I am investor, who is planning to invest around $300,000 in real estate. I am in dilemma, whether to invest in Arlington, TX or Frisco,TX? Frisco properties are no where near 1% property rule, but has good probability to appreciate. Arlington properties are priced little more than 1% rule, but less probability to appreciate. $250K worth property in frisco will probably get me $1800 rent, but $160k property in arlington,tx will get me $1400 rent. Renters in Frisco will be well off and more stable, but renters in Arlington,TX will be less stable. Occupancy rate in frisco will better than in arlington, tx.
Please advice if my analysis make sense.
I personally would go for Arlington. I prefer houses around the 100-150k ARV mark and Frisco is too high end for my tastes in that sense.
It sounds like you are buying cash? If so and you have 300k to invest and can get 1 property in Frisco at 250k or 2 properties in Arlington at 160k +/-, I would go with Arlington - but I am focused on cash flow and not appreciation. I disagree with the comment about the occupancy rate in Frisco being better - better off tenants tend to move into houses of their own before too long.
The housing stock in Arlington on the whole will be older than in Frisco, which brings with it other issues around maintenance, which may add another consideration.
Why focus on just Frisco and Arlington? There is a lot of real estate in between.
I also agree Arlington is my preference. The property taxes on a $250K house in Frisco would roughly consume $5500 of annual rental revenue. Why not buy two or three houses in Arlington for $300k total. The property taxes in Arlington are slightly higher. For 300K in real estate the taxes are roughly $8050.00, but you'll have the opportunity to collect up to133% more in rental revenues. That should offset the property tax difference and yield you a higher rate of return, provided that you can keep your other expenses under control.
I personally wouldn't betting on the higher appreciation rate in Frisco. The 10-12% percent increases that we have seen the past few year cant continue forever.
If you looking for rental properties. Join my cash buyers list - link my signature. I actively market in Arlington, Frisco, and in between.
@Nilesh Nemade I feel that there is a big difference between Frisco and Arlington. I do know some investors that Air BNB properties in Frisco. But those properties start at $250k price point. For most investors in the DFW area the price point is $100k-$150k because of the rental price at those levels. And appreciation is been very good for either market. Whether it's 8% appreciation or 9% appreciation that 1% difference is hardly worth analyzing. Arlington vs. Frisco is almost too different to compare but it's all about what your tolerances are. I'm with @Andy W. that there are plenty of other great neighborhoods that have a good price point besides Arlington as well. Good luck in your search.
Thank you Andy, Scott and Andrew for your views. One correction!! I don't have 300k cash. I plan to use 50 to 60k cash to make 20% down payment.
Which class(B or C) will neighborhoods Arlington,TX fall in? 76012 and 76002 looks attractive to me.
Do you have any suggestions on any neighborhoods other than Arlington TX, which can potentially provide positive cash flow properties? Please refer a good realtor as well.
@Nilesh Nemade You know what? I really need to delve into market research because I have no idea how people know which class neighborhoods, market "trends" or anything. Thank goodness for BP! I'll be sure to look up how to do that on here!
To answer your question, 76002 and 76001 are awesome. I also like North Arlington 76006 and 76011 for vacation rentals (which is what I've done), but watch the prices. I am biased and love Arlington. I've only passed through Frisco, but have heard it to be more expensive than Arlington.
I'd suggest looking into Grand Prairie, Fort Worth, & Mansfield as well! I also have heard great things about Burleson and Cleburne as well. Let's connect soon!
Hi Niel. My wife Becky is a DFW realtor with KW McKinney and has lots of experience working with buyers/investors here in DFW-and particular a number of BPers. If you send me a colleague request I can send you her contact info. I know she would be happy to help. FYI we own 6 rental SFRs as well so know the ropes. Good luck! Dale
I have lived and worked in Frisco for the past 17 years. There is no comparison between Arlington and Frisco. Both are nice places, but totally different. Frisco has repeatedly been one of the fastest growing cities in the US for over 10 years. Frisco was also named most successful city in the US with a median income of $112,155 and unemployment rate of only 4.9%. The schools are highly rated and is one of the most requested by buyers. We have grown from one high school to ten high schools. Also, with Toyota and other companies relocating to this area and bringing thousands of jobs to the area, the demand for housing is extremely high. Check out the 5 Billion Dollar Mile for more info.
Inventory can't keep up with the demand here and many listings have multiple offers and sell way over list price. You will find many less expensive properties in Arlington, however, your demand, appreciation and rental income will be a lot higher Frisco.
Good luck with your search!
Frisco market is already too high, No one know how much appreciation left in that market.
Never invest based on Appreciation, just invest based on cash flow. specially when market is too hot.
Feel free to call me if you like to discuss more or meet for coffee, i am in McKinney TX.
Both Frisco and Arlington are really good cities. As with any city you'll have communities within that vary in class. These two cities have each class.
I'd find the class that I'm interested in and then look in both Frisco and Arlington for the best deal.
Therefore, I do not believe the city is as much of a concern as the return. Find the best deal that works with your desires. Good luck on the hunt!
I would echo what others have chimed in. Frisco does not make sense for rentals.
I have been actively looking for rentals all over in metroplex. Last week, I made an offer for a house in Cedar Hill and was outbid. My offer was for full asking price.
I like pockets of cedar Hill, Arlington ( south east, Mansfield isd), parts of Crowley.
Thank you All for great constructive discussion. You are all awesome. I definately look forward to have coffee or lunch with you guys.
Please refer realtor who can help in investment properties in cedar hill/Arlington area.
Just curious if you pulled the trigger on these areas and what your experience have been like. Im looking to invest in them as well... just read that Arlington TX is listed as one of the top 10 hottest areas in all of US for 2019.