Evaluating investment property in Dallas - Lancaster

[Vivek S.]

Hi All,

I'm currently considering a SFH investment in Lancaster, Texas. I have been told by a few friends that Lancaster is not an ideal neighborhood (relatively high crime rates). Does anyone has any experience investing in Lancaster. If so, could you please share your thoughts.

Thanks.

[Hattie Dizmond]

While it's true that home ownership in Lancaster is much lower than in other areas of DFW, Lancaster has the exact same crime profile as Dallas proper.  Addison, which is an affluent suburb, with any number of high-end establishments, has a very high crime rate.  Why?  Probably because people tend to commit crimes where people are that have money...just sayin'.

Don't believe me?  Check out NeighborhoodScout.com.

Lancaster, Pleasant Grove, Duncanville, Balch Springs, Hutchins...those are all 'C' areas.  Very blue collar...some areas are better than others, but there are a ton of long-term tenants there and a ton of uber successful investors who buy & hold property there.

Further, I wouldn't let the fact there is very little development throw you off.  There's not a ton of development in most of the 1st tier suburbs.  They are mostly landlocked with very little available land for development.  Far North Dallas is a great example.  There's no where left to build.  Most of the development is scrape off work...tearing down existing houses to build newer & bigger.  

As for an exit strategy, you have multiple options.  You could always do owner financing, with a significant amount down.  (Grant Kemp does that all over Pleasant Grove, which is a very similar area & demographic.)  Or, you could sell turnkey to another investor.  There are people who will buy anything in Lancaster.

It isn't a war zone there.  It's just lower income, hard working people who can't get ahead enough to actually purchase a property.