Dallas a good market for cash flow?

Dallas a good market for cash flow?

Real Estate Investor · Jupiter, FL · Member since 2013 · 42 posts · 14 votes

I keep reading all these great thing about Dallas and other major cities in texas being great for investing in buy and hold properties. But whenever I run the numbers it seems like its pretty much at a Rent to value of 1% which doesn't seem like there would be much cash flow. Example a 100k house in Mesquite tx would rent for $1000 a month. Other areas of the country (ie Milwaukee) seem to be getting closer to 2-3% rent to value. Am I not running the numbers correctly or not looking in the right neighborhoods to invest?

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SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
12y

You mentioned a $100k house in Mesquite renting for $1k,,I own rentals in Mesquite, and I don't buy at 100% of market,,I look for deals.

Most of my houses in the area I am into for about $80-85k, worth about $100k and rent for $1125-$1200,,,,i these aren't 100 year old houses you have in many areas, and my $80-85k includes a total rehab

The cash flow is good, normally about $350-400 per month/house, but the appreciation is great.

If you want to do 2-3% deals, go into bad areas (war zones), you can find those deals,,in nicer areas you won't find them (at least in DFW)

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  • Residential Real Estate Agent · Fort Worth, TX · Member since 2013 · 25 posts · 3 votes
    12y

    There are plenty of deals in this area however, I would say generally speaking that investment properties in DFW seem to sell at higher percentages in Dallas County vs Tarrant County. With that being said, DFW is a great market for investors, whether it be to flip a house or hold it and rent

  • Real Estate Investor · Jupiter, FL · Member since 2013 · 42 posts · 14 votes
    12y

    So can you get 2% deals in any areas near dallas?

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    12y
    Originally posted by Benjamin Kanevsky:
    So can you get 2% deals in any areas near dallas?

    Yes, in niches or towns within an hour of Dallas or Ft Worth.

  • Real Estate Investor · Jupiter, FL · Member since 2013 · 42 posts · 14 votes
    12y
    Originally posted by Jon Klaus:
    Originally posted by Benjamin Kanevsky:
    So can you get 2% deals in any areas near dallas?

    Yes, in niches or towns within an hour of Dallas or Ft Worth.

    Jon could you give me some zip codes that would fit that criteria?

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    12y

    Kaufman Crandall Scurry Quinlan Terrell are wher I have them. Just start doing searches 25-50 miles out. MLS to learn, but look for off market, too. Blue collar towns within a reasonable commute to DFW.

  • Investor · Rowlett, TX · Member since 2013 · 132 posts · 72 votes
    12y

    Definitely man...we've got a boom going on in a few cities surrounding the DFW area...Jon named many in the southeast and east areas out of DFW but there are many in the north as well...I'm seeing growth in the Anna's, Little Elm's, Van Alstyne areas north of DFW...This is one of the biggest cities for job growth...it's a great place to be! But at the same time you can find many great deals within the DFW...you just have to become a great gold miner..best of luck to ya

  • SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
    12y

    You mentioned a $100k house in Mesquite renting for $1k,,I own rentals in Mesquite, and I don't buy at 100% of market,,I look for deals.

    Most of my houses in the area I am into for about $80-85k, worth about $100k and rent for $1125-$1200,,,,i these aren't 100 year old houses you have in many areas, and my $80-85k includes a total rehab

    The cash flow is good, normally about $350-400 per month/house, but the appreciation is great.

    If you want to do 2-3% deals, go into bad areas (war zones), you can find those deals,,in nicer areas you won't find them (at least in DFW)

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