We recently moved to North Dallas area and are looking to buy our first house, which I later want to convert to a rental property. Initially, I was looking at Frisco and Plano areas but not able to find any property in my budget (~250K) that satisfies the 1% rent rule.
From what I gather McKinney, Prosper and Allen are up and coming places. Would these areas, specifically McKinney a good area to start our first investment property? Thanks for your inputs.
Realtor · McKinney, TX · Member since 2016 · 106 posts · 90 votes
6y
@Madhu
I agree w @Sherry on those area, also consider Melissa or Anna.
I think Melissa has massive opportunity with a new 380 loop coming in it will really grow the area. My perspective Longview it’s one of the better opportunities.
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Madhu Alli
I used to live in Sherman, TX for a number of years (and still go back there). Quite honestly, any town from Dallas all the way up to basically the Oklahoma border is a good area if you can get a property for a price that still cash flows. That's not easy there these days!
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
6y
@Madhu Alli. You are correct, it is very hard to hit the 1% rule, especially if you want a turnkey property. Just make sure you pull the rental comps when going further north - it’s important to make sure there are companies already established within a 1 hour commute or looking to move to that area within the 1-2 years that you will be house hacking.
Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
6y
Welcome to North Texas. As others have mentioned, Most cities in TX are "good areas" for rental properties. Jobs are growing and we continue to get a flood of out of towners who relocate here. Best of luck.
Real Estate Agent · Dallas, TX · Member since 2016 · 432 posts · 341 votes
6y
@Max A. you're not going to find SFR in N Dallas that fit the 1% rule. Period. Especially if you're buying turn key. Maybe in a few months with furloughed and unemployed individuals potentially losing their houses you could find opportunities with distressed properties at a discounted price but definitely not turn key in N Dallas at 1%.