Considering New Construction in Crowley, TX for First Investment – Worth It?

[Henok Micael]

Hi everyone,

I’m a new investor based in Dallas and recently came across a new construction property in Crowley, TX that I’m considering as my first investment property. The home is a 4 bed, 2.5 bath, listed at around $325K-$335k, with potential rent estimated between $2,300 and $2,500/month.

I'm thinking of putting 25% down and hoping to at least break even, possibly cash flow slightly or benefit from long-term appreciation. However, I have a few concerns and would really appreciate your input:

1. Location & Market Outlook: What’s your take on the future of Crowley, TX as a rental market? I’ve noticed a lot of new build-to-rent communities in the area, which makes me nervous about rent competition and future appreciation.

2. Builder Reputation: The home is being built by Legend Homes, and I’ve heard mixed reviews about their construction quality. If anyone has experience with this builder, I’d love to hear about it—especially how to mitigate risks with quality or warranty issues.

3. Investment Strategy: Given the numbers, would it make sense as a long-term hold or should I be more cautious given the saturation of similar rental homes nearby?

I’d really value any advice or personal experiences you can share, especially if you’ve invested in this area or in new construction rentals more generally.

Thanks in advance!

[Bruce Lynn]

#1.  Check to make sure they will sell to investors.

#2. Check to make sure the rules and regulations of the HOA. Many are not that friendly to investors and the rules can change to make your life difficult in these new communities. I've see 3 different HOAs this year try to change the rules to make big headaches for investors. I don't think any of those measures passed, but rules can change.

#3.  New construction rarely works well for investment, I think most investors would not be excited about your rent vs purchase price.  You will likely do much better with resales.  Also check your school ratings for Crowley.

#4.  It's been a while since I have worked rentals in that area, but if your numbers are correct I would think you would be at the top of the rental price range in Crowley.  I don't think that is a good place to be.  Look at average incomes and back into what people can pay in rent.  Without looking I'm thinking in that area you would want to be in the $1600-$1800/month price range to be in the heat of the market.  The market gets thinner as you move up the price range I expect.