Rental Property Investor · San Diego, CA · Member since 2014 · 80 posts · 44 votes
I have been giving over 10 offer in the past 30 days for SFR in Plano, Allen, Frisco. I paid all cash, 2 weeks to close with short option period at either full price or higher than listing price. One house I even gave offer 10K higher than listing price but still all my offers are rejected. I wonder if anyone is on the same boat... Not sure how I can win an offer in such a crazy market. Any idea?
Contractor · Cleveland, OH · Member since 2014 · 317 posts · 181 votes
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I am moving to Houston this summer. I know that market is hot, just like Dallas is. I actually have an aunt that lives in Frisco @Wai Chan. What are most of the investor teams out in Dallas like, large? Well-managed & small? Are there any cities on the outskirts that are starting to gain value because the city has expanded so much? I am kind of trying to network w other investors in TX (I lived in Houston 2010-2013) and am moving back.
Real Estate Agent · Allen, TX · Member since 2015 · 106 posts · 13 votes
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I bought a house in allen last month. Had to bid 20k over asking price to win ONE bid. I lost all the other ones. When I bid on my house that day, I also bid another house that was 20k over the asking price. I end up losing that one. From experience, I think you will need to bid 15 to 20k over asking price in plano, allen area to win. I know the market is crazy. From just spectating, I know frisco is worst. I was so fed up with bidding on house, I planned to rent as my plan B.
Contractor · Cleveland, OH · Member since 2014 · 317 posts · 181 votes
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I am moving to Houston this summer. I know that market is hot, just like Dallas is. I actually have an aunt that lives in Frisco @Wai Chan. What are most of the investor teams out in Dallas like, large? Well-managed & small? Are there any cities on the outskirts that are starting to gain value because the city has expanded so much? I am kind of trying to network w other investors in TX (I lived in Houston 2010-2013) and am moving back.
Investor · Frisco, TX · Member since 2015 · 9 posts · 3 votes
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@Wai Chan -- I'm in almost the same boat. Have been looking at SFRs in Frisco (where I live), Little Elm, The Colony and McKinney for over 2 months. Probably looked at over 40 properties. Made offers on 3 houses (one I even offered on twice after their first deal went through). I am not offering all cash but I did offer over list more than once. Only got 1 and had to terminate because it was supposed to be fully rehabbed and it was not. My agent says that there is just so little inventory under $200k here that everything goes in literally hours. And of course, everyone is hoping to cash in on the Toyota/LIberty Mutual influx. I am extremely frustrated too. Might try a different part town til things settle down. If anyone has good advice on this areas, I'm all ears too.
Rental Property Investor · San Diego, CA · Member since 2014 · 80 posts · 44 votes
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@Gary WongYes I am looking for other area as well. I am buying in Cedar Hill as well. Looks like it is less competitive but the rental return and rental demand is just as good as North Dallas. Of course the resale and future is not as good as Plano, Allen ,Frisco. I don't have crystal ball so if current return is good I will invest now.
tampa, FL · Member since 2014 · 86 posts · 23 votes
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Its all about the numbers. If you cant make the numbers work with your current market, either pick a different market or wait it out until the market slows down.
Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
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It is pretty crazy out there. North TX in general had a 2.7 month supply in March 2015, with a lot of those North Dallas markets showing 1 month supply or less!
Residential Mortgage Specialist · Dallas, TX · Member since 2014 · 18 posts · 3 votes
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It's pretty rough in Frisco/Plano area because of the Liberty Mutual and Toyota headquarters going in shortly as @KimAnello was saying. I had to move further west towards Carrollton/Lewisville area or east Plano specifically east of 75. The prices are a bit better however the quality of the homes reflect those prices. Both Carrollton and east Plano are situated on major highways and will most likely experience improvement as people moving to Dallas run into the same situation you are in however, I am just speculating. You definitely want to do the research and decide for yourself. Hopefully this gives you a little direction as to what to research. Good luck!
Plano, TX · Member since 2015 · 17 posts · 7 votes
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@Wai Chan@Kim Annelloanybody looking further north in Savannah and CroasRoads? I have not done a lot of research but I know for a fact there are decent condition properties in the $150k-$175k range. Rents are probably lower though. For example, one of the wholesalers sent me this 3 bed 2 bath 1,800 sq foot in CrossRoads,TX asking $131k and currently rented out for $1,300/month through 2016. Needs 3-5k for new paint/carpet and nothing more (according to him). Wasnt much of deal for flipping (I don't buy his ARV) but may be worth considering for buy-and-hold.
I know a few people who have buy-and-hold properties in Savannah with a pretty good return, but they got those in 2013.
Residential Real Estate Broker · Richardson, TX · Member since 2015 · 1 post · 1 vote
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Newbie here. I am in the same boat. The Dallas market is on fire right now especially with all the activity taking place further north. I think there are still some opportunities in Richardson and Farmers Branch with the new State Farm development and Valley View Project. I am looking to get into some multi-family between 10-20 units but may have to search further north or east.
Investor · Frisco, TX · Member since 2014 · 76 posts · 18 votes
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I'm simply waiting it out. Throwing $20K+ above asking price just doesn't make sense for me. I predict the market will be on fire for quite some time though.
Investor · Oceanside, CA · Member since 2014 · 54 posts · 12 votes
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Hello,
I was born and raised in The Colony area and purchased a rental there last year. Definitely paid a little over asking but only a few K. Paid $131 and it appraises at $142k based on the recent comps.
I heard they were building the cowboys training camp north of Frisco towards hwy 380 and Dallas North Toll? If that's the case I'd assume anything off hwy 380 should be a good deal moving forward for a buy and hold...
Also, the Lake Dallas/Corinth area might be worth a shot as well. They are expanding Interstate 35 up to there and they already have a stop for the rail transit system to Dallas.
Attorney · Roanoke, TX · Member since 2010 · 29 posts · 13 votes
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We just closed on a condo in Saginaw and have seen inventory shrink considerably over the last 6-8 months (started investing in late 2012). Lots of competition out there but rental demand is up in basically all areas. Focus for us has been Garland and Mesquite but also Fort Worth. We look in the 100-140k range and have been able to get rents at around 1.25% of PP. We're looking to do at least one more deal this year but may have to sit on the sidelines if this continues. Intersting thing is that we've seen appreciation on all of our properties. Has hurt our deal searching but given us some additional equity. Hang in there fellow DFW investors. Hopefully the cheap money stays around for a bit longer.
If you are a cash buyer I would recommend attending Trustee Sales just make sure you do your due diligence before bidding.
A good friend of mine was looking for her first house in that area and she was bidding $30K over asking and still getting outbid. She finally got one under contract primarily because she knew the seller's mother.