All Forum Posts by: Jon Shoop

I have not a whole lot of experience with this. But seeing as you haven't gotten any other responses on here, I'll give it a go. 

I would try to start with option 2 and then if that fails you can fall back on option 1. Keep all communication with your GC via text or email so that you have proof of his mess up down the road. 

@Zach Yusuf you're welcome! The other posters also have some great points. I appreciate you asking the question because of how good of a discussion came of it!

@Zach Yusuf a market analysis is good for a broad overview of an area. But depending on the scope of it, I don't think you'll really be able to hone in on it. Especially with an area as diverse and large as DFW and North Texas.

I suppose I'm more experienced with a commercial market analysis than residential. I know for commercial, factors like traffic count on the streets as well as target businesses within the vicinity are going to weigh heavily in the decision.

Whereas residential, factors like: large campuses (universities; work campuses - Toyota, Hospitals, Texas Instruments, Alliance Center; and military bases), and outward growth of a city will weigh more heavily.

Being the area that it is and the numerous major hospitals, university campuses, and large employer facilities have lead to Dallas and Fort Worth having more renters than owners. Which is a higher ratio of renters to buyers than the national average.

So from my experience in terms of honing into specific areas, it depends more on what kind of tenants you'd want to attract more of. And then just the level of home and area you want to be in (how much money are you willing to spend per property). I have a client with a $500k+ property that cash flows and I have clients with $200-250k homes that cash flows. Then there's plenty of people buying $100-150k homes and fixing them up to rent.

Tl;Dr - I think there's going to be a lot more intricate factors needed to really hone in on a specific area to invest in. However, in DFW the metroplex in general is strong so there's not really many "bad" areas to avoid. The majority of DFW I've seen has been great for a lotnof investors.

@Jeremy Wirths is right. I would definitely run comps on it to see what a fair rental price would be.

If you were in the DFW area I would run them for you! Our company even has an app (McCaw PM app) on both app stores that allows prospective parties to request rental comp analysis right from their phone. But really right now we're focusing on continuing to grow in North Texas, East Texas, Central Texas, and throughout Dallas and Fort Worth. So I apologize that you're out of our region.

Perhaps there's a realtor on here in your area that can run comps for you. Or a property manager like myself.

@James Felder I gave a great forensic accountant I can connect you with. He's cleaned up a lot of my tax issues that a prior CPA miffed. He's located in DFW.

@Richard Helppie-Schmieder is right. Honestly as the above posters have said, they're everywhere. It just depends on the deal. Our company manages hundreds of properties all throughout DFW and North Texas, pin pointing that "money spot" region is hard. But I personally like the outlier cities surrounding the main part of Dallas and Ft. Worth. Deals can be had in Arlington too if you know where to look.

@Hobart King yeah that's really high. I would definitely recommend getting with a local insurance broker. You may be able to find one that has a lot of similar type clients as you are, and you could get some great networking out of it as well as lower insurance rates!

@Brian Orr you should also think of OKC as @Victor S. spoke about. Dallas and Ft. Worth are both very popular for B&Hs... OKC is like a mini Dallas and prices are great.

@Dylan Barnard you've gotten great advice. Try those and then maybe "magic shower glass and mirror"

@Kate Koeller I think as a property manager you know what to do. You have it in writing that in order to prematurely terminate the lease, they have to provide a 60 day notice and $3,600.

Not a bad deal for either side and you just have to get it rented again ASAP.

In the DFW and Dallas markets I would take that as it is and make sure I got the property listed before or on the day they move out and begin rehab if there's any needed.

Best of luck!