Looking for info on Texas cities for first rental property

[Angelica Aurea]

Hello, a couple of friends and I are looking to invest in our first rental property in Texas. We are currently living in California. We are debating between Dallas, Austin, and San Antonio, but also open to other cities in Texas.  

This is our criteria:

3 bedroom

At least 1.5 bath

Single family home in livable/rentable condition.

budget: 200k.

Open to seller financing and conventional loan

Open to suggestions on cities and neighborhoods. Your input is greatly appreciated. Thank you BP community!

[Bruce Lynn]

Welcome to Texas.

#1.  Don't count on seller financing.  Normally not an option.  If it is, might look something like 10-20% down 10 year term 12-14% interest.  Rarely would those type of numbers work for an investor.

#2.  $200K is now pretty tough in DFW area.  Maybe not impossible, but tough.  Might look north to some of the smaller cities outside of DFW, like Sanger, Gainesville, Denison, Sherman, Anna, Howe, Van Alystene, Gunter...so Cooke and Grayson County.

#3.  I'd say get 3bed/2bath if you can and 1car garage or bigger.....with this type of property you're trying to get people out of apartments and into a house, so there has to be some incentive....more baths and a garage helps.

#4.  Might be a little easier if you can bump up to $250,000

#5.  If you haven't done it already, find your lender and get preapproved for investor loan....that way you'll have an idea of down payment, closing costs, interest rates, payments...and if there are any unknown dents or dings on your credit it will give you time to clean them up.