LTR Dallas-Fort worth area
Hi All,
Due to the new Airbnb regulations likely putting them hammer in Dallas, I’m backing out of a deal that I was closing on in a week and swapping to LTR. (Follow up to a post the other day about my air bnb deal being in the hood)
Where would the best place for LTR to deploy 50k (by myself) or 100k (partner)?
SFH seem to have very little cash flow, small multi-family are scarce in DFW, and commercial RE has such a high barrier for entry on the down payment side.
Need advice and where to move forward.. do we go far outside DFW? Like Sherman or something?
Thanks in advance.
Sherman and Denison are decent emerging markets for SFR rentals. South DFW suburbs are growing in the rental space (Waxahachie area). The Austin area is growing like crazy and rent is sky high. Best of luck!
Quote from @Jenna Parker:What price range would be good for these locations in DFW suberbs?
Sherman and Denison are decent emerging markets for SFR rentals. South DFW suburbs are growing in the rental space (Waxahachie area). The Austin area is growing like crazy and rent is sky high. Best of luck!
Quote from @Jenna Parker:
Sherman and Denison are decent emerging markets for SFR rentals. South DFW suburbs are growing in the rental space (Waxahachie area). The Austin area is growing like crazy and rent is sky high. Best of luck!
Jenna,
Have you invested or know anyone who has invested in the Waxahachie area?
I invest in Johnson County just south of DFW. There's some serious rehab properties you can pick up around $90-110k, but need $70k in rehab. Otherwise you can get rentable properties in the $180k and up pricepoints. I don't know where you'd find 1% rule houses if that's what you're hoping for.
Quote from @Alicia Marks:Yeah I don’t think 1% is possible anymore in DFW.
I invest in Johnson County just south of DFW. There's some serious rehab properties you can pick up around $90-110k, but need $70k in rehab. Otherwise you can get rentable properties in the $180k and up pricepoints. I don't know where you'd find 1% rule houses if that's what you're hoping for.
how much cash flow are you getting off those 180k+ properties in that area?
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City council meeting tonight to discuss AirBnB if you're interested.
Quote from @Bruce Lynn:I was at the barley house meet up in Dallas couple weeks ago with council members and alliance. Also was on the webex call today listening to the debates.
City council meeting tonight to discuss AirBnB if you're interested.
it doesnt look good for air bnb.
Quote from @Brandon Craig:
Quote from @Jenna Parker:What price range would be good for these locations in DFW suberbs?
Sherman and Denison are decent emerging markets for SFR rentals. South DFW suburbs are growing in the rental space (Waxahachie area). The Austin area is growing like crazy and rent is sky high. Best of luck!
In terms of a down payment? $75k might be ideal but you could probably get away with $50k and have a decently cash-flowing property.
Quote from @Adan Velazquez:
Quote from @Jenna Parker:
Sherman and Denison are decent emerging markets for SFR rentals. South DFW suburbs are growing in the rental space (Waxahachie area). The Austin area is growing like crazy and rent is sky high. Best of luck!
Jenna,
Have you invested or know anyone who has invested in the Waxahachie area?
Not personally, actually. But I lived in the area for a few years and noticed massive expansion and a surge of renters in many neighborhoods. Plus, I've quoted a few deals in the Waxahachie area that were cash-flowing nicely. I saw someone mentioned Johnson county. That's a good place to look. Also Arlington/Tarrant county.
Quote from @Bruce Lynn:
City council meeting tonight to discuss AirBnB if you're interested.
Dallas?
@Brandon Craig
I invest in long term rentals in central areas like Arlington and Grand Prairie near major freeways, and in the center of the metroplex. I’ve also got 4 LTR in Ft Worth that do well. I buy around 200k and rent them for $1600-$2200. That’s where the demand is. Starter homes in this range appreciate better. And demand is strongest in this affordable housing range. 250k range will buy you a nice rental that’ll rent for $2100-$2300/month. But don’t pay higher than that because your return won’t be nearly as good. I have zero turnovers because almost all of my tenants won’t ever be able to afford or qualify to buy a house. Turnovers kill profits. And I don’t care about the school district. People aren’t moving into my properties for the school district. Lol. They just want a cheap place to live.
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@Brandon Craig The "no"s won last night. Maybe 20-30 alliance members there and very angry it seemed with the results. @Lucia Rushton Yes ...City of Dallas. City of Fort Worth had public comments 2-3 weeks ago. It was about 50/50 in favor or against from the citizen speakers. I'm guessing Ft. Worth will not change their current ordinance. Not sure when council actually votes, maybe next session.
Quote from @John Morgan:
@Brandon Craig
I invest in long term rentals in central areas like Arlington and Grand Prairie near major freeways, and in the center of the metroplex. I’ve also got 4 LTR in Ft Worth that do well. I buy around 200k and rent them for $1600-$2200. That’s where the demand is. Starter homes in this range appreciate better. And demand is strongest in this affordable housing range. 250k range will buy you a nice rental that’ll rent for $2100-$2300/month. But don’t pay higher than that because your return won’t be nearly as good. I have zero turnovers because almost all of my tenants won’t ever be able to afford or qualify to buy a house. Turnovers kill profits. And I don’t care about the school district. People aren’t moving into my properties for the school district. Lol. They just want a cheap place to live.Sl
you're talking about SFH right? how old are the homes? Do you have a lot of cap ex issues? What is your cash flow looking like for one of those 200k homes? I assume they are C-D class?
thanks in advance I may look into those areas I grew up in Arlington
Quote from @Brandon Craig:
Quote from @Alicia Marks:Yeah I don’t think 1% is possible anymore in DFW.
I invest in Johnson County just south of DFW. There's some serious rehab properties you can pick up around $90-110k, but need $70k in rehab. Otherwise you can get rentable properties in the $180k and up pricepoints. I don't know where you'd find 1% rule houses if that's what you're hoping for.
how much cash flow are you getting off those 180k+ properties in that area?
Depends, I sold one this morning because it was only going to do $75/ door with the new tax increase. I have a duplex doing $225/ door that I BRRRd an extra $15k out of in March before rates went up.
Quote from @John Morgan:Also what price per square foot do you aim for. I ran cash flow calculator on a couple in grab prairie for sale included 5% capex, 5% vacancy and 5% maintenance. One is $179/sqft other $162/sqft. Both looked like 200-300/m of cash flow for 4-6% CoC.
@Brandon Craig
I invest in long term rentals in central areas like Arlington and Grand Prairie near major freeways, and in the center of the metroplex. I’ve also got 4 LTR in Ft Worth that do well. I buy around 200k and rent them for $1600-$2200. That’s where the demand is. Starter homes in this range appreciate better. And demand is strongest in this affordable housing range. 250k range will buy you a nice rental that’ll rent for $2100-$2300/month. But don’t pay higher than that because your return won’t be nearly as good. I have zero turnovers because almost all of my tenants won’t ever be able to afford or qualify to buy a house. Turnovers kill profits. And I don’t care about the school district. People aren’t moving into my properties for the school district. Lol. They just want a cheap place to live.
Area showed rent 2-2.2k/m.
what CoC is realistic in your experience of the areas you mentioned you invest in?
@Brandon Craig Have you looked into off market deals? There’s a bunch out there where the numbers make sense if you’re willing to buy something that needs work.
Quote from @Matt Solis:
@Brandon Craig Have you looked into off market deals? There’s a bunch out there where the numbers make sense if you’re willing to buy something that needs work.
How do I access off market deals?
Quote from @Devin Bray:Thanks for the response. Unfortunately, I am in a weird spot. I already have a realtor who is primarily focused on airbnb investments in Dallas, but ours fell through due to the potential ban, so i've now moved to LTR.
@Matt Solis Thank you for the recommendation!
@Brandon Craig I get 10-15 off market deals a week all well below market value in Carrollton, Lewisville, Flower mound, Denton, Little Elm, Prosper, Aubrey, Pilot Point, Sherman, Denison, Gainesville, and Whitesboro. I get everything from single family, multi family, raw land, and in all rehab levels. I'd love to connect with you and tell you more about New Western and our off market deals!
He doesn't have any systems setup for off market deals like you do, and doesn't really focus on LTR anyways. I don't think it's right to jump ship with him for another realtor after the help he's provided.
What is best practice in these scenarios?
Quote from @Brandon Craig:I always go with the listing agents. It’s so much easier. Ditch your agent and do it this way. Plus the listing agent usually gives you great info to help base your offer on. And they’ll show it to you on a moments notice and bend over backwards to sell it to you so they’ll get full commission.
Quote from @Devin Bray:Thanks for the response. Unfortunately, I am in a weird spot. I already have a realtor who is primarily focused on airbnb investments in Dallas, but ours fell through due to the potential ban, so i've now moved to LTR.
@Matt Solis Thank you for the recommendation!
@Brandon Craig I get 10-15 off market deals a week all well below market value in Carrollton, Lewisville, Flower mound, Denton, Little Elm, Prosper, Aubrey, Pilot Point, Sherman, Denison, Gainesville, and Whitesboro. I get everything from single family, multi family, raw land, and in all rehab levels. I'd love to connect with you and tell you more about New Western and our off market deals!
He doesn't have any systems setup for off market deals like you do, and doesn't really focus on LTR anyways. I don't think it's right to jump ship with him for another realtor after the help he's provided.
What is best practice in these scenarios?
@Brandon Craig a traditional real estate agent is not going to be much help with off-market deals. Most don't understand that world. Wholesalers are plenty. But it is a wild west kind of world. So be certain on your comps and rehab estimates. If you use a good hard money lender they will help keep you from overpaying. And only use contractors that are highly recommended by someone that has actually used them.
Quote from @Brandon Craig:You get in touch with someone like me
Quote from @Matt Solis:
@Brandon Craig Have you looked into off market deals? There’s a bunch out there where the numbers make sense if you’re willing to buy something that needs work.
How do I access off market deals?