Dallas versus Phoenix

[Sumit Sehgal]

Hello everyone,

I have narrowed down my list of cities to invest to Dallas versus Phoenix.

I was wondering if anyone who invests in these cities comment on the risk of natural disasters prevalent in these areas? What specific additional insurance risks need to be accounted for?

[Zhitao Cao]

I am also new and happens to look into both lately.  Just a few 2 cents and basic observation:

1. AZ has much lower property tax.  For a 200k property, it is easily $200.  You need to make $200 more rental in TX

2. Appreciation potential of Dallas is much higher.  If you look into Zillow in AZ, I see lots of auctions, but or TX, none and DOM is so low in TX right now...

3. Dallas has lots of new constructions which is < 300k.  Phoenix has very old house and seems like price is much higher

I don't have an answer, but AZ is better for CF, but TX is better for appreciation (a new comer's observation only)