Is the Texas Housing Market Still a Buyer’s Paradise in 2024?

[Kent Ford]

With rising property values and high demand across the state, do you think Texas is still an affordable option for first-time homebuyers? What trends or areas are you seeing emerge as the new buyer hotspots?

[Kent Ford]

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@Kent Ford

I've got 18 SFR in the DFW area. Property taxes and insurance have gone up on average of $100 year after year. Some of my properties insurance and taxes go up over $200 every year. And I'm in the affordable/cheaper C+ class hoods with rent in the 1800-$2200 range. I try to pass that onto my tenants, but most are struggling with their rent as is since inflation/cost of living over the past few years have wiped them out. Just factor that in your numbers. And expect insurance to keep sky rocketing due to all these storms.

Thanks for sharing your experience! It's definitely tough when taxes and insurance keep rising, especially with tenants already feeling the strain. Have you explored any strategies for managing these cost increases without placing too much burden on your tenants? Maybe creative financing options or shifting property classes could help ease the pressure. Curious to hear how others in the DFW area are handling this too!

I target cheap C+ class homes because turnovers amongst this class of tenants is almost zero, and the profits are much higher. Affordable/starter homes in the DFW area tend to appreciate much better than higher end homes. So I’m sticking with my strategy investing in working class hoods near major freeways and downtowns. I have shifted in the last 3 years to renting by the room at 4 of my properties for much better cash flow. But I’m confident market rent will come up to meet inflation and the cost of housing. 

Do you personally manage rent by the room?  I’ve had several properties where the houses would’ve been a good fit in my opinion I just was nervous to be the manager myself.

I’m mainly focused on fix-and-flip projects at the moment, so managing properties isn’t something I’m actively pursuing right now. That said, I’m not completely closing the door on it. I’ll ask around with colleagues and friends to see if anyone might be interested in property management. We’d love to stay in touch with you!