Getting ready to buy in Texas...

Buying & Selling Real Estate
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Getting ready to buy in Texas...

Justin Brophy
Brea, CA · Member since 2014 · 41 posts · 7 votes

Hello all,

I've done quite a bit of research, reading, and networking in regards to my first purchase.  I was originally leaning towards Las Vegas but have now decided it will be Texas or possibly Oklahoma.  I am looking for some input from investors in these states and any information or experiences would be appreciated. 

I am looking for a rental property, I will spend between around 115k-125k max, 3br/2ba (Not looking to do much rehab).  My criteria is a property with a decent cash flow and hopefully consistent appreciation.  I have been researching and hearing great things about the Dallas Fort Worth area.  Any investors have anymore areas specifically? 

Also, I will most likely be making a trip out to the area in a couple months to do my in person research on the different areas/neighborhoods and view the different properties.  Anybody with realtors who may be willing to show me around in Dallas Fort Worth or OKC when I make the trip?  Thanks in advance for your input.

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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y

You should speak with @Jon Klaus he is a very knowledgeable investor in the area and a friend of mine. He should be able to point you in the right direction.

You mentioned cash flow with appreciation, keep in mind you rebasing for everything and often times, good cash flow will not come with good appreciation and vice versa. Also, buying at around $120k will require you to be getting somewhere both of $1800 monthly in rent if you plan on having long term cash flow. That will be a stretch in TX this is a very competitive market right now with rents and occupancies at their peaks (or close to peaks) so you need to search hard and find a great deal to obtain the cash flow. Another option would be to go for multi family, you will find you will have better cash flow opportunities there, but don't expect a lot of appreciation.

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  • Christopher Tredennick
    Homeowner · Houston, TX · Member since 2013 · 9 posts · 0 votes
    12y

    Obviously, nothing in Spring is going to change overnight but if you are looking for a long-term hold you could see appreciation and desirability in 10-15 years.

    0Reply
  • Justin Brophy
    OP
    Brea, CA · Member since 2014 · 41 posts · 7 votes
    12y

    @Christopher Tredennick 

    @Jeff Wallace 

    From your points of view, Spring is not the "greatest area" at the moment?  If my target tenants would be a family; looking for good schools in the area, etc.  I am looking for something to buy and hold for at least 3-5 years and possibly help to boost my next property.  Are there any areas you guys suggest within Houston to look towards and/or stay away from?  Thanks again for your input.

    What about Dallas Fort Worth and Southwest Arlington?  Any suggestions?  Thanks again.

    0Reply
  • Hattie Dizmond
    Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
    12y

    @Sonny Ngo is very bullish on Houston, and with good reason.  However, the Dallas Metro area is leading the nation for job growth in large metro areas right now. 

    Not that I'm really trying to wrangle more out of state investors to the Dallas area.  We already have enough competition here!

    0Reply
  • Richard D.
    Investor · Fort Worth, TX · Member since 2013 · 309 posts · 150 votes
    12y

    @Justin Brophy I have off market property with little to no rehab, currently rented property available at $125,000 in the Saginaw area of DFW. This home is off the MLS because the owners want a quick sale, to get out and don't want to pay a realitor. They have moved to Parker County, and rented the property for their mortgage payments. Renters have 1 year left on lease. The property is a 2006 build, 3-2-2 1288 sq ft in Eagle Mountain-Saginaw ISD. The renters have a three year payment history. Message me for more details.

    0Reply
  • Sonny Ngo
    Involved In Real Estate · Houston, TX · Member since 2014 · 78 posts · 22 votes
    12y

    @Hattie Dizmond 

     I am trying to alleviate competition for you. :)  I agree Dallas has better job growth, but Houston is right behind you.  

    0Reply
  • Sonny Ngo
    Involved In Real Estate · Houston, TX · Member since 2014 · 78 posts · 22 votes
    12y

    @Justin Brophy 

    Hi Justin,  Spring is still a good area to invest.  It will become better next year.  I'd recommend to buy in Houston and hold it for a few years to see the appreciation.  Plus the real estate here is still quite affordable. 

    0Reply
  • Justin Brophy
    OP
    Brea, CA · Member since 2014 · 41 posts · 7 votes
    12y

    @Hattie Dizmond 

    Do you have any suggestions or contacts for agents in the DFW metro and/or Arlington area?  I will be making my trip out to Texas this October to conduct my in-person research of the neighborhoods and properties?  Thanks in advance. 

    0Reply
  • Justin Brophy
    OP
    Brea, CA · Member since 2014 · 41 posts · 7 votes
    12y

    @Richard D. 

    I would be interested checking out the property and the surrounding area.  Not sure if it will still be available as I won't be making the trip out from California until mid-October.  If it is still available, I'll definitely check it out. 

    0Reply
  • Jeff Wallace
    Rental Property Investor · The Woodlands, TX · Member since 2014 · 345 posts · 288 votes
    12y

    @Justin Brophy Spring is perfect for investment and an A+ community.... If you buy in the right area.

    But just buying in "Spring, TX" is a bit of a gamble .... You have to understand a few things about Houston area addresses. "Spring"covers a VERY large portion of land north of Houston, and includes three school districts. I live in the woodlands, but can use a spring address.... So, you are dealing with such a large area that is referred to as "spring" you have everything from low end cash flow properties in a poorly rated school (which is a very small pocket of spring) to top notch rentals in top rated schools.... And everything in between. The majority of the area fall within two of the best rated school districts in the Houston area..... And then consider that Spring is in two different counties with different property tax rates.... You have to understand the market differences in order to make the decision that best fits your goals.

    As for Dallas, I have no knowledge of areas to focus your attention, but I have a few friends who are doing really well.  The bottom line.... You won't be sorry if you choose to invest in Texas... And you will probably do well in about any city/town in Texas...

    0Reply
  • John Hamilton
    Real Estate Transaction Engineer · Jacksonville, FL · Member since 2014 · 271 posts · 74 votes
    12y

    Talk to Keller Williams. They usually work with investors, at least that has been my experience. Call a local office to the area you want to look, which is obviously the Dallas/Arlington area.

    Otherwise, local investors are your next choice. Spring is OK, but spotty like someone said. You''d have to spend some time to really understand the better investment areas for what you looking to get.

    0Reply
  • Christopher Tredennick
    Homeowner · Houston, TX · Member since 2013 · 9 posts · 0 votes
    12y

    Hey @Justin Brophy ,

    Note there is "Spring, TX" and "Spring ISD".  If your timeline is 3-5 years I would stay out of Spring ISD. There are other areas of Spring, TX that have good potential (ex. The Woodlands).  From what I've seen, Klein ISD still has a "halo effect" as far as desirability.  Cypress (the city and ISD) is an up-and-coming area that has big potential but it is a little far away from Exxon to see the "bump" from the new headquarters.

    0Reply
  • Shiloe B.
    Investor · Oakland, CA · Member since 2014 · 28 posts · 12 votes
    12y

    I like OKC. Very low barrier to entry and a healthy economy. There is a lot of retail growth, especially near downtown, and the historic neighborhoods have been steady for decades.

    0Reply
  • Scott Pigman
    Austin, TX · Member since 2014 · 139 posts · 89 votes
    12y

    Okay, I have to ask because it's been bugging me for awhile.

    ISD = ?

    "Integrated School District" is my best guess.

    0Reply
  • Justin Brophy
    OP
    Brea, CA · Member since 2014 · 41 posts · 7 votes
    12y

    @Christopher Tredennick 

    Can you help me understand what areas specifically encompass Spring ISD?  Sorry if this is a "basic" question in regards to the area.  Thanks for your input. 

    0Reply
  • David J.
    Investor · Houston, TX · Member since 2009 · 210 posts · 261 votes
    12y

    Independent School District.

    They are just trying to tell you waht school district the cities/neighborhoods are in.

    "Spring Independent School District" = Spring ISD

    Kien ISD, Conroe ISD, Cypress ISD.  Thats what they call them down here in the oil patch.

    0Reply
  • Justin Brophy
    OP
    Brea, CA · Member since 2014 · 41 posts · 7 votes
    12y

    @Shiloe B. 

    Thanks for the information in regards to OKC.  I will be making an in-person trip here in October to visit neighborhoods/areas/properties in both Houston and OKC.  Do you have any suggestions on which towns I should be checking out when I go to OKC?  Thanks.

    0Reply
  • David J.
    Investor · Houston, TX · Member since 2009 · 210 posts · 261 votes
    12y

    @Justin Brophy 

    Here is a link to the map of Spring ISD.

    http://www.springisd.org/docs2/publications/zonema...

    Klien borders to the west and conroe ISD borders to the north.  You can google any of them and they have maps.  All three school districts include parts of "Spring, TX"

    Good luck.  In my opinion, there are good investments in all three district.  You can made generalizations about all three, and I may or may not want my kids to go to any or all of the schools in each, but i can tell you I own great SFRs in all thee and I live in one of them.

    0Reply
  • Richard D.
    Investor · Fort Worth, TX · Member since 2013 · 309 posts · 150 votes
    12y
    Originally posted by @Scott Pigman:

    Okay, I have to ask because it's been bugging me for awhile.

    ISD = ?

    "Integrated School District" is my best guess.

     Close Scott, Independent School Districts. In Texas the schools are independent of the counties or other municipalities. You will find that in Texas school districts can encompass large areas or small. The smallest school district by area in the state sits in Fort Worth Texas, at just over 5 square miles. It has a larger student population than several school districts that have an area over 100 square miles.

    Besides, residents want more say on how school funds are spent.  That's why in Texas, I will always recommend parents to follow the money when it comes to schools.  It gives students better opportunities for extra curricular activities, scholarships, athletics, and in most cases (not all) academia.

    0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    12y

    okc metro is pretty large.  preferred school districts tend to be deer creek or edmond.  Moore is well liked but has a bad rep since the tornado for out of towners but locals still love it.  Lots of good areas though just really depends on the price you want to spend and how much you are wanting to get in return on your investment.  

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    0Reply
  • Justin Brophy
    OP
    Brea, CA · Member since 2014 · 41 posts · 7 votes
    12y

    @Rhett Tullis 

    Thanks for the information. Looking for a SFR 125k or less. I'm not expecting to get rich off cash flow each month but would like positive cash flow in an area with potential to gain appreciation. I plan on buying and holding this one for at least 3-5 years minimum. I have been checking out Moore and definitely like what I have seen thus far.

    0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    12y

    @Justin Brophy you will see some appreciate in okc but historically we are not known for that.  you will not however see any major drops in value either.  just stable growth.  If you are putting your money in for appreciation I think there are some other markets I may look at if you are wanting to see that growth in 3 to 5 years.  

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    0Reply
  • Justin Brophy
    OP
    Brea, CA · Member since 2014 · 41 posts · 7 votes
    12y

    @Rhett Tullis 

    Do you have any suggestions or contacts for agents in OKC?  My business partner and I would like to check out the different neighborhoods and properties in the area coming up here in October.  Thanks in advance. 

    0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    12y

    @Justin Brophy just sent you a msg, cant post that kind of stuff here from what im told.  let me know if i can help.

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    0Reply
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