Moving to the Dallas area next year - thoughts on multi-family

Dallas, Texas
Buying & Selling Real Estate
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Moving to the Dallas area next year - thoughts on multi-family

Orlando Chavez
Member since 2024 · 5 posts · 11 votes

Hello all. I am just starting to learn about real estate investing and trying to learn as much as I can about the Dallas market (and suburbs). I’ve heard it’s not as great compared to pre-pandemic but would like to get some thoughts from local investors, agents, lenders. I’ve sort of been looking on Zillow and Redfin for 2 to 4 units properties. Just running the numbers based on Zillow and Redfin prices, comparing rents to similar properties, and assuming I pay the asking price (no negotiations, 20% down), it looks like it’s hard to be profitable. My goal is good positive cash flow.  Again I am just getting started so I have lots to learn especially in a new market. Thanks for your feedback. 

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Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
1y

@Orlando Chavez — welcome to the DFW market! You're right that cap rates on multi-family (especially 2–4 unit) properties aren't what they used to be pre-pandemic, but opportunity still exists with the right strategy.

A few thoughts from someone who's managed a large number of rentals in the Dallas area since 2002:

  1. Cash flow is tight on MLS deals unless there's value-add upside. You'll rarely find good cash-on-cash returns without factoring in either under-market rents or poor condition properties needing rehab. Many of our clients built strong portfolios using hard money loans to acquire and rehab, then refi into DSCR or conventional financing.

  2. Consider the suburbs too. Places like Garland, Mesquite, and parts of Fort Worth may offer better rent-to-price ratios than central Dallas. Some of our best landlord clients started there.

  3. Make sure you’re factoring in full expenses — insurance, maintenance reserves, vacancy, management (even if you self-manage), and property taxes, which can climb fast in Texas. We’ve seen many DIY spreadsheets underestimate these and get burned.

  4. Use professionals. Lenders like @Andrew Postell and insurance agents like @Cameron Moore at ProCo know what real estate investors need. You’ll save money (and stress) long term by doing it right.

  5. Delayed gratification is your best friend. Most landlords struggle early on, but if you stick with it and use tax tools like the 1031 exchange, the long-term payoff is real.

Glad you’re doing your homework. That alone puts you ahead of most. Keep going and feel free to reach out to local investor meetups or networking groups — DFW has a strong investor community.

McCaw Property Management4.4900 Reviews
WebsiteView Page
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  • Drago Stanimirovic
    New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 478 votes
    1y

    Orlando, you’re on the right track, Dallas is still strong long-term, but cash flow is tighter now due to higher prices and rates. Multifamily (2–4 units) is a solid entry, but you’ll need to dig into submarkets some suburbs or zip codes will perform much better than others.

    Don't rely on asking prices alone as many deals need negotiation or value-add to pencil out. Also, consider creative financing like DSCR loans or seller credits to boost cash flow.

    1Reply
  • Diego AlvaradoBusiness Member
    Real Estate Agent · Flower Mound, TX · Member since 2016 · 298 posts · 140 votes
    1y

    Hi @Orlando Chavez

    It is tough to get cash flow in DFW. It will all depend on the areas that you want to live too.

    DFW has some areas that could be a break-even cashflow in Fort Worth and Haltom city, or you will need to move more to rural cities that could get a better cashflow.

    The best cities in DFW are mainly for appreciation and long-term assets, and in may cases you won't be able to find 2-4plexes on those areas, most of the duplexes are subdivided so you get half of it for the price.

    [email protected]214-833-8911
    Alvarado Realty Group522 Reviews
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    1Reply
  • Orlando Chavez
    OP
    Member since 2024 · 5 posts · 11 votes
    1y

    thanks to both. Yes that's what I am finding out, cash flow could be tights. @Diego Alvarado Just doing some brief research it looks like single family homes can also be tough to cashflow. We'll be moving to Denton, ideally we would want to invest nearby but it would be tougher there. 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Orlando Chavez

    You're absolutely right—post-pandemic pricing in the Dallas and DFW suburbs has made cash flow a bit tighter, especially on 2–4 unit properties. That said, there are still pockets with solid returns if you know where to look and are willing to negotiate or add value. Many investors now focus on "value-add" deals where light rehab or better management boosts rental income. Also, off-market deals or working with agents can help you avoid overpaying. DM me and I’ll point you in the right direction with local resources and markets worth watching.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
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    0Reply
  • Terrance Teague
    Property Manager · Dallas/Ft. Worth · Member since 2024 · 70 posts · 32 votes
    1y

    Hey Orlando!

    You're absolutely right, finding strong cash flow deals in the DFW area is definitely more challenging than it was pre-pandemic. 

    It's more of a challenge, but it's not impossible. We work with several investors who are still finding good cash-flowing properties in DFW, both in Dallas and in surrounding sub-markets. The key is doing your homework, and most importantly, having the right team in place (agent, lender, mentor, etc.) who understands the local market and have good investment strategies.

    You're already on the right track, keep at it, and have fun with it.

    0Reply
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    1y

    HI @Orlando Chavez

    like you said unless you have 20% down or more you won't be cash flowing in this market. its just not the same as it used to be. 

    [email protected]817-480-9452
    United Real Estate DFW Properties 565 Reviews
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    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    1y

    Most of what I see for MF you will need 30-40% down to cash flow right now.  That also provides a comfortable safety margin.

    Rents should take off again once we get all the new build apartments leased up.

    0Reply
  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    1y

    @Orlando Chavez — welcome to the DFW market! You're right that cap rates on multi-family (especially 2–4 unit) properties aren't what they used to be pre-pandemic, but opportunity still exists with the right strategy.

    A few thoughts from someone who's managed a large number of rentals in the Dallas area since 2002:

    1. Cash flow is tight on MLS deals unless there's value-add upside. You'll rarely find good cash-on-cash returns without factoring in either under-market rents or poor condition properties needing rehab. Many of our clients built strong portfolios using hard money loans to acquire and rehab, then refi into DSCR or conventional financing.

    2. Consider the suburbs too. Places like Garland, Mesquite, and parts of Fort Worth may offer better rent-to-price ratios than central Dallas. Some of our best landlord clients started there.

    3. Make sure you’re factoring in full expenses — insurance, maintenance reserves, vacancy, management (even if you self-manage), and property taxes, which can climb fast in Texas. We’ve seen many DIY spreadsheets underestimate these and get burned.

    4. Use professionals. Lenders like @Andrew Postell and insurance agents like @Cameron Moore at ProCo know what real estate investors need. You’ll save money (and stress) long term by doing it right.

    5. Delayed gratification is your best friend. Most landlords struggle early on, but if you stick with it and use tax tools like the 1031 exchange, the long-term payoff is real.

    Glad you’re doing your homework. That alone puts you ahead of most. Keep going and feel free to reach out to local investor meetups or networking groups — DFW has a strong investor community.

    McCaw Property Management4.4900 Reviews
    WebsiteView Page
    2Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    Kansas City Market can handle 25% down in class B areas, similar in class C areas. Not nearly as big nor the growth opporunity but thought I would pop my 2 cents in here as a comparison. 

    0Reply
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