Rental Property Investor · North Andover, MA · Member since 2018 · 107 posts · 72 votes
I've been working with a lot of investors who were buying multifamilies for cashflow around the country. Memphis, Houston, Chattanooga, Tampa, Jacksonville, and Indianapolis have all been targeted, but the agents in Dallas seem to be the only ones who can find quality cash flowing properties. Is this because I just happen to know good agents in Dallas or is the market there just that much better than other cities?
Lender · TX · Member since 2018 · 936 posts · 713 votes
8y
@Patrick Hermans It is very, VERY hard to find cash flowing multi-families in Dallas and even harder to find cash flowing SFR outside of D neighborhoods. It got picked over from 2010 to 2015 and has been rough since. It didn't help that large companies are moving their HQs to the area (i.e. Toyota, AT&T, etc.). I think the Midwest is in a better position unless you already have some rentals in Dallas and want to keep them concentrated.
Lender · TX · Member since 2018 · 936 posts · 713 votes
8y
@Patrick Hermans It is very, VERY hard to find cash flowing multi-families in Dallas and even harder to find cash flowing SFR outside of D neighborhoods. It got picked over from 2010 to 2015 and has been rough since. It didn't help that large companies are moving their HQs to the area (i.e. Toyota, AT&T, etc.). I think the Midwest is in a better position unless you already have some rentals in Dallas and want to keep them concentrated.
Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
8y
@Patrick Hermans To @Ryan Blake point DFW is a hot market and cash flow is hard to find. Nonetheless, I've had a few friends who've been able to snag solid B-/C SFR properties that cash flow. Only problem: They barely cash flow to the tune of $50-150/month i.e. you're one bad incident away from wiping any returns.
These folks are richer and have multiple streams of income. As such, they are buying for capital appreciation and view this as a long-term play.
Midwest cash flows better but has abysmal capital appreciation. Maybe, I am biased but I would stick to primary and secondary markets as long as one is investing min. 5-7 years.
Real Estate Agent · Dallas, TX · Member since 2016 · 432 posts · 341 votes
8y
@Patrick Hermans it really depends on what you're looking for and what your long term goal is. For instance I just got a 1% MFH under contract on the MLS in an amazing area with great value add - granted I haven't seen something like that on the MLS for awhile - you just need to be aggressive. I had an offer in within an hour of it being listed.
Lender · TX · Member since 2018 · 936 posts · 713 votes
8y
@Matt K. Very true but if you live in state then you don't pay an income tax. That is what causes our property tax to be high. The state makes up for it in taxing properties at 2.25% - 3.5% of appraised value annually.