I am looking to buy a rental property in Denton, TX around this summer probably. I didn't do a ton of a research, but I heard from several different agents from Texas, and people that Denton would be a good place to invest in when looking to buy a rental property. I've been looking at properties for sale on zillow for some time now, and my goal is to buy something under $200,000 (hopefully near $150,000) and receive $1,500 rent from it. I don't want to flip anything as I am going to be an outer state investor. I want a ready to rent property, but it does not have to be all that fancy.
I just wanted to really ask one question though... Is Denton, TX a good place to buy a rental property in?
Yes....Denton is a great place. Three colleges/universities that are growing, Peterbilt truck plant....and still affordable price. Shortage of rental housing there. There are also probably people that work in the Casino in OK that commute to Denton to live.
The 380 corridor from Decatur to Denton to McKinney is one of the hottest growth areas of the country. Starting to see some growth even north of there in cities like Krum.
Price range is good, but getting tougher and tougher to find homes under $200,000.
Yes....Denton is a great place. Three colleges/universities that are growing, Peterbilt truck plant....and still affordable price. Shortage of rental housing there. There are also probably people that work in the Casino in OK that commute to Denton to live.
The 380 corridor from Decatur to Denton to McKinney is one of the hottest growth areas of the country. Starting to see some growth even north of there in cities like Krum.
Price range is good, but getting tougher and tougher to find homes under $200,000.
As your running your numbers, also consider property taxes, they’re high in Texas. For properties in that price range, taxes would be $3200 - $4500/yr.
Hi Young! Nice to meet you! I’m a Denton based REALTOR and I think it’s a great place to invest. I just helped a new investor purchase two rental properties this month in Denton and they will have no problem renting the properties at 1% + of the purchase price once renovations are complete. While most homes in the price range you’re looking at will need at least little work, it is feasible to do what you’re looking to do and potentially find a property with tenants already in place. There is also potential to set up a rent by the room scenario which could help you increase cash flow. (Check out the BP episode with Ryan Chaw to learn more about this strategy.) I’d be happy to chat more about your goals and answer any additional questions you might have!
Wow. Thank you so much for all your responses! It helped me feel more comfortable looking to invest in that area. I might reach out to one of you in the near future to do business with you. Thank you so much for your responses again. I feel the love in the biggerpockets community every time I ask questions here. Have a great one yall!
@Young Kim Hi Young, I grew up in Denton and my family used to own a ton of commercial
Property by the University of North Texas down by the Fry Street area. We sold it during the mid 90s. Today my sister owns 18 rental houses in the area but unfortunately she is not a member of BP and was never taught that you make your money on real estate when you buy and that there are calculators that help you with your estimates on cash flow and bills.
Her biggest problem with rentals is that all the students move out when the universities let out in May and usually look for new housing come fall. So sometimes she has a hard time renting her houses in August when school starts up and sometimes she has a waiting list. But she usually has June and July vacant if she has students renting her houses from her and no one paying rent.
When you calculate your CapEx definitely put in a little extra for vacancy and I'm sure you'll be fine. There's a lot of nice neighborhoods in the area now where you can get a great house for your price range and as DFW continues to expand as a business hub the Denton area is only going to appreciate in value.
@Account Closed DM me I love love to see those 1%+ rule deals. Tons of people I know are looking to buy 1% rule deals as well as I am myself. I can't find them anywhere in the DFW area. I would love to work with you and get you paid on those deals!
@Young Kim Under 200k is very tough for a great property that needs little to no rehab. If you did find it and get it then it would be a 1% rule of the money into the deal (PP+Rehab+closing costs+ holding costs) not 1% of the ARV. The numbers still work, but that 1% rule wouldn't be there if they didn't rehab the house themselves. Denton is a great place to invest. Just want to let you know that 1% rule is HARD to find here. DFW to me is an appreciation play not a cashflow market.
I would like to see some of the deals coming across that you are finding. Always interested in picking up another rental property where I can create equity.
For anyone in this thread that might be interested, there is a virtual Denton County Area Investor Meetup next Monday, January 18th. No agenda, no sales pitches, just talking real estate and making some local connections. Here's the link to the BP event.
@Alecia Loveless, Thank you very much for your honest answer. It's important to stay informed of the downside of investing in the area as well. It definitely balances out my mind knowing such factor. I really appreciate your answer.
Thank you everyone else for your responses. I guess I shouldn't expect the 1% rule especially because I am not interested in repairing the property myself. I should do more analysis on properties from Denton and master the area first. As long as the property does not take money out of my pocket and leave me with $200+ cash flow a month after all the expenses, I would like to make the purchase. I know my first deal can't be perfect as I am not special. I just hope I can find something solid that will generate at least a little bit of cash flow after the payment of PITI, and putting reserves to the side for maintenance costs, and vacancies.