Investor · Charlotte, NC · Member since 2020 · 41 posts · 14 votes
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.
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.
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.
Rental Property Investor · Streetman, TX · Member since 2018 · 527 posts · 495 votes
5y
@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.
Investor · Charlotte, NC · Member since 2020 · 41 posts · 14 votes
5y
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)
Real Estate Agent · McAllen, TX · Member since 2017 · 382 posts · 281 votes
5y
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.