Rookie looking to make her first long-term rental investment
Member since 2023 · 1 post · 4 votes
Rookie looking to make her first long-term rental investment
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Realtor · Lubbock, TX · Member since 2016 · 128 posts · 61 votes
1yThe DFW market has a lot going for it—but if cash flow is your primary objective, it’s worth looking beyond the core metro area. Surrounding markets like Decatur, Sanger, Celina, Cleburne, Waxahachie, Granbury and Weatherford often offer significantly lower purchase prices and less competition, which can translate into better rental yields and stronger cash-on-cash returns.
One big advantage in these outlying areas is the leverage buyers have with new construction homes. Builders in these markets are often more motivated to close deals, especially when inventory is sitting longer than in the urban core. This gives investors room to negotiate closing costs, rate buy-downs, upgrades, or even price reductions—perks that can significantly improve your numbers from day one. New builds also tend to come with warranties and lower maintenance costs, which can further support healthy cash flow.
Also, don’t overlook the potential in small commercial properties in these surrounding areas. With population growth and local business development expanding outward from DFW, many of these towns are seeing increased demand for retail, office, and mixed-use spaces. Small commercial buildings can offer solid cap rates and longer-term tenants, making them a great complement—or alternative—to residential investing if you're focused on maximizing income.
Bottom line: there’s a lot of opportunity just outside the DFW core, and for cash flow-focused investors, it’s definitely worth a closer look.
9 Replies
- 1yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Welcome to the journey—you're starting off with the right mindset and some solid inspiration! In the DFW market, there are still pockets where turnkey rentals can cash flow, especially in areas just outside the core like Mesquite, Garland, or even parts of Denton and Fort Worth. For your first deal, sticking with a low-maintenance property is smart so you can focus on learning the ropes without being overwhelmed. DM me and I’ll point you in the right direction with local contacts, property leads, and potential mentors in North Texas!
Good luck!
NETWORTH BUILDERS5236 Reviews - 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Supriya Sharma:
Hi BP Community,
I am a rookie looking to make her first long-term real estate investment in the DFW area that has a positive cash flow. Open to other nearby areas in North Texas to get that positive cash flow. I am looking for turnkey rental to make things easier for my first investment and very inspired by this community. Shout out to Dave Meyer and Ashley Kehr who I diligently watch every day on their respective podcasts! Love the content you guys are publishing. It helps us rookies immensely! If there's someone out there willing to mentor me in the DFW area, I would really appreciate the help. Thank you!
Hey @Supriya Sharma, welcome to the BP Forum! What type of properties are you seeking, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount?
- Realtor · Lubbock, TX · Member since 2016 · 128 posts · 61 votes1y
The DFW market has a lot going for it—but if cash flow is your primary objective, it’s worth looking beyond the core metro area. Surrounding markets like Decatur, Sanger, Celina, Cleburne, Waxahachie, Granbury and Weatherford often offer significantly lower purchase prices and less competition, which can translate into better rental yields and stronger cash-on-cash returns.
One big advantage in these outlying areas is the leverage buyers have with new construction homes. Builders in these markets are often more motivated to close deals, especially when inventory is sitting longer than in the urban core. This gives investors room to negotiate closing costs, rate buy-downs, upgrades, or even price reductions—perks that can significantly improve your numbers from day one. New builds also tend to come with warranties and lower maintenance costs, which can further support healthy cash flow.
Also, don’t overlook the potential in small commercial properties in these surrounding areas. With population growth and local business development expanding outward from DFW, many of these towns are seeing increased demand for retail, office, and mixed-use spaces. Small commercial buildings can offer solid cap rates and longer-term tenants, making them a great complement—or alternative—to residential investing if you're focused on maximizing income.
Bottom line: there’s a lot of opportunity just outside the DFW core, and for cash flow-focused investors, it’s definitely worth a closer look.
- Property Manager · Dallas/Ft. Worth · Member since 2024 · 70 posts · 32 votes1y
Hi Supriya!
Congrats on taking the first steps toward your real estate investing journey!
DFW has lots of opportunity for positive cash flow, especially if you're open to markets like Wylie, Denton, Saginaw, or parts of Fort Worth. Turnkey rentals can be a great way to get started, and having solid partnerships in place makes all the difference.
Best of luck on your first deal, you’re definitely in the right place!
- Member since 2019 · 22 posts · 13 votes1y
I currently reside in DFW, what type of Cash on Cash are you seeing in DFW? With rising insurance costs and taxes yoy, I refocusing on other states for cash flow and appreciation.
- 1yKyle MccawBusiness MemberProperty Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
— love your energy and that you’re soaking up all the right content! Positive cash flow is great, but don’t forget the other three ways rentals build wealth over time:
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Principal Paydown – Your tenants are buying the house for you, one month at a time.
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Appreciation – North Texas continues to see strong long-term value growth, especially around job hubs and expanding suburbs.
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Tax Benefits – Depreciation can shelter thousands in rental income from taxes, and 1031 exchanges let you defer capital gains and scale faster. Taxes are the enemy — use every tool you can.
Turnkey properties can be a good way to start, just be sure they’re truly turnkey. Even “rent ready” homes often need work in the first year, especially in this market.
Long-term, rentals are a delayed gratification game — but it works. I struggled early in my journey too, but consistency paid off. You’re already doing the right things by educating yourself and asking questions.
Feel free to look beyond Dallas into places like North Fort Worth, Saginaw, or parts of Denton County for better yield on your first deal. You're on the right path — stay patient and build smart!
McCaw Property Management4.4909 Reviews -
- Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes1y
Hi Supriya,
Congratulations on getting in the real estate game. I think it is one of the few ways the average person can get wealthy in America and maybe around the world.
Cash flow is important, but a function of your leverage. Buy with cash, you get cash flow. Buy with leverage and it will depend on how much leverage you use? What I typically see right now around DFW is that you may need 30-40% down to break even or cash flow some each month. That's not a bad thing. You just want to know your numbers.
Also while there is no guarantee and it will depend on your upkeep and updates to the property, but rents tend to go up over time. Of course that is not necessarily true if you never do anything to the property and just let it deteriorate over time. What I have seen over the years is many investors aren't initially happy with the cash flow, but you think if you can raise rents $50-$100 year over year or maybe more, then after 10 years you're really happy with the rent and cash flow, so it tends to work out over time.
I like many of the cities others have mentioned and would add places like Sherman where there are a lot of demand drivers and in the path of progress.
Let me know what we can do to assist you with your journey.
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