All Forum Posts by: Muhammad Akhtar Shiekh

@Muhammad Akhtar Shiekh I have helped fellow investors buy in Justin. Its located in the Northwest ISD. Which is very highly rated and desirable. I almost moved my family to this ISD a few years ago. But COVID happened. There is a lot of new construction there. So be warned. Most new construction builders won't sell to investors. But if Justin appeals to you I would consider Newark, TX and along the Highway 287 corridor. Most of this area is also in Northwest ISD. But property tax rates can be lower if you purchase properties in this area located in Wise County. Justin is located in Denton County. Thus, a higher tax rate. I will be happy to help you with your search. But hope this helps you get the ball rolling. 

Might be 2-3-4th choice when they don't find in their desired location in their price range.

Hey Muhammad. Is there any specific reason that you're looking to invest in DFW? If you're in CA and you're familiar with investing OOS, does it have to be the greater Dallas area? I understand that you already have a property in Frisco but there are other cities in TX that are a bit more investor friendly. With 120K to invest you should have a leg up either way. 

The market has definitely gotten to the point where you will have a hard time getting a cash-flowing property with 20% down in an area with good school district and commute in North Dallas.

My recommendation is one of the following:

1 ) Broaden your search to include areas that may not have as good of school districts, focus on communities that are seeing an influx from out of staters or upward growth in population due to displacement and have higher or increasing home-ownership rates.
2 ) Consider increasing your cash investment to reach a positive cashflow if that is mandatory for your investment.
3 ) Consider investing in a REIT or REMT instead of a property, or reconsider investing that money in stocks as this isn't a bad time to be buying stocks.
4 ) Consider partnering with another investor who wants the same kind of deal as you and can pool finances to get the return & cashflow you desire. Make sure you consult a lawyer if you decide to go this route.

DFW has become a much more desirable and expensive area since covid and getting cashflow on a turnkey property is not easy in this market. If none of the options above work you could also consider scouting for a better location for your investing needs. 

I would say for breakeven or cash flow with turnkey property you probably need to put down 30-40% these days.  So that gives you a purchase price of $300-350K probably.  That's a good spot to be in as that captures a fair share of the rental market.  Actually it would be nice to be more around $250K , but turnkey in decent area and that's going to be tough today.

So I don't think you can do that price range in any of the cities you mention except for perhaps Princeton.   One thing I don't like about Princeton right now is you also have a lot of people with the same idea.  Seems like there are a lot of rental properties there.  Too many.   You might have to go further north, like Sherman, Howe, Gunter, Van Alstyne.   Possible perhaps you could find something in Little Elm or Krum.   I like Krum better.