Dallas Rental Market

[Lynn Cornell]

Hello everyone! I am thinking of selling my condo in the LA area and do a 1031 exchange. The condo has been rented out for 6 yrs now. I will probably net around $325K after all expenses and fees. I would like to reinvest the proceeds in maybe 1 or 2 single family homes in the Dallas suburbs (low to no HOA fees would be ideal as I am paying almost $400/mo. in HOA fees for condo).

Do you think the Dallas rental market is now saturated or is it still a good investment? If so, what areas should I be looking at (want low crime, low vacancy, moderate to high appreciation potential, within 45 mins of Dallas and DFW)?  Should I be worried about tornadoes? I noticed that homeowners insurance is quite high in Dallas. Is that a concern for most RE investors? I'm planning on keeping these new properties long-term and we MIGHT actually move to the Dallas area in the distant future. Currently, I've been looking at McKinney, Sachse, Denton and maybe Mansfield. Am I on the right track? Your opinion on any of my questions will be highly appreciated. Thanks in advance!!