Fort Worth or McKinney

15 Replies

Hi, I'm looking at both For Worth and Mckinney now and want to know your experience and which county do you vote for investing? my goal is long term buy and hold, I like 3/2/2 single family.  I also want the ease of renting out.

Currently the day on market is slightly longer than last year, and more property reduce their price, so I think it's a good time to buy a property, but it's fall/winter now and I'm not sure if it's going to be easy to rent out.

1. Fort Worth or Mckinney, which do you prefer to invest?

2. Is Fall/winter a good time to buy rental property? Do you buy at this time? is it hard to find tenant?

Personally I think it both are still overpriced.  I invest in the semi-rural areas West of Fort Worth, but that is a strategy that calls for local knowledge and would not be a good idea for long distance investing because frankly the property managers that will deal with rural rentals around here are a joke. Now that I am at nine active and two in rehab properties, I would kind of like to get a good manager, but there aren't any.

Anyway as for the Fall/Winter question, I have bought about two thirds of my places from November to January.  Seems to be a bit less competition and sellers want to get things done fast.

There are lots of people that say you can't get good tenants after Halloween. That may be in some Northern and Midwest markets, but around the DFW area there are so few good rentals available that they are lining up whenever something comes open.

@Chingju Hu I think looking towards the edge of both of these places are a good idea. Buy November through beginning of February, properties are typically stagnate during this time.

Just beware of all the costs with investing in Texas from CA. You will be investing in the state with the 4th highest property tax % (roughly 2.4 - 2.75% of assessed value which will be re-assessed annually, especially after a sale). You will also be in a state with pretty high property insurance (roughly 0.8% of actually value). Finally, you will be paying a state income tax on all money earned above what depreciation covers in a state with the 2nd highest income tax.

I am just wanting you to understand all the extra costs you will be paying. If you form an LLC in Texas that has no annual filing fee, be aware that California makes all out of state LLCs also file with the state so you will be paying filing and annual fees in CA as well. I don't mean to scare you away but I have bought property from people who got a losing investment and had to offload it quick because they didn't account for these costs.

Good luck in your search and post if you have any other questions.

If you want a higher equity play i'd go McKinney, Ft Worth is likely better for cash flow, but less upside. These are just based on past data though.

Also remember that Fort Worth and to a lesser extent McKinney are very diverse cities. Fort Worth has several ghetto type areas and several areas with million dollar homes and everything in between.  

Fort Worth will most likely have a lower purchase price point, compared to McKinney, but all in all, depends on what type of property/tenant/return you are looking for. Take a hard look at property taxes in Collin vs Tarrant County.

Fall/winter can be a great time to buy. The DFW market has softened a bit in the last few months, since summer selling season and corporate relocations have slowed.

@Chingju Hu both areas have great rental opportunities. If you decide on Fort Worth, look North of 820 along I-35W, 287, 170 and 114. This area has many large employers. For some reason the Alliance area does not get the publicity that Plano/Frisco/McKinney receives. However the list of companies relocating there is impressive. 

Hi @Chingju Hu ,

I have properties in both McKinney and Fort Worth.

  • McKinney is excellent market but price went up very high in last 3 years. Rental numbers will not make sense.
  • Fort Worth is going through excellent growth.

As @Paul Ewing said there are different areas in FW. You can focus on Crowley, Burleson, Saginaw, Haslet area for investment.

As @Ronald Rohde suggested FW make better sense from numbers now.


@Kyle Mccaw , I heard a lot about growth around Alliance area.. I need to drive by one time.. properties are very expensive in that area or still make sense for good investment?

@Shital Thakkar very expensive is a relative term. The values have gone up over the time. Generally they are less expensive than McKinney. Saginaw and Haslet fall into the area I mentioned. 

@Chingju Hu ,

I think your question depends a lot on what area you want to work in.  If you have a PM in one area or the other that you like, then I would go that way.  

@Paul Ewing 's comment about good managers is very important.  I also agree with the Fall/Winter comment. 

@Ryan Blake also brought out a lot of points that folks don't think about.  We have done some work with clients who come from places like Arizona and Cali and they can't believe all of the insurance issues we see in Texas. (To say nothing of the tax issues. )

@Ronald Rohde 's comment about cash flow vs. upside is something that a LOT of people never think about.  If you buy one of those crummy old houses in a rough part of any town, the cash flow can be fantastic. 

I just spoke to the cleaning lady in the hospital in Denver.  Her home value went from $150k to $300k in 3 years.  You can't get that in any cashflow situation.  But, I'll bet if you would have bought it and tried to cash flow it at first, it wouldn't have been that exciting.  

In most cases, I think that appreciation and cashflow are not in bed together.  Sometimes you will see a unicorn that has both. 

Good luck, and let me know if I can help with anything. 

Originally posted by @James Call :

@Chingju Hu,

I think your question depends a lot on what area you want to work in.  If you have a PM in one area or the other that you like, then I would go that way.  

@Paul Ewing 's comment about good managers is very important.  I also agree with the Fall/Winter comment. 

@Ryan Blake also brought out a lot of points that folks don't think about.  We have done some work with clients who come from places like Arizona and Cali and they can't believe all of the insurance issues we see in Texas. (To say nothing of the tax issues. )

@Ronald Rohde 's comment about cash flow vs. upside is something that a LOT of people never think about.  If you buy one of those crummy old houses in a rough part of any town, the cash flow can be fantastic. 

I just spoke to the cleaning lady in the hospital in Denver.  Her home value went from $150k to $300k in 3 years.  You can't get that in any cashflow situation.  But, I'll bet if you would have bought it and tried to cash flow it at first, it wouldn't have been that exciting.  

In most cases, I think that appreciation and cashflow are not in bed together.  Sometimes you will see a unicorn that has both. 

Good luck, and let me know if I can help with anything.

James Call

Insurance Agent in Texas & Utah
LandlordInsuranceTexas.com

 Hi James, Thanks for your comments, what is the insurance issue you mentioned??

@Chingju Hu   As long as you are planning for a long term investment you are probably ok anywhere in Collin County.  I normally do not suggest people pay retail for properties in Collin County for rental, but that would probably be the easiest for you.

I would actually stay away from Princeton.  It is cheaper but the area is flooded with brand new rentals.  

Originally posted by @Account Closed :

@Chingju Hu   As long as you are planning for a long term investment you are probably ok anywhere in Collin County.  I normally do not suggest people pay retail for properties in Collin County for rental, but that would probably be the easiest for you.

I would actually stay away from Princeton.  It is cheaper but the area is flooded with brand new rentals.  

 What other towns to lookout in Collin County ?

Originally posted by @Sandeep Reddy :
Originally posted by @Michael Biggs:

@Chingju Hu   As long as you are planning for a long term investment you are probably ok anywhere in Collin County.  I normally do not suggest people pay retail for properties in Collin County for rental, but that would probably be the easiest for you.

I would actually stay away from Princeton.  It is cheaper but the area is flooded with brand new rentals.  

 What other towns to lookout in Collin County ?

 East Plano, Frisco, Anna

@Chingju Hu

The insurance issues are mainly that the cost for insurance can be higher than other parts of the country. 

With hail on roofs, hurricanes, and flooding, insurance prices for a $200k home in many parts of Texas will be higher than insurance for that same home in Arizona, Nevada, or many parts of California.

We do what we can to find the best coverages for folks, but the numbers are just higher than other areas of the country. 

Originally posted by @Chingju Hu :

Hi, I'm looking at both For Worth and Mckinney now and want to know your experience and which county do you vote for investing? my goal is long term buy and hold, I like 3/2/2 single family.  I also want the ease of renting out.

Currently the day on market is slightly longer than last year, and more property reduce their price, so I think it's a good time to buy a property, but it's fall/winter now and I'm not sure if it's going to be easy to rent out.

1. Fort Worth or Mckinney, which do you prefer to invest?

2. Is Fall/winter a good time to buy rental property? Do you buy at this time? is it hard to find tenant?

 Both are probably fine in general. Fort Worth is geographically quite large and has very distinct different pockets that need to be paid attention to. Fort Worth is also growing like gang busters right now; one of if not the fastest growing in D/FW. McKinney is also growing very fast depending on what data you use. 

Which one are you closer to? Which one can you get the best numbers? How long do you intend to hold?