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.
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.
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!
@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.
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.
@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%.