Hello BP Members,
I am reaching out to my fellow Members investing in the Amarillo, Texas area. I am in San Diego and looking at the OKC and now Amarillo markets. How is the rental market currently in the city for SFR? Looking to connect with someone who is investing there now and has a good pulse on how the city is doing as a whole. Thanks for reading and any of your time in advance.
bunch of Amarillo people on here I’m sure many will chime in.
Couple questions that might help you get some good replies, what’s your target price point? What do you want/expect to pay for houses, what do you want/expect to get for rent? What’s your long term goal for these?
Taxes and insurance are super high. With the exception of very recently possibly, there’s not much appreciation, but there’s also no declines. It’s just small steady increase in values generally. We don’t balloon up but we also have yet to ever really go down in the past 15 or so years I’ve paid attention.
Your properties aren’t going to appreciate a bunch, and I’d look to other markets if that’s your end goal, however there’s a steady rental market in the area that is strong.
Thanks @Scott R. for the response. I am looking for 80-100k to rehab then refinance in B to C+ neighborhoods (If that exists there). I am a buy and hold for cash flow long term. I did not know about the high taxes and insurance as I only started looking today so I will be researching that. Thanks for your response.
imo $100k properties in Amarillo that your buying at a discount if they need some rehab is almost touching class a properties in amarillo, the reason they prob wouldn’t be considered class a would be the age, but solid b+ stuff in that range. While they’re not “readily available” they come up often. I don’t know how to tag someone on BP but I’d search out a guy by the name of Tony Link. I think that’s about his exact price range he invest in.
I’d say in that’s price range, 80-100+ some rehab your prob looking at 100-150k tax valued properties your prob looking at 2500-3000/yr in taxes. Even 25k properties in amarillo are often 700-800+ in taxes.
Scott knows what he is talking about.
If it was me looking in that price range I’d look south of i40 and east of i27. There’s some exceptions to this but that’s a general good rule for this price range houses, the further south/west you go generally the higher/newer they get.
Western plateau, ridgecrest, Olsen and possibly paramount neighborhoods all come to mind. First two seem to retail at about $90/sqft and second two slightly lower, second two have bigger price swings across the neighborhood, but you should be buying at a discount and not paying these prices. Seems to be a lot of out of state investors buying and holding in a newer neighborhood “tradewinds square” it’s not quite in that area I mentioned, it’s kinda in a weird spot, but it seems out of town investors often like newer rentals and these are cheap for new stuff in a decent area.
Stuff is just now coming down off it’s super hot and everything selling at all time highs.. market is still strong, just not “back to school strong” as not everyone is trying to move before school starts any longer.
Neighborhoods are 50ish years old and there’s huge difference between just houses next door sometimes, neighborhoods also prone to sewer leaks under the slab. Lots of soil movement around here.
I’d say $1100-1300 prob average rents for these areas.
Good info, Scott. I agree with everything you're saying. Jeffrey just message me if you have any more questions, thanks.
You can pick up Tradewinds proper for the $100k mark too if you keep an eye out, though they've been higher recently. They're newer(ish) houses. I think mine over there was built in 2004.
You might shoot a little lower, though. Southlawn, Oakdale, Lawndale all are solid rental neighborhoods, that are generally $65k-$90k and you can rent them for a higher return than the nicer neighborhoods. Tenants are a little more trouble, but generally pretty good all in all.
Thank you for all the input. Saved me some time with this great info. Going to dig in and look at numbers now. If ever in San Diego let me know. Coffee/beer on me. Thanks again and Ill be in touch.
I'm interested in the market as well does anyone have any suggestions for good real estate agents and property managers for an out-of-state investor? Focused on Class b-c properties both multis and SFHs.
My husband and I are from Amarillo, Tx living in Redmond, Wa. We sold a house there in Amarillo a couple of years ago and had an amazing real estate agent, Tim Soto at Keller Williams. We were trying to avoid using an agent at that point but Tim was amazing! I don't have any suggestions for property managers. Good luck with your investing!