DFW still a viable market for buy and hold?

[Nick Van Sandt]

We are trying to find a good market for a long term buy and hold SFR 3/2 and looking to get something around 100k using traditional financing in at least a B- neighborhood.

The numbers don't make sense in our market in Denver so we are looking at out of state.  After researching some of the popular cash flow markets like Indianapolis/Cleveland/Chicago/Memphis/KC/Florida/Alabama we feel the Texas would be the best fit due to growth/economy and weather.  

We narrowed it down to DFW area or San Antonio within TX.  

1.  I'm curious to hear others thoughts that have had experience in these markets to hear your opinion on which you feel would be better for a long term buy and hold.  

2.  I know DFW has been a hot market for some time now so I was curious first off if it's still even likely for a first time out of state investor to be able to find deal or if that train has left the station.  It does seem that there is some inventory in our price point in south Dallas in the Balch springs and Fruitdale areas and also southeast Fort Worth but was curious to hear if anyone on here is investing in those areas or if the neighborhoods are a bit rough.

We greatly appreciate the insight and look forward to hearing your thoughts on where you would invest for a buy and hold SFR!

Thanks,

-Nick

[Travis Lemley]

Nick,

DFW is still a good market for a number of reasons. The job growth and population growth seem to be in line. Further the jobs that are coming are long term and building the local economy. Most of what I have seen show approximately 750k new residents from 2017 to end of 2021. Housing/ apartment starts are not keeping up so the price to buy is increasing. That said as others mentioned a BRRR is not a bad start. You can find deals with some equity, but it wont be considerable. The advantage is values are appreciating at or above 10% year on year so you get it on the back side. You are also most likely not going to experience any challenge in your lease up and can be picky with your tenant selection if you get into the $200-$250k value range.