Southlake, TX, rental market

[Michael Henry]

Greeting all,

I have an opportunity in Southlake, TX, and I'm looking for insights on renter dynamics/characteristics there or other areas like it. Based on median home prices/property taxes, is it truly better to rent than buy there? Zillow rental listings are about $3500 for 3/2, 4500-5k for 4/3, and 5500 for 5/3, so ~ $1100ish per bedroom. Are Southlake renters trying to maximize house? At these price points, what difference in price forces a decision?

I'm asking these things as it will determine price we pay and renovations (updates or additions).

Appreciate any insights.

[Andrew Postell]

@Michael Henry thanks for posting.  Southlake is NOT an ideal rental market.  I mean, everyone has their differences I guess but the average home price in Southlake is $900,000.  That's WAY over the ideal price point to maximize rents.  Have you heard of the 1% rule?  You might be able to get a .5% rent in Southlake...maybe.  Ideally in the Dallas - Fort Worth area (and Houston too) we target rentals of $250k and under.  This is because most renters are in this price point, your returns are better, and there is more opportunity to find great deals.  All indicators would show that Southlake is not a good rental area.