So I have some good news! I have started to build my team and now have a great agent and lender I am working with! They have been super awesome and helpful along the way.
I have full confidence in my agent helping me find the right REI property that fits my budget and plan, however, it has been a struggle to actually find a decent property that have positive cash flow and c-o-c return. Has anyone else experienced this as well in the DFW market?
does anyone have any good recommendations for areas I should be narrowing my search down in? I am working with 60-90k as a downpayment, in a house at about 350k. I want the rent to at minimum coverage the PITI plus some but can't seem to find a solid lead yet.
Any suggestions would be greatly appreciated for this market.
Property Manager · Dallas/Ft. Worth · Member since 2024 · 70 posts · 32 votes
1y
Hi Carlos,
You're definitely not alone! Finding strong cash-flowing properties in the DFW market has become more challenging, especially with prices and interest rates where they are. A $60–90K down payment on a $350K property gives you some flexibility, but hitting solid cash flow in today’s market often requires doing more homework and looking in specific submarkets.
Have you narrowed down the type of property you're targeting, single-family, duplex, etc.? Also, what areas have you already explored?
You might want to consider looking in parts of Fort Worth, Garland, Saginaw, or even some areas east like Greenville or north around Denton or Sherman and Denison. These tend to have more decent price-to-rent ratios, especially for long-term rentals.
Hope this helps some, and wishing you success as you keep searching!
Property Manager · Dallas/Ft. Worth · Member since 2024 · 70 posts · 32 votes
1y
Hi Carlos,
You're definitely not alone! Finding strong cash-flowing properties in the DFW market has become more challenging, especially with prices and interest rates where they are. A $60–90K down payment on a $350K property gives you some flexibility, but hitting solid cash flow in today’s market often requires doing more homework and looking in specific submarkets.
Have you narrowed down the type of property you're targeting, single-family, duplex, etc.? Also, what areas have you already explored?
You might want to consider looking in parts of Fort Worth, Garland, Saginaw, or even some areas east like Greenville or north around Denton or Sherman and Denison. These tend to have more decent price-to-rent ratios, especially for long-term rentals.
Hope this helps some, and wishing you success as you keep searching!
I will talk with my agent and look to explore options in the Fort Worth area as well! We are currently looking at the North Arlington/Euless area, and into the NRH/Hurst areas too - we are strategizing central DFW area due to location and schooling for long term tenants, but nothing has panned out yet.
I am not exactly looking at Dallas proper - I am currently focused in the "HEB" area (Hurst, Euless, Bedford) / NRH North Arlington areas as the main focus as of today, but nothing has come up yet. Do you have experience in the broader DFW markets? Any tips or pointers would be greatly appreciated.
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
1y
Hello Carlos!
The only way I've seen this be possible is if you go to markets that are a bit outside of the metroplex. I have friends who have invested in Hillsboro, Crowley, and Bonham, among others, to generate cash flow due to the high prices in the DFW area. If you're looking at North Arlington, you can create cash flow by buying a property in the entertainment district and turning it into an STR/MTR because that's the only area it's zoned for, so the laws work in your favor.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
1y
You may have to switch up strategy a bit. Either put more down like 30-40% to cashflow or do something like rent by the room. That's probably what is working in the better areas right now in DFW market. Rent just hasn't kept up with asset/home prices. We should start to see some rent growth in 2H of the year as we burn off some of the new construction apartments. Too many built or finished in the last year. That comes to a screeching halt for the most part this year. Then we should be set up well for rent growth I think over the next 3-5 years.