Investing in Collin County (Frisco) or Tarrant (Keller)

[Vindy M.]

Hey Folks, 

I'm a fairly new RE investor. I recently have moved to Frisco, Tx from 2014 from midwest and boy the market is hot here. Properties have shot up like crazy in the recent past. I would like to invest however thinking the appreciation is still there atleast for another 3-5 years especially when still lot of people and companies are moving. With that assumption (please chime in if you disagree), I would like to invest in Collin County - around Frisco preferrably or Tarrant - Keller ISD for SFR around $200K. In this market, i'm not getting 1% rent, but is it ok to invest here especially when the market is hot and me being local ? Taxes are definitely high here but being local makes me feel little more comfortable. Please advise. I'm looking at possible SFR properties - Tarrant county/Keller ISD, the range is about $101-110/sq.ft. and rents are .80c/sq/ft. --> $1450-1500 on a 3bdrm/2ba 1800 home.

Any thoughts/advice/suggestions for a rookie are greatly appreciated.    Thanks.

[Doug Johnson]

Originally posted by @Vindy M.:

Hey Folks, 

I'm a fairly new RE investor. I recently have moved to Frisco, Tx from 2014 from midwest and boy the market is hot here. Properties have shot up like crazy in the recent past. I would like to invest however thinking the appreciation is still there atleast for another 3-5 years especially when still lot of people and companies are moving. With that assumption (please chime in if you disagree), I would like to invest in Collin County - around Frisco preferrably or Tarrant - Keller ISD for SFR around $200K. In this market, i'm not getting 1% rent, but is it ok to invest here especially when the market is hot and me being local ? Taxes are definitely high here but being local makes me feel little more comfortable. Please advise. I'm looking at possible SFR properties - Tarrant county/Keller ISD, the range is about $101-110/sq.ft. and rents are .80c/sq/ft. --> $1450-1500 on a 3bdrm/2ba 1800 home.

Any thoughts/advice/suggestions for a rookie are greatly appreciated.    Thanks.

I live in Frisco and stopped looking at SFR 2 years ago. Maybe I got out too early, but the market is very hot and near a peak. IMHO, It will be ok for another 12-24 months as the curve flattens out, but we are near the top of the appreciation cycle. If you can't get 10%+ cash-on-cash, keep looking. Two years ago, I switched to multifamily investments and they have been doing well. I like the concept that I can force appreciation by increasing NOI. MF in DFW is also getting expensive, so my last acquisition was in Norman, OK. Proforma is 12% cash on cash and 19% IRR on a 5-year proforma.