I am a real estate investor living in San Diego, and have so far invested locally in So Cal. I am considering investing out of state and looking into Texas (Dallas/FW, Austin, San Antonio, Houston) as a possible option. I would be interested in investing in Single Family homes, either to buy and hold for the long-term or fix-and-flip if that is an option.
Any pointers from folks who have invested in Texas as to how I can get started in my research? Any particular city would be a good investment option? Any guidance in this matter is greatly appreciated. Thanks!
I just bought my first 4 plex down in San Antonio. Dallas has gotten overheated in the last couple of years, and Austin is also getting pricey. San Antonio, though, still offers some decent cap rates both on SF homes and smaller multi-families. However, in the last 12 months the home inventory in San Antonio has shrunk and prices have appreciated like 7-8%, so that market is starting to move too. Don't know about Houston. Good luck.
If you are looking for fix and flip, any major market in Texas will do just fine. But keep in mind, as with any city some parts are better than others. May be a good idea to pick what price point you want to operate in and that will help steer you some.
If you are looking for buy and hold, its tough to go wrong with Dallas or Houston. Lots of great options out there in both markets. Just like before though, start your research with your investment goals in mind. Income, appreciation, ROI, and money available should all be laid out before you start investing.
DFW is super competitive, with extremely low inventory. However, there are areas of the DFW Metroplex that a screaming to be flipped. The demand for houses in those areas far outpaces inventory. Those same areas are not that great for buy & hold, because appreciation as destroyed your cap rates. The rental rates are simply not keeping pace. However, there are other areas of the Metroplex where buy & hold is still very strong, with quality schools and reasonably priced properties.
I've posted several threads analyzing specific areas of the Dallas/Ft Worth Metroplex and would be happy to discuss it with you, if you'd like.
The big 4 markets have just about overheated. San Antonio may have a little more room. If cash flow is your goal I would look at secondary markets. Corpus Christi is interesting to me given proximity to the shale play. I would also look at Del Rio and El Paso.
Personally, I really like the market and opportunities in Bryan/College Station. We're just a little north of Houston, so we get some overflow from there. Plus, we have A&M and Blinn here, so the student rental opportunities are excellent. Not to mention, that there are some great deals to be found.
@Andy K I live in Dallas which is a hot market right now. The suburbs in Plano, Frisco and The Colony are hot with Toyota and a few other companies putting their headquarters up there. As with most suburbs you get more square foot for the buck, newer homes and good schools. Perfect for the buy and hold type. Dallas metro particulary Uptown has more condos and townhomes that are currently appreciating very quickly. Anything east of highway 75 (M-streets, Greenville and Lakewood areas) are mostly older SFRS, but many have been remolded. There are only a few good schools in the Dallas school district so a lot of those home are more attractive to the dual income no kid families because they are closer to the life of the city. Its not unsual to see a 2 bedroom 1 bath home built in the 1920s or 1930s remodled of course go for $300K+ depending on location. Good luck and drop me a line if you need any help.
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