Where (cities) & what (asset types) in Dallas/Houston to invest for maximum apprec!

[Keetaek Hong]

Hi Dallas investors!

Looking for advice in defining our buy box. My wife and I are out-of-state investors exploring TX.

We understand the TX market has been taking a breather but we love the strong fundamentals.

Question: What areas and asset types would be best positioned for appreciation in the next 5 years?

A few things we’ve been thinking about

* Appreciation > Cash Flow: We care more about appreciation in a few years as long as cash-flow can cover occasional cap-ex.

* Low Hands-on operation: We prefer minimal hands-on engagement. (Currently managing STRs and that’s taking up a lot of our time)

* MFH vs SFH: We could consider a small apartment (20-30 units) but we are mindful of vacancy-risk of SFH and high-PM-cost of MFH.

Any guidance would be much appreciated! If there are non-residential (e.g. retail, etc) we would love to learn

[Taz Zettergren]

@Keetaek Hong I'm a huge fan of DFW and HOU because of their population growth and job growth. This leads to home prices increasing at a fast pace so you're definitely on the right track of which markets to invest in. Personally I prefer single family homes around that median price because that's where the most demand will be not only for owner occupants but renters as well. In my experience it's easier to liquidate single family homes compared to other asset classes, that's why I like them better. I know real estate is a long term play but you never know when you'll need access to that capital.

There are turnkey companies out there that handle the entire process for you from top to bottom so it makes for an extremely passive investment. The one's I prefer handle everything in house, from purchasing the home, renovating it, renting it, then selling to an investor then managing for them on the back end. Some even offer preferred interest rates as low as 5.75% at no cost to you.