Housing Market in Dallas

22 Replies

How is the housing market in little elm, Denton co. Is it on the rise or slowing down, like Plano and Frisco area. I just purchase a new build and it’s been a few months I’m the only one on my block. I’m definitely concerned since this is an investment property. Any info on this would surly help. Tnx!

@Melissa Man

Do you currently have the property rented out? If yes, is it a good investment as it is even with any sort of appreciation? 

If the housing market takes a dip and it is still able to be a good investment, you won't lose any money unless you decide to pull out of the property. Say you bought they house for $250k and are happy with the returns you are making and then the market dips and the house is now worth $200k, but the return you are getting from the rental is still stable. Did you really lose anything? The market will go back up in a few years and then the house will be worth $300k and you will laugh about being concerned that the market slowed down for a minute. 

There is no loss unless you pull your money out when the value is lower. It is only a perceived loss. Little Elm is a good area and will have plenty of growth to come. 

@Melissa Man It's a little slow to rent out >2000 per month properties now. It should pick up after all the new office buildings along 121 corridor have finished. I bought an SFH in The Colony right next to 121 and put it on AirBnB until rents pick up.

@Dave Passey , it’s not rented out yet, as it’s in the final phase of being built. I will renting it once the house is competed and I make the closing. However, I’m already at a loss since I may have to put out of pocket money to make up for the 2k mortgage, since rent goes for around 1,500 to 2k. Im hopIng for the best

Well, I guess I am curious like @Matt P. to see what your plan was for this property. It doesn't sound like it will be a very good rental if your mortgage is $2k and even if you are able to get $2k in rents, you are going to be negative on the property. You will still have taxes, insurance, possibly property management, and vacancies to account for. 

I like to buy and sell houses that a teacher or a cop could buy.  Those properties will always be in demand.  As soon as your go to 1.5x or 2x that type of property, it takes longer to sell and the sales commissions take a bigger portion of your profit on each deal.  

Originally posted by @Mark Wood :

I like to buy and sell houses that a teacher or a cop could buy.  Those properties will always be in demand.  As soon as your go to 1.5x or 2x that type of property, it takes longer to sell and the sales commissions take a bigger portion of your profit on each deal.  

 I am right there with you, we like properties we can make money (or at least break even) around $1,500-1,800. 

@Melissa Man Regardless of a slow down, I'm curious how you calculated a new build in Little Elm to cash flow? The price/rent ratio in Denton County is way upside down right now. If you didn't buy this as an investment property but as a primary residence, and now you aren't using it as a primary residence, I'm struggling to understand how it makes sense to keep it. I don't see how this will ever be a cash flowing property...

I personally would probably sell while the market is still high and then buy a house when you know where you are going to live using rental property criteria when I do buy.

@Jessica G. It doesn’t make sense to keep it. I was going to move in, but since I can’t find a job down there, I was going to rent it. But now that doesn’t even make sense . As for the future of it being something like Frisco don’t see that either

I agree with Jessica @Mellisa Man - it appears to be a touch situation.  I know it was a couple of months ago, so I'm hoping you were able to figure something out by now?  If not, please reach out to me and we'll see if my partner and I can help you out! Good Luck!

Originally posted by @Bart H. :
Originally posted by @Mark Wood:

I like to buy and sell houses that a teacher or a cop could buy.  Those properties will always be in demand.  As soon as your go to 1.5x or 2x that type of property, it takes longer to sell and the sales commissions take a bigger portion of your profit on each deal.  

 I am right there with you, we like properties we can make money (or at least break even) around $1,500-1,800. 

I still think that's a little high for the cash flow business in D/FW. My target rent on a SFR 3br/2ba $1300-1500 out here in Denton and Tarrant counties. You get too much higher out here and anyone that would rent from you could buy one.