Best area in Dalls/DFW to Invest in Rental properties

[Chai Jonn]

Hi,

I am new to investing. I live in Austin. I like to invest in rental properties. I like to invest in 2 properties each around $125k

1. Which areas are the best for rental properties and appreciation in Dallas/DFW areas?.

2. Which are the best for investments for rentals? SFH or Condos or Apts etc?

Please advice. I am new to this investment things

Thanks

Chai

[Gonz Trevino]

Why specifically DFW? I have heard great things of the area in between such as Alrington, Colleyville, etc. Also I would pay attention to San Antonio as well if I was you. :)

[Chai Jonn]

@Gonz Trevino

I plan to settle down there and I am familiar with the Plano area. I lived also in Austin. I am thinking San Antonio too. I like to focus on Dallas, Austin and San Antonio. 

What are some good areas to invest in San Antonio. Any advice on upcoming areas?

[Jason Sims]

There are a lot of cities that make up the DFW metroplex. Are you looking for fix and flip or move in ready to go properties? I can come across both, just let me know.

[Chai Jonn]

@Jason SimsI am looking for move in ready SFH. I am more of a buy and hold types. I like to buy something which can have good appreciation and also decent rent.

[Gene Livingston]

For that price range in Dallas area I'd have a look at Richardson. Specifically the subdivisions on the West side of 75, around the intersections of Beltline/Waterview and Arapaho/Waterview.  There's also the obvious areas that investors always like,  Garland/Mesquite. Lot of houses in Arlington would also fit that price range. Upcoming areas in San Antonio, I guess right now I'd say Woodlawn Lake, but there;s a lot going on here.

Condos- I'd like to like them, but I don't. Condos seem to be great in some states, but they just seem to me not to work well in Texas for investors. The desirable condos cost too much for what you get, and the cheap ones will never appreciate. 

[Jason Sims]

Chai,
I would like to get more information from you on how I can help you get what your looking for. Your contact info is blocked on this board.

[Geode Pratt]

Chai,

If you live in Austin, why not invest in Austin. It would be much easier than investing out of town. There are a TON of great rental areas in DFW, but the market is hot, and prices are stupid high right now. Don't expect to be able to buy move in ready AND get appreciation in this market. It could happen, but the market could just as easily cool in the next 12 months. (election)

$125k will not get you into Richardson unless you want condos. I just did an MLS search in Richardson for under $150k and got 1 SFR not under contract and it is not move in ready.

@Gonz Trevino - Colleyville and Arlington are considered DFW. Everything in, around, and between Dallas and Ft. Worth is considered DFW.

[John Oyedele]

Geode Pratt I am currently saving towards first rental purchase and targeting the Arlington area (starting in my backyard). My business plan was to target 3/2/2 that needs a little work (REOs or short sell) and force some appreciation with the ARV. Hoping to keep purchase price under 100k. Am I being realistic with those numbers in today's market?

[William Corcoran]

@John Oyedeleit is realistic to find properties in Arlington. However, the market is still HOT, and they go fast. Do you have MLS access or an agent? Good deals are usually gone before they hit the big RE sites (e.g. Zillow, realtor.)

I have a trustworthy agent if interested (full disclosure, I'm marred to her.)

[Chai Jonn]

Thanks everyone for your responses. I will be settling down in Dallas in next few years so that's the reason I am looking for properties in/around Dallas. 

@Gene LivingstonWhat are your thoughts on Arlington area? What's the usual price range for a SFH there?

@Geode PrattI am planning to buy in next 4 to 5 months from now. My budget is around $125 to $150k. What others areas are upcoming other than Arlington and Colleyville.? Any areas around DFW airport? What about Hasslet

Keller

Mansfield

Bedford

Watauga

[Rod Hanks]

Arlington from 85-125k should net some bread and butter rentals.  PM me if you need my help.

[Tom McGivern]

John, the $125-150 budget, is that your down payment, or your purchase price?

While zillow isn't reliable for an appraisal, it's not bad for filtering and searching communities at the 30K foot view..  If Zillow says the house is worth 350K, it could be off by 10s of thousands.. BUT, if the area is showing all the homes over 300, while it's off, you can bet it's not a 125K neighborhood.  To the East, you need to go east of US75 to find those numbers.  North, look at The Colony, Lewisville, Farmers Branch.. but, if you're looking for "move in ready" at that price, you're probably being pushed further toward Denton..

I don't venture south of Dallas, or West of I35E so can't help you there... (if I've helped at all)..

Tom

[John Oyedele]

@William CorcoranI do not have MLS access or an agent so thank you for offering to help me with that. I'll shoot you a PM for details.

@Rod HanksThanks for the offer, I'll shoot you a PM shortly.

@Tom McGivernthat's my purchase price.  Great idea on using the big sites to get an idea of the average prices.  I am not necessarily looking for move in ready homes and willing to do small renovations to get a great deal.

[Anderson Schulle]

Welcome to investing in DFW @Chai Jonn!

If I understood correctly, you are looking for rentals that are ready to go for 125k price range (all-in). Will you be financing or paying cash, because some of the discounted deals will be hard to get if you are doing traditional financing.

As to areas to invest, in the 125k price range (ARV), I would suggest for you to look into some parts of Mesquite (East Dallas) and Garland. Some parts of Arlington. And definitely the North Fort Worth, Watauga, North Richland Hills, Richland Hills, Euless, Hurst Bedford area. We just rented a house for a client in Watauga on the first day it was listed, and have more than 20 families who also wanted it but were too late...

Personally, I prefer the Fort Worth side of town. You can get better deals in that price range. North Dallas is great, but much more expensive.

It'll be key to know your neighborhoods, the type of properties that are higher in demand, and of course, be patient to find the right deal.

If I can be of any help, let me know. We work mostly with foreign investors, but wouldn't mind working with a fellow Texan :-)

[Anderson Schulle]

Originally posted by @Chai Jonn:

What others areas are upcoming other than Arlington and Colleyville.? Any areas around DFW airport? What about Hasslet

Keller

Mansfield

Bedford

Watauga

Just to address some of the areas you mentioned...Keller and Mansfield are probably going to cost you a little more than 150k, although you could find a deal occassionally. These are great school districts and therefore very hot markets. Haslet is a good area, lots of new development coming to that area as a whole. Not sure about finding homes in the 125-150k range.

[Chris Soignier]

You'll be lucky to find an empty lot in Colleyville for your price range, it's a high-end community filled w/ expensive homes and high per-capita incomes.

Arlington is a great area to look.    Also Hurst, Euless, and Bedford, and North Richland Hills.    I'm a REALTOR, and know these areas well - let me know if I can help.

[Chai Jonn]

@Rod HanksThanks for the offer. I will contact you soon

[Chai Jonn]

@Anderson SchulleThanks for the info. I am looking at traditional financing with 20% down payment. I can do a max of $135k. And after couple of months I like to buy one more in the same price range. I am looking for something I can rent immediately.

SFH, Safe, in area of appreciation, positive cash flow, good schools, easy to rent etc

Based on this info can we narrow down to more specific areas?

[Chai Jonn]

@Chris Soignier What is the usual price range for SFW in Colleyville and Grapevine?

[Chris Soignier]

Originally posted by @Chai Jonn:

@Chris Soignier What is the usual price range for SFW in Colleyville and Grapevine?

 Rolling 12 month median sales prices for Colleyville and Grapevine are $511K and $315K, respectively.    Average prices are $577K and $335K.

By comparison, Arlington's rolling 12 month sales price is $160K.

[Chai Jonn]

@Chris Soignier Those prices sound too much of hapioness to me lol

[Chai Jonn]

happiness

[Chris Soignier]

They're stats, straight from the MLS. You really need to visit each city to understand the differences. Colleyville has been nicknamed "Colleywood" b/c of its affluence and how nice the neighborhoods and housing are. Great place to live, probably not so much to invest (though I successfully wholesaled a $400+K house there last year).

[Anderson Schulle]

Originally posted by @Chai Jonn:

@Anderson SchulleThanks for the info. I am looking at traditional financing with 20% down payment. I can do a max of $135k. And after couple of months I like to buy one more in the same price range. I am looking for something I can rent immediately.

SFH, Safe, in area of appreciation, positive cash flow, good schools, easy to rent etc

Based on this info can we narrow down to more specific areas?

Sounds like NFW, parts of Watauga, NRH and maybe north parts of Haltom City (outside the loop) would be good areas for you to find a property within your set of criteria.
A friend has a 3/1.5/1 in North Richland Hills that is already rented and that you could buy for about 100k (it's worth about 110k).

PM me if you are interested.

[Saheed Oseni]

Hello All!

I know this thread is now over three years old, but I thought to continue it instead of starting a new one. I'm a newbie in REI and even on BP and looking to acquire SFHs for rental in the DFW area , I'd prefer the fort worth area simply because its nearer, but open to surrounding cities in the DFW. My ask here is for an experienced realtor who can assist me with the BRRR process. Any pointers will be much appreciated.

Thanks in advance!

Saheed Oseni