Best areas in DFW area to invest in rental SFH/townhome/duplex

[Rita Lo]

Looking to find a good locale in the DFW area that can provide good appreciation and price-to-rent ratio. Depending on property type, willing to consider 150-280K price range.

I've heard good things about Arlington, but want to get some expert advice on other up-and-coming areas here!

Also, is there a strategic advantage to looking near big corporate headquarters (e.g. HDQs for American Airlines/Toyota etc.)?

[Hattie Dizmond]

There is always an advantage to looking at the areas around the new companies that are moving into the area.  No real surprise there.  As for cash flowing areas, it's a total crap shoot.  And, just like with anything else the numbers have to make sense.  Arlington is solid, but the rental rates have tended to be a little lower, so you have to find a deal.  And, I would strongly recommend the western side of Arlington, say Center Street and west toward Ft Worth, if you're south of I-30.  North of I-30 is pretty much fine across the city.  Unless you are sinking a lot of capital into it to force cash flow, I would suggest you keeping the property under $150k.  You're going to be hard pressed to much that will cash flow above that level.  Also, be aware that Texas property taxes are higher than you might expect, and they increase every 1-2 years.  You have to figure that into your deal evaluation, because a property that cash flows this year may not next year.  It shouldn't scare you away, but you definitely want to take it into consideration.

Let me know if there is anything I can help you with.