Is McAllen Texas a right place for investment?

Buying & Selling Real Estate
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Is McAllen Texas a right place for investment?

Farzan Setayesh
Rental Property Investor · San Diego, CA · Member since 2017 · 86 posts · 14 votes

I read on National *** of Investor that McAllen Texas is on of top 20 places to invest in 2020? Do you know the area? And why it has so much potential?

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Art Perkitny
Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
6y

@Farzan Setayesh

@Farzan Setayesh

Not a local investor, but here is a data driven look at the market conditions in McAllen Texas

Two of the most important market performance indicators, population and median home values, have been increasing steadily for the past decade   

Rents have followed a similar trend 

The chart to the right shows median household incomes over time, which have also been increasing. 

Lastly, education rates are up somewhat since 2010 while poverty rates are down.

SNAPs (supplemental nutrition assistance program) rate is up a bit however. 

All in all, the data seems to agree with what you read. The key performance indicators suggest that this is a good growth market with a lot of future potential. 

Hope this helps! 

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  • Brian SimpsonPro Member
    Grandview, TX · Member since 2017 · 143 posts · 79 votes
    6y

    I do and I can say it has great potential for new construction and existing properties. I have had some properties there for past 7 years and I'm getting better returns than any of my properties in DFW, Tampa or anywhere else I have similar properties. It is a totally different market in many instances with regard to how you do business there but it's worth a hard look in my opinion if you're serious about SFR.

    1Reply
  • Farzan Setayesh
    OP
    Rental Property Investor · San Diego, CA · Member since 2017 · 86 posts · 14 votes
    6y

    @Brian Simpson glad you are local... can you please explain what are the reasons for growth?

    0Reply
  • Art Perkitny
    Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
    6y

    @Farzan Setayesh

    @Farzan Setayesh

    Not a local investor, but here is a data driven look at the market conditions in McAllen Texas

    Two of the most important market performance indicators, population and median home values, have been increasing steadily for the past decade   

    Rents have followed a similar trend 

    The chart to the right shows median household incomes over time, which have also been increasing. 

    Lastly, education rates are up somewhat since 2010 while poverty rates are down.

    SNAPs (supplemental nutrition assistance program) rate is up a bit however. 

    All in all, the data seems to agree with what you read. The key performance indicators suggest that this is a good growth market with a lot of future potential. 

    Hope this helps! 

    5Reply
  • Farzan Setayesh
    OP
    Rental Property Investor · San Diego, CA · Member since 2017 · 86 posts · 14 votes
    6y

    @Art Perkitny thank you so much... can you do the same search for Huntsville and Kansas City Kansas?

    0Reply
  • Oren Kachel
    Member since 2019 · 140 posts · 24 votes
    6y

    Hey
    anybody know why Mcallen is growing?

    1Reply
  • Jake F.
    South Padre Island, TX · Member since 2018 · 81 posts · 69 votes
    6y

    @Oren Kachel  We're getting growth due to increased cross-border trade, some oil money, as well as the general growth that Texas is seeing as a whole. It seems like we're getting more Mexican nationals moving in who are looking for a safe place to park their money. All this is anecdotal and not based on any research I've read. McAllen is literally the cheapest place to live in America, so that doesn't hurt when trying to attract new folks to move here...

    2Reply
  • Oren Kachel
    Member since 2019 · 140 posts · 24 votes
    6y

    the Mexican nationals have an us citizenship? if they do, im guessing they will want to keep the credit score more than others? (or did I got it upside down? (im not from the US)

    0Reply
  • Jake F.
    South Padre Island, TX · Member since 2018 · 81 posts · 69 votes
    6y

    The Rio Grande Valley is about 90% Hispanic, and a portion do have dual citizenship. However most who live here are US citizens and have been for generations, although there are a number with Mexican citizenship and legal residency in the US. There is a sizable number of well-to-do folks coming over from Mexico and buying second homes or investment properties in the area. 

    2Reply
  • Brian SimpsonPro Member
    Grandview, TX · Member since 2017 · 143 posts · 79 votes
    6y
    Originally posted by @Farzan Setayesh:

    @Brian Simpson glad you are local... can you please explain what are the reasons for growth?

    Sorry it took so long for me to respond but I think they nailed down most of the reasons already. I would only add its heating up and there are several developments going in. Costs to live to build and to purchase are all cheaper here but for me it's about risk/return and cashflow. I am too small to make a big mistake and the numbers here make that much harder.  Please note investments here are different and rehabs are very different. It's not unusual to find 2x4 rafters or 40 amp service above the kitchen sink etc.  You got to be here to do it right or know your team here is watching it all everyday. 

    0Reply
  • Rob White
    Makawao, HI · Member since 2013 · 25 posts · 10 votes
    3y

    The cash flow in the McAllen area looks promising, and there seems to be a lot of multi family units for sale (not sure if that’s a good or bad sign). Are there any specific areas within the McAllen that are better than others as far B grade neighborhoods with good cash flow? Additionally, does anyone have a property management recommendation for the area?

    2Reply
  • Mark Lewis
    Investor · Member since 2018 · 32 posts · 14 votes
    3y

    @Rob White I invest in McAllen, TX. Anything north of Highway 83 seems to be decent. Some areas of Pharr as well as Edinburg and Mission that border close to McAllen are great. I have a solid realtor who manages for me. I will DM you her contact. 

    2Reply
  • Jose RodriguezPro Member
    Investor · Dallas, TX · Member since 2018 · 7 posts · 8 votes
    3y
    Quote from @Mark Lewis:

    @Rob White I invest in McAllen, TX. Anything north of Highway 83 seems to be decent. Some areas of Pharr as well as Edinburg and Mission that border close to McAllen are great. I have a solid realtor who manages for me. I will DM you her contact. 

     @Mark Lewis, thanks for sharing, can you send contact info my way? Thanks! 

    703-595-9482
    0Reply
  • Vikas Na
    Member since 2023 · 2 posts · 1 vote
    2y

    @Mark Lewis Could you share your realtor’s details? I am in a dilemma if I should invest in a 4plex or single family in Tres Lagos community. Any help would be greatly appreciated. 

    0Reply
  • Koteswara Rao Kambampati
    Member since 2024 · 1 post · 0 votes
    2y

    @Mark Lewis

    Can you please send me your realtor info? Thank you.

    0Reply
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