How to estimate potential rental income in an area

How to estimate potential rental income in an area

Dallas, TX · Member since 2017 · 11 posts · 1 vote

Hi everyone,

I'm very new to real estate investing, and am in the market for a rental property in Dallas (price range $250-300K). My primary fear is that we'll buy a house, and have it sit without a renter for a long time, or we end up barely covering mortgage.

In your experience, what has been the most reliable source of information for:

  • Average rent in the area
  • Typical vacancy periods

I've seen information on the standard real-estate websites like Trulia, but the ranges between websites vary quite a bit.

Thanks a lot for the help/advice, and apologies in advance if this question has been asked/answered in the past.

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  • Developer · Hobart, IN · Member since 2014 · 773 posts · 225 votes
    9y

    I would recommend you get on the phone and call the local property managers in the area. They will know exactly what you are looking for and may be a good idea anyway for them to manage the property depending on what your goals are. Hope that helps some?

  • Investor · Fort Worth, TX · Member since 2012 · 209 posts · 37 votes
    9y

    All good points above.  @Jervin Justin Also, join and attend local real estate networking groups.  Asking this question in front of local investors will get you a ton of great answers.  I am over in Fort Worth and we used to get a bigger pockets group together over on our side of the metroplex.

    I can tell you, from investing in the same/similar market (Tarrant County), that a $250-300K house may be tight on cash flow, unless the neighborhood happens to bring higher-than-market rents.  Feel free to message me if you want to talk neighborhood specifics, I can take a look and give a better answer.

  • Dallas, TX · Member since 2017 · 11 posts · 1 vote
    9y

    Thanks, both of you!

    @John Mathewson, good point about the property manager angle, will definitely talk to them at part of my diligence.

    @Adam Roberts, thanks for the offer, I will send you a private message in a minute, would love to get your thoughts if you have some spare time.

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