answer

Plan on roughly 1.63% of assessed value, with no homestead relief on an investment property. The City of Tyler investor stack runs Smith County 0.364231 plus city 0.236452 plus Tyler ISD 0.845000 plus Tyler Junior College 0.185068, for 1.630751 per $100 on the Texas Comptroller's 2025 rate table. That's the same regardless of how your income is documented, so build it into the deposit-based cash flow you're using to qualify. Confirm the parcel's exact overlays with Smith County Appraisal District before you close, and check the math with your CPA.

Question 2

Does it change my numbers if I buy outside the Tyler city limits, in Whitehouse or Lindale instead?

Accepted Answer

Yes, meaningfully. The full county-plus-city-plus-ISD stack runs 2.046986 per $100 in Whitehouse and 1.664471 in Lindale, against 1.630751 in the City of Tyler and just 1.463164 on an unincorporated parcel in Tyler ISD with no city rate at all. On a $250,000 purchase that's a real swing in annual carry between submarkets that sit within a few miles of each other, and it's worth running before you lock in a bank-statement deal on the deposit history you have.

Question 3

My deposit history is thin. Are there other no-tax-return options for a Smith County rental?

Accepted Answer

Possibly a DSCR loan instead, which qualifies on the property's rent rather than your bank statements or your tax returns. Tyler's gross rental yields run about 6.1% to 6.9% on Zillow's June 2026 figures (Tyler 6.45%, Whitehouse 6.87%, Lindale 6.15%), and rents rose 1.2% year over year while values slipped 1.0%, a combination that tends to help a DSCR ratio. Which product fits depends on your file; talk to us and we'll tell you straight which one qualifies faster.

Question 4

How does closing actually work on a bank-statement purchase in Smith County?

Accepted Answer

The same as any other purchase here, plus one East Texas wrinkle worth checking. A title company runs escrow, Texas has no real estate transfer tax, and title premiums are set by the Texas Department of Insurance so they don't vary by title company. Smith County sits at the edge of the historic East Texas Oilfield, so read Schedule B of the title commitment for a mineral reservation before you close. If one shows up, the Minerals and Surface Damage Endorsement (Form T-19.2) costs a flat $50 on an owner's policy under TDI Rate Rule R-29.1, and it's worth asking your title company for it. If you're weighing a quick close against holding for rehab, our fix and flip loan is the faster-turnaround option; talk to us about which fits your deal.

Question 5

Does the City of Tyler require a short-term rental permit, and is there a local tax to plan for?

Accepted Answer

As of the July 2026 codification, the City of Tyler's code of ordinances has no short-term rental permit, registration, or occupancy rule. A full-text search of the code turned up zero results for "short term rental," "short-term rental," and "vacation rental." That's a finding about the codified text, not a guarantee that no approval is ever needed, since it doesn't rule out an administrative policy or a pending council item, so confirm current practice with the City before you underwrite around it. Plan on the city's 9% hotel occupancy tax either way: the code's definition of a taxable "hotel" and "guest room" is broad enough that a whole-home short-term rental may fall under it, though that application to a specific property is a reading of the ordinance, not a city ruling. Confirm your structure's occupancy tax exposure with the City before you close on a bank-statement deal built around nightly income.

Question 6

Tyler's mid-tier value was $255,430 in June 2026. What does 20% down come to on that?

Accepted Answer

About $51,000, plus roughly $4,158 a year of tax escrow. Down payment on this program starts at 20%, so a $255,000 purchase is $204,000 financed and $51,000 from you (255,000 x 20% = 51,000). Tyler's mid-tier value was $255,430 in June 2026, so that is close to a real market number rather than a round example. Budget the tax escrow on top, roughly 1.63% of assessed value inside the city at 2025 rates with no homestead relief, about $4,158 a year on that basis. Income is documented with bank statements or not at all, on an investment or business-purpose file. Subject to underwriting.

Question 7

Arp is the county's lowest-cost stock at $170,191. Is a purchase there too small for a bank statement loan?

Accepted Answer

No. Loans start at $100,000 and run to $3M, and an Arp buy clears that. Every submarket in the county clears that floor on Zillow's June 2026 values: Arp is the lowest-cost stock at $170,191 and Tyler proper runs $255,430. At the 20% minimum down payment a $170,000 Arp purchase is a $136,000 loan (170,000 x 80% = 136,000), still above the minimum. Subject to underwriting.

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