All Forum Posts by: R Metzgar

The big companies are moving to the metro areas. So DFW, Houston, Austin. The growth we've seen here in DFW over the past years has been beyond anything I've seen before (population, housing, infrastructure...).

Speaking specifically about Dallas-Fort Worth...
Home builders are typically only building above the 300k price point, that's when their profit margins increase, so that's where you will find most homes priced at. This also means that homes under 300k (especially under 200k) are the most sought after. The other day we sold a rental property for a client, and had 21 offers in 2 days. More than half above asking price. In the end it sold for 176k. Our client bought it for 90k just 3 years before.

So home prices are going up. Rental prices started to stagnate. There are only so many 100-150 dollar yearly rent increases you can push onto tenants before they move out.

Historically, homes in Tarrant County have had better returns than in Dallas County. So ideally a home in a good school district, but in the 150-250k price range. Anything under 100k will be in a C- neighborhood, which comes with its own challenges.

There are lots of wholesalers here that we can connect you with. Those properties come with the challenge of you needing boots on the ground to get the rehab done. But it might get you 10% equity in the end. Unfortunately the 25% equity days are over here. Wholesalers are selling at 85% ARV, and often their numbers are not accurate.

Anything truly turnkey will most likely be either overpriced or in a lower income neighborhood. There is just no way of making good money with a turnkey business here in DFW. More than 2 years ago, yes. Now, you are essentially buying at or above market price with a turnkey provider. That's why there aren't many here.

Hope this helps. This is a great and booming area, very landlord friendly, very stable (even during the last crisis). And there is still some room for appreciation.

Always tough to know what the next growth cities are, but in North Texas I would look at the 380 corridor....so that is Highway 380 between Denton and McKinney and north of that between I-35 and 75 all the way to Oklahoma.   Closer to 380 are the hotspots right now.  Some of the fastest growth in the country, but over time I expect it will stretch out.

Even now I see things starting to move and develop along 380 from Denton to Decatur and I expect at some point it will between McKinney and Greenville.

We don't have much turnkey in DFW area, but that's ok.

You can always buy a vacant or occupied property and have your agent put a tenant in it for you and self manage or you can also hire a PM to put a tenant in it and manage it for you.

Occasionally we do find tenant occupied properties for sale, but that is not the norm on single family.  It is the norm on multifamily.

Welcome to Texas...

I am in the North Texas area and have invested here as well. This is a buyers year, so get in while you can :) @R Metzgar