Rental Property Investor · Frisco, TX · Member since 2018 · 16 posts · 4 votes
Hello!
I am new to Texas real estate market and I am looking for deals. I have looked at several properties in DFW metroplex but haven't seen anything super interesting. I was wondering if there are other cities in Texas that leads to higher returns. Anyone has more experience in TX?
I would look into smaller towns in Texas. The DFW area and other large metros are getting harder to find cashflowing properties in decent areas from what I hear. I would go East or West. I am from Lubbock and still own property there. It still cashflows well, but the taxes are literally double what my OKC properties run for appraisal prices within 10k of each other. And that's in the cheap part of Texas. :)
So just make sure you are taking taxes into consideration. As close as you are to Oklahoma, it could make sense for you to look into the OKC area as well.
I would look into smaller towns in Texas. The DFW area and other large metros are getting harder to find cashflowing properties in decent areas from what I hear. I would go East or West. I am from Lubbock and still own property there. It still cashflows well, but the taxes are literally double what my OKC properties run for appraisal prices within 10k of each other. And that's in the cheap part of Texas. :)
So just make sure you are taking taxes into consideration. As close as you are to Oklahoma, it could make sense for you to look into the OKC area as well.
There’s amazing investing opportunities here in Oklahoma. I live in Ardmore, the first notable town north of Texas on I-35. We are 1.5 hrs to Okc or Dallas/Ft Worth. Just a few miles from a beautiful lake and the world’s largest casino. This little town is booming. Houses here are very inexpensive. Cap rates are around 8% with everything factored in. Several of my rentals are capping at 15%. I own a real estate company here and also do property management. My vote is admittedly bias, but check into Oklahoma. It’s a great place to invest.
@Jennifer Pascon the DFW metroplex isn't the market you want to look at in Texas if you're strictly looking at only cash flow / highest immediate return.
Hi! Thanks all for the replies :) . I am currently buying in OKC, but I am also interested in Texas. @Kenneth McKeown, are there other towns in Texas you recommend looking at?
@Jennifer Pascon I'm still buying personally in DFW. As mentioned above if you're more interested in cash flow - smaller towns will be better. I'm in the game for the long haul though - so I'll keep buying in DFW.
There are pockets all over DFW. I'm in Collin County, which is booming with all the businesses moving to the area. The market is hot right now, but deals are still around (although, rarer). Definitely check some of the smaller suburbs like, Wylie, Sachse, Rockwall, Farmersville... you might be able to find some cash flowing properties that are worth investing in.
Any TEXAS county around a metroplex is fair game. I have some good success on lowering property taxes through rural properties that are in commuting distance to a major city. I take advantage of Ag or Wildlife evaluations to lower the taxes with acreage properties.
@Alyssa Dyer I definitely found the OKC love! Thank you guys for being so AWESOME! :) Trying to find the similar love in Texas. Maybe you guys should open a branch here? ;)
I am. I house hacked Norman, sold to my brother who has 5 nice campus rentals within one mile & same property manager. Nowadays Invest heavily in Oklahoma in owner finance, multifamily & mobile home parks. And though I’m in Flower Mound for now, I’m saving to buy an $800 month home creations house in OKC or Tulsa with my wife in next year or two! I love real estate investing & LP’s & starting companies especially in Oklahoma.
In fact to throw a little jab at Texas an article came out on Marketwatch today on most Independent states. Oklahoma was 17 Texas or Property taxes as I call it was a distant 34!
@Matt Millard I have recently invested in a few units in OKC :) however, I would like to diversify a bit and get some properties in TX. If I can't find a good deal here, I will probably get more units over there too.
Hi Steve, I am buying cash and looking for properties that will have at least 7% cap rate in the first year and 28% total ROI over a 5 year period. I am looking for properties that will require minimal repairs and hopefully already rented! :) If you have something available, please let me know!