Buying today in Dallas? What's your strategy?

[Hunter Peterson]

Hello DFW BP! I'm newly relocated to Dallas, selling my home in California, and looking to rent in the Plano area for proximity to work and a number of other reasons. I'm looking to rent because several people I trust have told me that they wouldn't touch the housing market in Texas with a 10 foot pole right now due to the high prices and the flood of people relocating to the state making the future unpredictable. That, plus the need to acclimate to a new city before making any long-term real estate decisions.

However, I have heard that some people are still seeing success in places like Bishop Arts district when it comes to fix and flip properties. New city and new job kind of preclude me for throwing that much time into real estate right now, but it still definitely interests me to understand the market.

If anyone out here is still buying in this incredibly high market, would you mind sharing your reasons why and what's working? Thank you!

[Andrew Sheppard]

Hey Hunter! Congrats on the move. 

My wife and I recently purchased an SFR in McKinney as an investment property. We recently moved to Austin and are also from California.

I see a lot of people talking about how Dallas is expensive these days, but frankly I don't agree. Interest rates are going up but they remain ridiculously low from a historical perspective. The economy especially in Texas and Dallas is BOOMING. Population trends continue to favor the region. And rents look good. 

Now buying rentals will be safer than flips in a rising interest rate environment, but I don't think you can wrong with flip if you're super economical on budget (i.e. labor) and/or using more cash than debt. 

I'm a big fan of the Frisco and McKinney region simply because of the magnitude of corporate investments going into the region. Not sure if there are a lot of fix and flip opportunities there, but worth taking a look.