What is the best overall suburb in Dallas to invest in?

15 Replies

Dear All,

I am looking at buying a property in Dallas TX. 

What is your opinion on which suburb would be the best one to invest in?

Criteria are:

-Long term buy and hold

-$200-260K

-Return of 6%+ ROI rent (annual rent divided by property purchase price)

-Stable capital gain

-Low crime

-Low vacancy rate

-Will consider single family home or multifamily home

-Nice to live in ? Easy to resell?

Thanks in advance!

Hi Stephen. I grew up in Dallas, but I currently live in the northern suburbs. In my humble opinion, I would look to the North if you want to check off as much criteria as possible. Cities like McKinney, Frisco, Little Elm, Allen, etc fit within your expectations and are highly desirable. I know everyone says this, but it's an extremely competitive market. Let me know if I can be of assistance!

@Michael Biggs while collin county is great, prices are high and lots of people have hard time renting out due to new apartment supply coming online. My recommendation is to invest in Tarrant county.

@Stephen Green Did you really mean 6% ROI defined as annual rent divided by purchase price? That is $1000 in monthly rent on a $200,000 property. After factoring in 50% expenses, you are looking at the 0.5% rule. Or roughly a 3% cash on cash return. You would have to pay cash, as any leverage would send you into the red every month.

If that's truly your criteria, you could buy pretty much anywhere in Dallas and hit those numbers. For long term capital appreciation, I would look at northern suburbs - Frisco, Allen, McKinney, even Far North Dallas, etc. - along the path of progress.

@Eric Aello & @Account Closed I appreciate your thoughtful response. I did mean 6%+, its a case of the more the better of course (as long as major downsides werent introduced) and better returns suburbs would be weighted higher. 

The suburb reviews ive done so far seem to be around max 8% rent ROI (annual rent/purchase). For a 1% rule or close to (12% rent ROI), im assuming I would have to be looking at minimum duplex style multi family property? Or are there other suburbs (or methods) where you see this achievable without any major downsides introduced?

@Stephen Green I see a lot of people pushing North DFW but personally (my investments) and properties that I've helped my clients acquire and mange over the last 8 years, we've had tremendous success in Grand Prairie, Mansfield, and Arlington (South side). You get more house for your money, rents are decent and given the expansion of highway 360/tollway they are certainly anticipating lots of growth. Plus the schools are considered good and it's central between Dallas and Fort Worth so folks that work in either city would be open to properties in those cities.  Feel free to private message me if you'd like to chat more. 

@Courtney King , I am agree with you. It is impossible to get breakeven in north DFW now a days.

I prefer Grand Prairie, Mansfield, Arlington, Crowley, Burleson area to invest.

Can you please add me in your client distribution list, I am looking for properties in same area.

I'd look outside the Dallas loop.  Right now those are so expensive, that you'll have a hard time cashflowing.  The edges have the best capital-appreciation opportunities as well as cashflow.  You may look at Burleson, Cleburne, Weatherford, and South Fort Worth.  You can cashflow and these still have a lot of upside potential for the market. 

I have a few things available from my flips.  Call me if your'e interested.  

Everywhere - depending on your criteria. You did give criteria, but I think its too vague. That is easily accomplished with some patience and persistence. You can get great return - 1% deals or massive appreciation in many of the areas. The really nice areas - North - will give you great appreciation but not much on the rents. The other areas will both appreciate and cashflow.  Schwab is moving 3800 jobs to Southlake. Fort Worth is hot as is Garland and some areas of downtown and South Dallas.  You need a local realtor with boots on the ground and get super specific with your criteria.