Investment Opportunity in Texas

[Jay Kumar]

I was looking into doing out-of-state rentals and considering texas- although debating between Frisco/Mckinney, Austin, and SA. Austin and Frisco's numbers look difficult, so wanted to learn more about San Antonio or Mckinney- the locations to target, the current market trends etc. Any recommendations on which city would be a better option to consider for properties around 300k for long-term buy and hold with good cash flow?

[Bruce Lynn]

@Jay Kumar   Frisco is very tough now.  Prices have gone up greatly and rents have not caught up.  There are also a lot of rentals now.  To me too many.   However the good news is there is opportunity in several of the surrounding communities.  Places like Little Elm, Aubrey, Celina, Melissa, Anna, Princeton maybe Wylie and Sachse.   My suggestion is to stay closer to $200,000 if you can.  Maybe you can leverage your $300,000 and get two for $400,000 or 3 for $600,000.

Even $200,000 is not easy any more in these cities but we do see some properties in this range.  I suggest this range as you think about who rents and what they are willing to pay.  Much bigger market of people willing to pay $1650/$1700/$1800/month vs those willing to pay $2600/$2700 month for that extra $100,000 in purchase price from $200 to $300K jump.