Arlington,TX versus Frisco, TX

[Nilesh Nemade]

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.

Niel 

[Andy Webb]

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.