New to Real Estate · San Francisco · Member since 2020 · 14 posts · 18 votes
I'm planning to buy my first property in Q1 or Q2 this year. I'd like to do BRRRR cash buy with all in at <$100K and refinance in 6-12 months. I live in the SF Bay Area but am from Dallas so have been looking into the DFW area mainly. Still trying to land on exact geography though.
I'd love anyone's insights on general Texas investment pros/cons (for example it seems property taxes are relatively high in Texas but tenant rights aren't too extreme like they are here in the Bay Area)
Also which Texas cities/areas are popping best for cash flow with good rent to value and affordable? I'm already priced out of Austin but considering Dallas, Fort Worth, San Antonio, Houston, El Paso. Or some of the smaller metroplexes like Round Rock, San Marcos, Midland/Odessa, Lubbock, etc.
If you're investing in Texas, I would love to talk.
I'm planning to buy my first property in Q1 or Q2 this year. I'd like to do BRRRR cash buy with all in at <$100K and refinance in 6-12 months. I live in the SF Bay Area but am from Dallas so have been looking into the DFW area mainly. Still trying to land on exact geography though.
I'd love anyone's insights on general Texas investment pros/cons (for example it seems property taxes are relatively high in Texas but tenant rights aren't too extreme like they are here in the Bay Area)
Also which Texas cities/areas are popping best for cash flow with good rent to value and affordable? I'm already priced out of Austin but considering Dallas, Fort Worth, San Antonio, Houston, El Paso. Or some of the smaller metroplexes like Round Rock, San Marcos, Midland/Odessa, Lubbock, etc.
If you're investing in Texas, I would love to talk.
Thanks!
invest only in markers with 100k+ population and solid job growth. Otherwise, if you’re hit by a recession, smaller markets with less jobs will suffer significantly more.
I would not invest in properties costing less than $100k. Save your money so you have enough for a down payment + rehab $ for a 4/2 SFR in a solid neighborhood... in a good market, so you'll be able to attract a high quality tenant / family that will stay for a while.
For that you’ll pay $150-200k right now, unless it needs a complete overhaul.
Anything under $100k won’t attract a high quality/low maintenance tenant... and will be in a less than desirable neighborhood.
Also, skip El Paso (not large enough nor big enough employment market with diverse job base) and Houston (hurricanes/floods).
Hi Firen! I live in and invest in Round Rock, and also just closed in December on buy and hold in Lubbock that was vacant and already rented it and better than 1%. Would welcome the opportunity to visit with you more about either or both areas.
houston, TX · Member since 2017 · 56 posts · 24 votes
5y
Hey @Firen Forrest! I just moved to the Houston area, and am in a similar boat lookin’ for similar properties. Taxes definitely are higher here than in some other places, and locals have been warning me to stay clear of the flood zones.
If you have any specific areas or properties you need scoped out, feel free to shoot me a message. 👍🏻
Wholesaler · DFW · Member since 2019 · 15 posts · 6 votes
5y
@Firen Forrest Fort Worth/Tarrant County has a lot upside and maybe a little more competitive than the Dallas market seeing as Dallas is pretty saturated. If I come across anything within your specifications, I'll give you a shout if you haven't already found anything.
Real Estate Agent · Lubbock Tx · Member since 2020 · 77 posts · 44 votes
5y
@Firen Forrest I live in Lubbock and just got my first investment property here as well. Lubbock is growing and has plans to continue to grow. I read the Lubbock 2040 plan and will invest according as well.
Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
5y
@Firen Forrest Good question! San Antonio is a booming market and there is so much opportunity for BRRR, Buy and Hold, or just simply flipping properties. However I think you will find it very difficult to find anything for under 100k. Here in SA that is in C- to D areas... lots of risk and those areas are cashflow heavy not necessarily great places to flip and have property appreciate. I can tell you it is very hard to find anything for under 80k that doesn't need at least 40k in work around here. The market is booming and any deal that is around those numbers is off market cash deal or hard money only and you have to move fast. I would say a place like Lubbock, or College Station that has a bit more risk since it isn't as solidified and diverse in economy like San Antonio, Houston, Austin or Dallas would be the best route. Those college towns are great for 1% deals, they just aren't as "safe" of a deal as something in San Antonio since the economy is centered around fewer things that are the foundation of that city.
Specialist · Midland, TX · Member since 2018 · 198 posts · 148 votes
5y
Ok, got all the babies to sleep!
Permian (Midland/Odessa) is great for cashflow if you can get a good deal that works in times like now during an oil bust. The economy is 98% based on the price of oil here. Ours are doing so-so, with all but one full but rents are down about 25% or more.
Lubbock is great, decent cashflow, decent appreciation. Student housing/apartments are overbuilt there in my opinion. SFRs that target families and incidental students are our bread and butter there. Air BnB there is also doing really well.
Another infrequently talked about area is East TX. Look at Tyler, Lindale, and Whitehouse in that order. They have appreciated like CRAZY in the last year or so and just look at Indeed/Job boards. Places are hiring like crazy in the area and wages are rising. Land and homes are still (relatively) cheap in the area. I have no experience with long term rentals there so take that with a grain of salt.
Are you thinking A, B, C class properties? Single-family homes, townhomes/duplexes, small multifamily, or ?
Specialist · Midland, TX · Member since 2018 · 198 posts · 148 votes
5y
Also, @Matt Moreland and his partner Lisa Victor are investor specialized realtors in Lubbock if you decide that market interests you. He's my brother and we own and operate many of our units in Lubbock as well so he knows the market from the investor side extremely well.
Lender · El Paso, TX · Member since 2018 · 37 posts · 20 votes
5y
Hi @Firen Forrest. El Paso is a great city to buy rentals. The prices to purchase are very low, especially if you are doing the BRRR. You can definitely find something all-in for 100K here. We have one of the largest Army bases in the country. There is a great supply of renters. Amazon will also be opening their new fulfillment center here so we are still growing. Best wishes for your success!
I'm planning to buy my first property in Q1 or Q2 this year. I'd like to do BRRRR cash buy with all in at <$100K and refinance in 6-12 months. I live in the SF Bay Area but am from Dallas so have been looking into the DFW area mainly. Still trying to land on exact geography though.
I'd love anyone's insights on general Texas investment pros/cons (for example it seems property taxes are relatively high in Texas but tenant rights aren't too extreme like they are here in the Bay Area)
Also which Texas cities/areas are popping best for cash flow with good rent to value and affordable? I'm already priced out of Austin but considering Dallas, Fort Worth, San Antonio, Houston, El Paso. Or some of the smaller metroplexes like Round Rock, San Marcos, Midland/Odessa, Lubbock, etc.
If you're investing in Texas, I would love to talk.
Thanks!
invest only in markers with 100k+ population and solid job growth. Otherwise, if you’re hit by a recession, smaller markets with less jobs will suffer significantly more.
I would not invest in properties costing less than $100k. Save your money so you have enough for a down payment + rehab $ for a 4/2 SFR in a solid neighborhood... in a good market, so you'll be able to attract a high quality tenant / family that will stay for a while.
For that you’ll pay $150-200k right now, unless it needs a complete overhaul.
Anything under $100k won’t attract a high quality/low maintenance tenant... and will be in a less than desirable neighborhood.
Also, skip El Paso (not large enough nor big enough employment market with diverse job base) and Houston (hurricanes/floods).
Killeen, TX · Member since 2017 · 127 posts · 91 votes
5y
@Firen Forrest I personally invest in the Killeen area of Texas. I specifically look for C-Class duplexes that I can do value add on. The population here is around 120K and the area is pretty dependant on Fort Hood and Central Texas having the largest population of military retirees in the country. I'm still pretty early in my investing career but I think it's pretty solid.
Also in houston here. Spoke with couple of realtor and they dont see buy and hold are doable unless you go outside belt 8. I looked at 20-30 listings over the weekend and some are ok, but almost everyone is flat to slightly cashflow negative. May be i am doing something wrong but the prices inside belt 8 are too high.
I am looking at appreciation as priority but these <200k houses are gone in 5 days. 3 i looked at on Saturday are already under contract.
Heading to Midand today to look at a project and also looking for 2-1 corporate housing for long term rental. Originally from Dallas and just went under contract on my 1st brrrr. Lmk of you have any ideas!
Realtor · Lubbock, TX · Member since 2018 · 18 posts · 23 votes
5y
Hey @Firen Forrest! You're definitely on the right track with Texas! I'm a Real Estate Agent here in Lubbock and can confirm everything that @Mason Moreland said about the area. Highly recommend you reach out to his brother Matt Moreland (you can do so via BP), great guy and extremely knowledgeable! Lubbock is like its own little ecosystem where a lot of money flows in from college kids, and only a little goes out due to the seclusion of the area (DFW, Austin, San Antonio, etc. are at least 4.5 hour drive away or farther). Hope you find what you are looking for!
I’m also interested in TX market, but specifically looking for 2-4 unit MF. Is there a market in TX that’s better for this asset class?
Specifically, seems like there isn't a lot of that type of product in the Dallas area, but maybe I'm just looking in the wrong places. Most of the posts above seem to be focused around SFH, are there other small multi family deals available better in certain markets?
Specialist · Midland, TX · Member since 2018 · 198 posts · 148 votes
5y
@Alexander Wehrmann Dallas you will be hard up to find one of those. Look in tertiary or quaternary markets (Abilene, Lubbock, Tyler, Beaumont, some of the coast towns, Permian Basin, Rio Grande Valley, Amarillo, etc).
Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
5y
Yee Haw Firen, welcome back to Texas.
I am located in the Central Texas (Waco) market and this is where i focus all of my marketing efforts. I really like the mid tier market and they still present plenty of opportunities to meet the 1% rule. I also like the fact that there is less competition compared to the big cities, especially in the off-market space.
Honestly, I don't think you could go wrong with any area in Texas right now. It would help though if you at least had some type of familiarity or connection with the area, so Dallas would be a good choice.
Feel free to reach out if you wanna chat some more!
I would love to see some data on what is actually available in terms of the small multifamily. I do know they are out there, you just have to know where to look. I doubt you would have any luck on the MLS (unless you have the right agent and are moving fast) but I have had some luck with some off-market.
Part of your problem might just be your market. There is a lot of competition in Dallas and it can be hard to compete with those big guys. Like @Mason Moreland said, check out those smaller, mid tier markets. That is where I like to focus my time.
Wholesaler · DFW · Member since 2019 · 15 posts · 6 votes
5y
@Alexander Wehrmann I am originally from Tyler TX and there are but a handful. I live in the DFW metroplex currently (been here for 17 years now). Duplexes are kind of a mainstay in Texas generally but the Fort Worth market is an alternative to Dallas that is just as comparable, just kind of depends on your budget. @Mason Moreland I have family in Lubbock, outside of duplexes, are there alot MFH in that area currently?
Realtor · Dallas, TX · Member since 2020 · 146 posts · 148 votes
5y
Hey!
I think I can speak for most Dallas Fort Worth people when I say DFW is more of an appreciation play than a cashflow play. I can't find much that I can BRRRR all in for less than 100k. Average home price being at almost 300k. I don't see anything really all in at 100k. 150k to 200k in not the best neighborhoods absolutely.
1% rules here are very hard to find here, in my experience they aren't here anymore and everybody is just holding for appreciation 10-20-30 years down the road. It is also a very safe place to invest. It is business friendly ,an influx of businesses and people moving here. The economy here is stable which is why people love investing here so much.
El Paso however is a great cashflow play. Military town. They will always have jobs and always get a check on the 1st and the 15th of the month no matter what. A lot of people who retire or get out of the military are ending up staying, so the city is growing at a solid rate. Which should mean appreciation is growing at a solid rate as there is more demand for housing. There is TONS of land there to build on and expand if need be. The cost of living is extremely cheap there compared to DFW, Houston or San Antonio.