In looking to begin my buy & hold investment portfolio locally in the Dallas/ Fort Worth Market, I've narrowed in on several townships west of Dallas to look for distressed, single-family properties: Hurst, Euless, Bedford, Arlington, and Burleson

Ideally, looking to find investments with a 10%+ cash on cash return. With this in mind, Does anyone have additional recommendations of towns to take a look at in DFW?

Matt 

North ftw sir and frisco area off 380 

@Matt Heidenfelder , the first question you need to ask yourself is why those properties get a 10% coc return.

The answer:  risk.  The risk of you getting paid and your place not being turned into a crack den is why such a high return is warranted.

I’d look at Frisco, Richardson, Plano if this is your first rodeo.  Nice easy area to pm, consistent returns.

Good luck!

Hi Matt, I work with many investors locally and many are buying in towns like Grand Prairie, Cedar Hill, Duncanville, and Desoto for rentals and most are getting a 10% return.. some are turn key and already providing 8-9% coc return and almost all are under $150k so it gives an option to purchase more properties.  

@Alan Grobmeier appreciation your insight. Yes this would be my first go around so you make a really valid point to search in areas that have provided consistent return. Thanks again

@Matt Heidenfelder

Hey Matt, I live in Arlington and did a flip in Dallas and am in escrow on my current flip I did in Bedford. I would personally disagree with buying in Frisco or plano those are very expensive markets. I'm no expert. I moved here from Cali 2 years ago looking at Arlington 2 years ago there were dozens of houses under 100k plenty 60k 70k 3/2 to choose from now look at it the cheapest 3/2 is 130k at least! I even put an offer on the last 80k property I saw here in June, got out bid and that house was flipped for 170k. Even my neighbors house was for sale for 78k a year ago I put the Arv at 140 someone flipped it in a month listed for 160 got too many offers pulled the listing and ended up getting 178k 3 DOM. I think you're right on with HEB ( my flip sold 300k 2 DOM) Arlington grand prarie are great appreciation...and south Dallas if you're feeling ballsy !

PM me and we can sit down if you want .

@Alan Grobmeier what are you talking about I’ve lived here 6yrs & seen plenty increase in my area ftw to Irving west of Dallas sir, no Matter the neighbor!!!

If you want a big return on me I have a few investment idea that spark 10+%....

@Matt Heidenfelder Hi Matt, I’d say overall those are solid rental markets with a ton of blue collar workers. Personally, I prefer a better tenant pool such as young professionals and more financially stable families to reduce vacancy, so I personally invest in areas towards the North Dallas area and Collins county. There’s also a lot of competition in that area for rentals as lower cost of entry for investors so you, I always see a ton of homes for rent in that area, just something to think about.

Cash on cash return is still extremely solid in North Dallas cities, and a ton of more commercial development activity is happening in this part of town in DFW such as office, retail, residential, and hospitality. Not counting on appreciation, but it’s certainly happening. Not as much development activity in the mid cities that you listed compared to this area. I personally track exactly where employers and private equity firms are investing in Dallas and I am purchasing as close to these areas that are still affordable now, but won’t be for too much longer.

Hope this helps.

@Phillip Collie , this is @Matt Heidenfelder first investment.  I’d want a property that is as close to 100% success as possible.  Wouldn’t you?  
If he ends up with a crack den (worst case scenario), he will lose a ton of cash & may never invest in real estate again.  A safe B/A property would be best for a noobie over a C/D w coc of 10%.  You gotta walk before you run!

Why do you degrade places but calling them crack den, it’s bad places everywhere what makes where you stay different???? 
tour mindset is all bad, I’ve seen the worst places become a work of art!!!

@Phillip Collie , that is truly a worst case scenario, other than perhaps a meth lab.

C/D class is fraught with issues that can turn off a noobie/first time investor.  I’d like to see @Matt Heidenfelder have some success before he figures out that ppl lie, cheat & steal.  ;-)

Can you make money in C/D class?  Hell yes!  But it’s not for the faint of heart.  And it should not be a persons first investment!

@Alan Grobmeier true but I'm more into MH investing so it's a little different the SFH

@Jorge Gonzalez that's a great thought focusing up north a bit! My only concern is that the BRRRR strategy wouldn't necessarily work in that area due to home prices. Have you by chance had success with this particular strategy?

@Matt Heidenfelder , you really need to put some pen & paper to brrr.  It sounds great, just like the pet rock when I was a kid.  But, you need to see if you are really coming out ahead.

Renovations, from my own experience, never go as planned.  They cost more in time & money than budgeted.  Stuff happens.  It just does.

Plus, if you’re buying for location, brrr might not be an option.

You might be better off going with a rent ready unit vs brrr.

My .02

@Alan Grobmeier definitely understand with regards to the unknown of rehabs. The other appeal to a process like BRRRR however is the ability to invest with minimal money on my end. Do you have any recommendations on financing options if i were to pursue a rent ready SFH? Just curious. Thank you!

@Matt Heidenfelder , all I’ve done is conventional loans, or used my va & rented behind me when I moved.

Some ppl buy a property as a residence with the full intention of moving out in a year and buying another.  They then rinse/repeat. Better loan percentage, but you could have to pay PMi if under 20% down.

@Alan Grobmeier yeah that’s been an issue I’ve been researching is that the majority of banks will not allow you to put less than 20% down on an investment property unless you were planning to reside there for some time as you had mentioned. I was hoping to avoid that but something I’ll certainly consider. I do agree there is obviously less risk in purchasing a turn key property versus distressed especially as a new investor.

@Matt Heidenfelder if you find properties giving 10% COCR, please let me know. I just sold two properties in Arlington which were supposed to give 10% COCR. After going through replacing appliances, floor, water heater etc. I barely made 5%. DFW market has already gone up significantly so run when you see 10% COC.

If you can get near any of the universities in the 150k-250k range depending on beds/baths, then you can rent out to college kids. I grew up in Arlington and Grand Prairie, and have a house near where 820 meets 30 in East Fort Worth. We have a SFH set up like a duplex and are about 10 minutes from Texas Wesleyan and rent out the rooms to college kids and young adults and are getting close to 1% WHILE my mom lives in one side rent free. It's doable.

@Justin Lanciault I stay down the street I’m west ftw off i30, cool stuff I want a duplex for my passive income 

Matt and @DustinMathenia y'all want to meet for coffee next week?

Realtor in HEB (Hurst-Euless-Bedford), work with several wholesalers and investors in the area.
Renovating my first DFW rental right now, will refi out in mid December, already have tenant, and will have $0 invested in the deal and cash flow $450+ after refi.

Would be great to meet y'all and see how we can help each other.

Haven't figured out how to tag people yet...

@Robert Miller @Dustin Mathenia I’d definitely be open to meeting up for a coffee and chatting more! Sounds like a great idea.

@Matt Heidenfelder

Yea I'm down any time let me know

This is an old thread but curious where you ended up investing @Matt Heidenfelder ?