Supply and demand in DFW. The REAL expectations for deals in Dallas

[Jim Dineen]

Hey all,

I'm still fairly new to BiggerPockets and REI in general but I'm not new to business.

I'm well aware of the general rule of thumb that MAO should be 70% ARV- repairs and you should strive for rent of 2% of purchase price if you are buying and renting. That being said those figures are strictly academic unless the market will bear it.

Are the successful DFW investors working consistently within these parameters or would 70%/2% be considered a GREAT deal and 25%/1-1.5% actually be more common?

For example, in some of the forums I follow for my professional trade there is always a lot of discussion regarding the rates we charge clients. I know that they vary from market to market and some of the things people say simply isn't realistic. Working in LA (more competition) lowers your rate but here in Dallas there is less supply of people that do what I do, so I can charge more. I assume the same would apply to REI.

Thanks!