Is Dallas overvalued at the moment?

[Jack Smith]

Been thinking of investing in turnkey properties in Dallas.

What are your thoughts, have the appreciation boat already left? It looks like prices soared around 40-45% in the past five years. Anyone have experience investing there and if have thoughts as to whether it's too risky to invest there at the moment?

[Andrew Herrig]

@Jack Smith I think the fundamentals of DFW are solid (population/job growth). I don't expect the kind of appreciation we have seen the last 3-4 years, but I also don't see a crash. Affordable (i.e. median and below) housing is severely underbuilt so there is a large base of renters that can't afford to own a home without moving far outside the city.

That said, finding properties that cash flow AND are in decent neighborhoods is getting difficult. Property taxes are killer in Texas. In the last year or two, the rents on my properties have not kept pace with the increased assessments, let alone any other costs going up. Almost 20-30% of the rent just goes to pay the tax bill.