Can anybody help me identify good areas or zip codes near the Dallas suburbs to purchase small apartments. We're looking to buy 20 to 50 units that need minor renovations to create some passive income.
FYI, be careful of taking advice such as this as the person giving it may have self interests in the advice they offer. That said, you may be too late to the party, I know I was. The DFW area for multi units are at record low cap rates and record high occupancy levels. In other words, you are trying to buy in an area that is at the top of its market and sellers know it which makes it extremely difficult to obtain true cash flow and have low downside risk.
@Will Barnard is spot on, and the assessment actually applies to most of the more desirable areas of the DFW Metroplex, be it SFR or MFR.
We're starting to see a little softening of the SFR in some of the areas that were the hottest last summer, but softening just means that most of the properties are no longer going for above asking. We're still in an inverted rent to value situation, so cash flow on anything is tough right now, unless you can find a screaming deal. Honestly, it's not impossible, but it's not likely for something that is only "light rehab".
Thanks for the advice, is there any other places like, Houston, San Antonio, Austin areas to buy small apartments? I understand that I might be late to the game but I'm just looking for decent apartments with a chance to add value and increase a little income.
Houston is in the same boat right now, your best bet is off market deals which will require you to be creative in the market in finding these projects.
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