Which area in TX to invest?
Investor · Irvine, CA · Member since 2014 · 8 posts · 2 votes
I live in CA, and am thinking about relocating to TX to start investing. My funds are about 500k ( cash) and I'd love to flip houses. I know it's seller's market and hard to find the deals, so I wanted to ask people who flipped or are flipping in TX; which city, the price you purchased at. Thank you in advance!
@Richard D. is exactly correct about school districts driving home values in Texas. However, I would disagree slightly on which ones to target.
Richardson ISD is ranked in the top 25 in the entire nation and is seeing phenomenal appreciation right now as a result. Richardson has the added benefits of 1) predominately voluntary HOA's, 2) much lower property taxes than areas like Southlake & Highland Park, 3) moderately priced homes, 4) outstanding employment and growth opportunities.
Grapevine/Colleyville would be my next choice. It is smaller than Richardson and more centrally located to the greater DFW area. The schools and quality of life are the biggest draw here as is the proximity to DFW airport, for those who travel for work. The ISD is also very highly ranked, though not so much as Richardson. Grapevine/Colleyville overall has slowed slightly in the last 3 months. Although, areas feeding the new Heritage HS are still selling under 30 days, at or above asking.
I completely agree with Richard about Keller, North Richland Hills, HEB, and I would include Watauga as well. Stay away from Ft Worth & Dallas ISD's. (Dallas Lakewood Elementary is good. Ft Worth ISD Ridglea Hills Elementary is good.)
I disagree about Mansfield. The town's growth has not been good for the ISD there. He's spot on with Arlington. The exception would be far SW Arlington, specifically addresses feeding Ditto & Little Road elementaries. (Around the DFW area, you will find a heavier bent toward school district performance and housing demand for the lower levels of school, particularly elementary. I suspect it is partially due to the length of time a child will spend in the Elementary school and the desire to not disrupt the child, during that time.) Even in Richardson ISD, there are 3 particular Elementary school feeder areas that squash the rest of the district. (You should also note that, in Texas, school districts can cross city boundaries. Richardson is a good example. It does NOT include a small portion of Richardson, which is in Collin County, but it DOES include portions of Garland & Dallas.)
There have been some excellent articles written - mainstream press - about why Texas doesn't experience the RE bubble & burst phenom a lot of the rest of the country does. Texas's market is very stable. Even during the subprime crisis, the market in Texas experienced most of it's impact due to the sharp constriction of the lending market. People couldn't get homes financed, so people with homes to sell were forced to drop the prices. However, since the homes were never overvalued, there was not the dramatic impact you saw in markets like CA & FL. The real property value impact in Texas was generally restricted to stagnant or non-existent appreciation for a time.
I am a huge fan of Texas and make no apologies for that fact. We lead the nation in job creation...Dallas leads in terms of large metropolitan areas. Property taxes are higher than a lot of places, but you get what you pay for. People & businesses are moving to Texas. Period.
I heard Dallas is great. You can find a network of people here to connect with to lead you in the right direction, but i will give you a good way to find out some info
1. Contact 3 super star agents in the area that are of interest.
2. Contact 3 management companies to get a feel of the market there
3. Ask them what type of investor activity is happening in __________, Texas.
I have heard of some hot spots in certain areas in Texas that may be worth checking into. Dallas being 1 of them.
Because Oil&Gas booming, all part of Texas are growing right now, depends on how you making a good connection with the local ( Agent/Broker/company ).
I love Austin market & West Texas. ( Around Eagle Ford Shale )
Welcome to Bigger Pockets.
You will find all the information you need on this site. Also, i created a link that New Investors get started with their investing
There are many great places in Texas to invest. Most people might say just pick a city. DFW is a great market. I don't think you can go wrong with any other major city either. San Antonio is huge for military, both active and retired. Austin is just exploding. Demand down there is incredible. Houston is another great market. Lots of people moving there for the oil/gas industry. There are places in West Texas as well that are huge, such as Midland/Odessa. Plenty of people looking to live out there (not sure what the market is like though). With the amount of people flocking to work in the state, it's hard to go wrong. I specialize in the DFW area and I absolutely love it. Feel free to message me with any more questions and hope you decided to come to Texas!
Thank you Gerald & Diyan! I actually have talked to a real estate agent, but I'll ask more agents. Two people that I talked to recommended Plano and Frisco, but I definitely search around eagle ford area too.
The market in Frisco is hot. I bought a house there in July. We were outbid once before our offer was accepted. The time we were outbid, the house sold for more than asking price. Most houses only stay on the market for a few days. Good luck and welcome to Texas.
I work Parker, Johnson & Tarrant Counties in the DFW area. Home here tend to be valued 10-30% lower than other areas like Collin, Dallas, Denton and Rockwall counties (makeup the DFW metroplex). This is a very large area, and 500 k can buy a lot of homes if you look in the right areas.
Right now I currently have a flip under contract for $125k in Eagle Mountain Saginaw ISD area (Fort Worth) current rent so $1050. Current owner accepted it as rent for mortgage so they could move to Parker County. Area rents go for $1400-$1750 for comparable homes.
I am also working an off market flip for under 100k (River Oaks ISD) with rent potential of $1200 a mo. So all you need to do is find serious sellers. Ask the right questions of the agent, and you could make killer profits, bucking trendy places like Frisco. At the same time Frisco is Frisco, soon to be home of the Dallas Cowboys.
Everywhere in Texas is good to invest. Houston/Dallas/Austin/San Antonio. Even the Permian Basin as long as the oil holds up.
>Ross
Thank you so much! I was looking at DFW area ( around Arlington ). Since I'm relocating with my family I want to live in good school area for my son, and flip houses that are not too far . I'll probably message you with a lot of questions.
>Rajib
Thank you! I looked at the market in Frisco by trulia, and I feel the price remains high since there are many great school areas.
>Richard
Foreclosure specialist!? Wow, you could be my mentor. ;) I thought I knew enough about DFW area, but after I read your reply.... Oh boy, I have to learn a lot more about DFW area. Thank you so much for the detailed information. I'll message you when I need your help if it's okay with you.
>James
Thank you! I'll probably need your help when you find great deal! Please keep in touch!
Pick your city. I really dont think you can go wrong. Why do you have to move to invest in Texas. I know of some investors that JV deals out of state. I would rather have 1% of 100 peoples work than 100% of 1 person work. Just my thoughts.
I get about 10 wholesale deals a day in my email box from the Houston area, not sure how I got on that list, but seems to active over there.
Everywhere in Texas is good to invest. Houston/Dallas/Austin/San Antonio. Even the Permian Basin as long as the oil holds up.
No problem with the oil holding up, the bigger problem is that there is a people and housing shortage. 2bd 1 ba houses can fetch $1100/mo and up. 3 beds are in the 1300-1600 range.
Motel 6 is charging $250 a night; mc Donald's starts people at $12.00 an hr, while Walmart is in the $14.00 an hr range. Article in the paper of the weekend that Hailburton is importing 1000 workers from California because there are not enough bodies to fill jobs.
Hi @Hiro Kakeda ,
Texas is a great market right now. I am in Houston and it is definitely a good place to be. It all depends on how much you want to spend on a flip. I have seen flips properties from 100-450K. Of course the higher the price the more profit you can potentially make.
Good luck,
Andres J.
>Greg
I don't have a gut to flip without knowing people yet.
If it' buy/hold, I will not relocate. Thanks for the tip!
>Donald
Thanks for the info! Houston is very attractive too. It's hard to decide!!
>Andres
I'm planning to spend100k-180k/flip (including everything). After I feel comfortable, I want to increase it to 200k-300k/flip. I haven't study houston area yet, I'll do some research. Thank you for helpful reply!
Hiro, Texas is so diversified within its business and industrial sectors, you shouldn't be overly concerned with the locations. Texas has, is, and always will remain a place for opportunity. Schools on the other hand are deal breakers in Texas. Do your homework, and if you want good schools, follow the money.
As a product of Arlington-Sam Houston High School, I can say the AISD schools are nowhere the same caliber today as they were when I attended. I would recommend areas like Katy (near Houston), Southlake, Frisco, Highland Park or Aledo (all in DFW area), even Georgetown in the Austin area, for your better public schools.
If Tarrant county is your first choice, I suggest Southlake, Grapevine-Colleyville, followed by Keller and Northwest or H-E-B. Avoid FWISD, and Arlington. If you want to live in Arlington, move far enough south to be in Mansfield ISD, better schools.
I agree with everyones advice, West Texas is a great area because of the oil and gas, it will eventually make its way into Lubbock. Lubbock is growing and is a very untapped market. Houston, Austin, and San Antonio are good too, My company has branches out there so i have info on the markets there. But if I were to invest in the Dallas metroplex i would try to acquire a flip in Prestonwood, Lake Highlands/WhiteRock area but the real market areas to get into is Plano and Allen with Toyota and State Farm setting up their headquarters there. Those two cities are growing everyday and its going to be a sellers market because the employees are going to need a place to live and with Dallas having less than a two month of supply of homes available just means there is not many homes out there.
@Richard D. is exactly correct about school districts driving home values in Texas. However, I would disagree slightly on which ones to target.
Richardson ISD is ranked in the top 25 in the entire nation and is seeing phenomenal appreciation right now as a result. Richardson has the added benefits of 1) predominately voluntary HOA's, 2) much lower property taxes than areas like Southlake & Highland Park, 3) moderately priced homes, 4) outstanding employment and growth opportunities.
Grapevine/Colleyville would be my next choice. It is smaller than Richardson and more centrally located to the greater DFW area. The schools and quality of life are the biggest draw here as is the proximity to DFW airport, for those who travel for work. The ISD is also very highly ranked, though not so much as Richardson. Grapevine/Colleyville overall has slowed slightly in the last 3 months. Although, areas feeding the new Heritage HS are still selling under 30 days, at or above asking.
I completely agree with Richard about Keller, North Richland Hills, HEB, and I would include Watauga as well. Stay away from Ft Worth & Dallas ISD's. (Dallas Lakewood Elementary is good. Ft Worth ISD Ridglea Hills Elementary is good.)
I disagree about Mansfield. The town's growth has not been good for the ISD there. He's spot on with Arlington. The exception would be far SW Arlington, specifically addresses feeding Ditto & Little Road elementaries. (Around the DFW area, you will find a heavier bent toward school district performance and housing demand for the lower levels of school, particularly elementary. I suspect it is partially due to the length of time a child will spend in the Elementary school and the desire to not disrupt the child, during that time.) Even in Richardson ISD, there are 3 particular Elementary school feeder areas that squash the rest of the district. (You should also note that, in Texas, school districts can cross city boundaries. Richardson is a good example. It does NOT include a small portion of Richardson, which is in Collin County, but it DOES include portions of Garland & Dallas.)
There have been some excellent articles written - mainstream press - about why Texas doesn't experience the RE bubble & burst phenom a lot of the rest of the country does. Texas's market is very stable. Even during the subprime crisis, the market in Texas experienced most of it's impact due to the sharp constriction of the lending market. People couldn't get homes financed, so people with homes to sell were forced to drop the prices. However, since the homes were never overvalued, there was not the dramatic impact you saw in markets like CA & FL. The real property value impact in Texas was generally restricted to stagnant or non-existent appreciation for a time.
I am a huge fan of Texas and make no apologies for that fact. We lead the nation in job creation...Dallas leads in terms of large metropolitan areas. Property taxes are higher than a lot of places, but you get what you pay for. People & businesses are moving to Texas. Period.
I live in the Houston area, and invest in the Houston area. I have lived in this area all my life. I have done 2 flips in the past 12 months, both in the 77057 zip code. I like staying and investing in areas I am familiar with and are stable community areas. My price point is about the same as your I want to get a better feel and rhythm before I increase my investment scope. I typically look for zip codes, and wealth by zip code for targeting areas for investments. Harris, Fort Bend, and Montgomery counties are all great areas for potential. Let me know if I can help in any way. Good Luck! :)
Looks like you have plenty of feedback! I noticed you mentioned Trulia. You will NOT get accurate information from Trulia or Zillow about Texas because selling prices are not required to be reported in Texas. Use Redfin.com for accurate numbers.
Best of luck!
>Richard
Thank you so much for recommending me another ISDs. I've already written down all ISDs you suggested and started researching!
>Steven
I've never heard of Lubbock before. I want to purchase a buy/hold property once a year, and I was going to look only in Odessa. Thank you for letting me know!
>Hattie
Thank you sooooooo much for all those suggestions. Just reading your comments saved me tons of time to narrow my search! I've written down all ISDs you suggested!
>Jennifer
Looking by zip codes is great idea. I'm so glad to see there are women who have similar budgets & goals! I'll definitely let you know when I need your help. Hopefully I can meet you in the future!
>Doug
I love Texan!! You guys are awesome. I knew a lot of people are complaining zillows and trulia about inaccuracy. I'll try redfin as well. thank you for the tip1
@Richard D. is exactly correct about school districts driving home values in Texas. However, I would disagree slightly on which ones to target.
Richardson ISD is ranked in the top 25 in the entire nation and is seeing phenomenal appreciation right now as a result. Richardson has the added benefits of 1) predominately voluntary HOA's, 2) much lower property taxes than areas like Southlake & Highland Park, 3) moderately priced homes, 4) outstanding employment and growth opportunities.
Grapevine/Colleyville would be my next choice. It is smaller than Richardson and more centrally located to the greater DFW area. The schools and quality of life are the biggest draw here as is the proximity to DFW airport, for those who travel for work. The ISD is also very highly ranked, though not so much as Richardson. Grapevine/Colleyville overall has slowed slightly in the last 3 months. Although, areas feeding the new Heritage HS are still selling under 30 days, at or above asking.
I completely agree with Richard about Keller, North Richland Hills, HEB, and I would include Watauga as well. Stay away from Ft Worth & Dallas ISD's. (Dallas Lakewood Elementary is good. Ft Worth ISD Ridglea Hills Elementary is good.)
I disagree about Mansfield. The town's growth has not been good for the ISD there. He's spot on with Arlington. The exception would be far SW Arlington, specifically addresses feeding Ditto & Little Road elementaries. (Around the DFW area, you will find a heavier bent toward school district performance and housing demand for the lower levels of school, particularly elementary. I suspect it is partially due to the length of time a child will spend in the Elementary school and the desire to not disrupt the child, during that time.) Even in Richardson ISD, there are 3 particular Elementary school feeder areas that squash the rest of the district. (You should also note that, in Texas, school districts can cross city boundaries. Richardson is a good example. It does NOT include a small portion of Richardson, which is in Collin County, but it DOES include portions of Garland & Dallas.)
There have been some excellent articles written - mainstream press - about why Texas doesn't experience the RE bubble & burst phenom a lot of the rest of the country does. Texas's market is very stable. Even during the subprime crisis, the market in Texas experienced most of it's impact due to the sharp constriction of the lending market. People couldn't get homes financed, so people with homes to sell were forced to drop the prices. However, since the homes were never overvalued, there was not the dramatic impact you saw in markets like CA & FL. The real property value impact in Texas was generally restricted to stagnant or non-existent appreciation for a time.
I am a huge fan of Texas and make no apologies for that fact. We lead the nation in job creation...Dallas leads in terms of large metropolitan areas. Property taxes are higher than a lot of places, but you get what you pay for. People & businesses are moving to Texas. Period.
@Hattie Dizmond
I share your enthusiasm about TX and more specifically Dallas! I can't wait to move back after I retire from the military. Where is a good place to find property listings to start analyzing deals?
If you just want to get some experience analyzing properties, then the MLS via any of the online real estate sites will do. If you're looking for properties to buy & hold, the MLS is still possible, but it's a total crap shoot. The inventory in DFW is at 2 months. As a point of reference, 6-months is viewed as a "healthy" or balanced - meaning not a buyer's or seller's - market. Richardson is at <=30 days, with the areas feeding the 3 super elementaries at < 2-weeks. Grapevine/Colleyville and the other high quality ISD's on the Tarrant County side of DFW are at 45-days and less, depending on the exact location.
Again, you can find deals on the MLS, but don't plan to make a living doing it in B or better neighborhoods!
If you are looking to start investing right away, you'll likely need to make nice with some local wholesalers.