Amarillo Texas Real Estate Market

[Jeffrey Smith]

Hello BP Members,

I am reaching out to my fellow Members investing in the Amarillo, Texas area. I am in San Diego and looking at the OKC and now Amarillo markets. How is the rental market currently in the city for SFR? Looking to connect with someone who is investing there now and has a good pulse on how the city is doing as a whole. Thanks for reading and any of your time in advance.

[Scott R.]

If it was me looking in that price range I’d look south of i40 and east of i27. There’s some exceptions to this but that’s a general good rule for this price range houses, the further south/west you go generally the higher/newer they get. 

Western plateau, ridgecrest, Olsen and possibly paramount neighborhoods all come to mind. First two seem to retail at about $90/sqft and second two slightly lower, second two have bigger price swings across the neighborhood, but you should be buying at a discount and not paying these prices. Seems to be a lot of out of state investors buying and holding in a newer neighborhood “tradewinds square” it’s not quite in that area I mentioned, it’s kinda in a weird spot, but it seems out of town investors often like newer rentals and these are cheap for new stuff in a decent area. 

Stuff is just now coming down off it’s super hot and everything selling at all time highs.. market is still strong, just not “back to school strong” as not everyone is trying to move before school starts any longer.

Neighborhoods are 50ish years old and there’s huge difference between just houses next door sometimes, neighborhoods also prone to sewer leaks under the slab. Lots of soil movement around here. 

I’d say $1100-1300 prob average rents for these areas.