Purchase Rental Property in Dallas

[Christian McGlade]

Hello. I am looking to purchase a rental property in the Dallas Fort Worth area, although I am open to other Texas cities. I currently live in Sacramento & San Diego; it seems as though, however, that Dallas is quickly growing, has a strong economy, and handled the last recession well. Moreover, the ROI appears to be better in Texas.

My budget is $100,000 - $150,000 cash, and I would appreciate feedback in which specific communities I should be looking.

Thanks!

[Cal R.]

Do a search and look at how many other people are interested in DFW. Do you want to buy a house for $240,000 that rents for $1800? Not many people are going to rent a 1600 square foot house (that would be a small DFW house) for even $2,000 when they can buy a brand new 3,000 square foot house in a nicer area for the same cost per month (I have 3700 sq ft in a great neighborhood and my mortgage is only $1400). Don't forget we also have an unlimited amount of space where new homes are being built as fast as they can put them up.

Don't get me wrong, my friends and I have made a lot of money off of out of state (and foreign) investors blindly throwing cash our way because they read that DFW is a great place to invest, but Texas isn't California and the sky is not the limit here for housing prices or rents.

You are more than welcome to send your money this way (we will also tax you to pay for our schools and $50,000,000 high school football stadiums) but if you are going to invest out of state there has to be better markets than DFW.

I hope someone chimes in that completely disagrees with me. I just see these posts over and over, and I am not sure what price/rent/salary numbers people are using to determine that this is a great out of state place to invest.