Multi-Families In Dallas Area

[Brandon G.]

Is there a good market here in Dallas for multi-family properties? I don't recall seeing too many multiplexes here (though I haven't been in the business of looking). I've seen duplexes but those aren't in great neighborhoods from what I've seen.

Also, what type of cap rates are generally acceptable here?

[Hattie Dizmond]

@Brandon G. 

Just like the SFR market here in DFW, the MFR market is tight. That doesn't mean there aren't opportunities. Just like anything else, you have to buy at the right price. I have a friend who is working to lock up a 15-unit in Dallas. Further, if you look at the NTREIS trend data, investor pressure in DFW has stabilized, and a couple of large hedge funds are in the process of pulling out of the market. Don't buy into the hype that the Dallas market is topping out within 12-18 months. Or, the other hype that it's already at it's top. That generally comes from folks who don't actually understand our market. They also don't understand that DFW is not a homogeneous environment. It's a huge area. Some pockets are ridiculously hot, while others are just average, even though they may all be in decent areas. Bottom line, as REI's, we don't buy retail. We buy sub-retail. Those deals may be harder to find, but they are there. And, if you buy at the right price, the property will cash flow. If your end game is buy & hold, then it doesn't really matter what the market does in the short-term, because you're making money every month. Just keep your goals & vision in mind and don't let the Negative Nancy's scare you off from doing what you know is the right thing for you.