Investor · Dallas, TX · Member since 2023 · 10 posts · 5 votes
Hello Dallas Area :)
I am getting started on receiving funding for our first investment. Currently taking out a home equity loan on the house for 8.03% and debating whether to take $150,000 out or $300,000.
That said, we are going to be looking in the area for an investment property but we're unsure where to start in the great state of Texas. We are currently in the Dallas area and are looking here, however open. We weren't sure if going out further would be easy to do.
Rental Property Investor · San Diego, CA · Member since 2019 · 48 posts · 40 votes
3y
@Jennipher Jess we inherited our first rental from my father-in-law who lived in Pflugerville, a suburb just outside Austin. It's done well and appreciated a ton in the last 10 years. So I was looking for "another Pflugerville" couple years ago, since now those prices are too high to make it cash flow, and I moved up the road about an hour to Temple Texas and bought a couple SFR rentals there. They have also cash flowed okay. But then I started investing in Knoxville, TN, and realized how ridiculous property taxes are in Texas. They're 2 to 4 times what you pay in Knoxville, even though both Tennessee and Texas have no state income taxes. Texas has some of the very highest property taxes in the nation, and it just kills your cash flow. My rental in Pflugerville just doubled the property taxes and cut my cash flow in half there. For that reason I will not be investing in Texas anymore.
Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
3y
@Jennipher Jess I love buying investment properties here in the Dallas/Ft. Worth area. I also help many fellow investors buy and sell here too. You can't go wrong here. If your looking to buy-and-hold there are specific areas in the Dallas/Ft. Worth area I recommend investing based on cash flow, feedback from local property managements, and other investors. its a very detailed list I share with clients that is constantly updated. But definitely recommend staring with SFR longer term rentals for first time investors. Hope this helps you in your REI journey.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
This depends on what you are looking for. Austin Texas is the best long term play on earth. If cash flow is what you are looking for, I would stay away from Austin.
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
@Jennipher Jess
I’m in the DFW area and very bullish on our market for buy n holds long term. I’d buy something within 30-40 min from you and self manage. Feel free to reach out if you have any questions. Good luck!
Accountant · McKinney, TX · Member since 2023 · 393 posts · 580 votes
3y
I’ve been In Texas for 23 years and DFW for 21. It has been through tremendous growth and it’s continuing. I am seeing people migrate here from all over. I personally don’t foresee myself looking elsewhere and think it’s a market that deserves a strong look.
Rental Property Investor · San Diego, CA · Member since 2019 · 48 posts · 40 votes
3y
@Jennipher Jess we inherited our first rental from my father-in-law who lived in Pflugerville, a suburb just outside Austin. It's done well and appreciated a ton in the last 10 years. So I was looking for "another Pflugerville" couple years ago, since now those prices are too high to make it cash flow, and I moved up the road about an hour to Temple Texas and bought a couple SFR rentals there. They have also cash flowed okay. But then I started investing in Knoxville, TN, and realized how ridiculous property taxes are in Texas. They're 2 to 4 times what you pay in Knoxville, even though both Tennessee and Texas have no state income taxes. Texas has some of the very highest property taxes in the nation, and it just kills your cash flow. My rental in Pflugerville just doubled the property taxes and cut my cash flow in half there. For that reason I will not be investing in Texas anymore.
Accountant · McKinney, TX · Member since 2023 · 393 posts · 580 votes
3y
@Jill Addison I agree with you 100% on the property taxes being an issue as that has gained a lot of attention. I didn’t deviate from Texas, but you are also spot on about Tennessee as it’s right on par with Texas from a quality of life and cost of living standpoint. I’m a fan of Knoxville and you can add Chattanooga as an up and comer in there too.
@Jennipher Jess we inherited our first rental from my father-in-law who lived in Pflugerville, a suburb just outside Austin. It's done well and appreciated a ton in the last 10 years. So I was looking for "another Pflugerville" couple years ago, since now those prices are too high to make it cash flow, and I moved up the road about an hour to Temple Texas and bought a couple SFR rentals there. They have also cash flowed okay. But then I started investing in Knoxville, TN, and realized how ridiculous property taxes are in Texas. They're 2 to 4 times what you pay in Knoxville, even though both Tennessee and Texas have no state income taxes. Texas has some of the very highest property taxes in the nation, and it just kills your cash flow. My rental in Pflugerville just doubled the property taxes and cut my cash flow in half there. For that reason I will not be investing in Texas anymore.
Thank you for this information. Would you have any contacts in the Knoxville area to share? Like a realtor?
Rental Property Investor · San Diego, CA · Member since 2019 · 48 posts · 40 votes
2y
So sorry, I just saw your question about contacts to a good realtor in Knoxville: yes, I have an excellent realtor to recommend: Solange Velas. Hope you get this!