Aubrey, TX · Member since 2015 · 12 posts · 3 votes
I've noticed there's a good bit of investors in the Dallas area and was looking for some advice as I start with my first rental SFH. I am not opposed to looking within an hour or two drive from where I currently live, which is borderline Plano/Frisco.
If someone could share their experience in this area, I'd greatly appreciate it.
Rental Property Investor · Dallas, TX · Member since 2012 · 502 posts · 263 votes
11y
if you are looking for cash flow, I would look at "inner ring" suburbs such Richardson, Garland, Farmers Branch, etc. These tend to be older houses, but they cash flow better than those in Frisco/McKinney areas. A lot of investors target Garland and Mesquite. You should be able to find something in the 1.3-1.5% rent/price rule range.
if you are looking for cash flow, I would look at "inner ring" suburbs such Richardson, Garland, Farmers Branch, etc. These tend to be older houses, but they cash flow better than those in Frisco/McKinney areas. A lot of investors target Garland and Mesquite. You should be able to find something in the 1.3-1.5% rent/price rule range.
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
11y
@Andrew Herrig is spot on. If you're looking at Richardson/Plano/Allen, the rent:value equation tends to be slightly better on the East side of 75. Also, there a sweet spot with 4-bedroom homes. You get a significant rent bump with the extra bedroom. You can also look at the areas of Garland that feed the Richardson ISD.
In general, you'll find the North & Far North Dallas areas command higher rents than other comparable looking areas of the Metroplex - ie Southwest Arlington. However, Arlington (south of I-20 or SW Arlington around the lake - Ditto & Little Rd Elementary schools), HEB, Keller, Watagua, North Richland Hills all have opportunities. You just have to be ready to move quickly, when a deal comes available.
Another area to take a look at is Rowlett. The property taxes are significantly lower, so it improves your cash flow, without changing the factors of the deal.