Where to invest in Texas for 1% ARV

Question

Hi All,

We are beginners to Texas real estate market. Please advise on areas to invest for 1% rule. We are going to have our base in Dallas area, but we are open to invest in 3-4 hour radius, near Houston, Austin, Oklahoma city or anywhere in between. We can invest in SFR or small multi-family buildings. (We got inputs from experts on few areas near Dallas, we are open to expanding our radius) Appreciate it!

Also, we are looking to network with other investors, wholesalers,realtors focusing on investments, lenders and property management companies in those areas. Please PM me if you like to connect.

Ben Scott · Answer

There are deals in Oklahoma City but they are few and far between. Be wary of wholesalers that inflate the ARV on some of their contracts.

Tom O'Stasik · Answer

@Ben Scott I’d say the exact same about Tulsa

Todd Rasmussen · Answer

@Geetha R.

I've seen some deals out of College Station, don't know if that's in your geographic area but I'll send you the realtor's info that sent them to me.

Jaron Walling · Answer

I'd aim for Dallas and the same neighborhood you're living in now. The best deals are found when you connect with local people.

Cheers.

Polo Vazquez · Answer

The big cities in Texas will all give you great appreciation, but it has become very hard to find deals that meet the 1% rule unless its a property that needs work. You have to look at the cities and towns. I grew up in a bordertown and I commonly see deals that meet the 1% rule and hence decided to invest in this area and extend my MLS access to this area as well! Send me a DM if you would like more info on this area.

Gabriel H. Gaytan · Answer

Hello, You should have no problem investing in San Antonio, Texas to hit the 1% rule. Easily.

Pete Harper · Answer

@Geetha R.

There are plenty of 1% deals in central Texas. Dallas and Austin are super hot but if you look in some of the smaller markets along the I35 and I45 corridors there are still good deals. Waco-Temple-Killeen or BCS.

Will Fraser · Answer

In principle I agree, but the nature of many pockets of the Wild and Crazy Texas RE economy make that impossible for 1% rule deals.  If living in north Dallas, for example, you'd be sitting at 30-50% market value to be at the 1% rule, and most people even with wonderful networking acumen, don't wrap up contracts sitting that purchase price.  When possible DO IT DO IT DO IT!

In the meantime, while you build those relationships with people nearby, look for some growing or more nuanced markets where that Rent/Value ratio is possible.

Account Closed · Answer

Hi Todd, I am interested in connecting with your College Station, TX contact- if you would not mind sharing info please send me a message. Thanks!

Geetha R. · Answer

Hi Everyone,

Thank you so much for all your inputs!

Really appreciate it! Will look into these areas and also will network locally. Do you recommend any real estate investment associations in Dallas area?

I see the following associations listed in Biggerpockets.Dallas Real Estate Investment Group Lifestyles Unlimited- Dallas/Ft. Worth North Texas Association of Real Estate Investors (NTAREI)

Where to invest in Texas for 1% ARV

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