Investing on rental properties in Midland/Odessa TX

5 Replies

I am looking to invest in rental properties in Midland /Odessa area. Cash flow is pretty good at least on paper. 1% rule can be met in Midland area compared to DFW area where the market is extremely hot. Does anyone in the community have experience in investing in rental in Midland area? Any advice for new investor trying to make a start in the area.

Anything will be helpful. Thank you.

Just FYI, Midland/Odessa is an oil town so it will follow the boom and bust of oil prices. I would factor that in if I were planning a long term buy and hold.

Neil, is exactly right.  The Permain Basin is a one trick pony.  When oil is booming which it is right now, business is real good.  When the bust occurs, the area can look like a ghost town/area.  Be careful in what you invest in.  

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Originally posted by @Dharshana Ratnayake :

I am looking to invest in rental properties in Midland /Odessa area. Cash flow is pretty good at least on paper. 1% rule can be met in Midland area compared to DFW area where the market is extremely hot. Does anyone in the community have experience in investing in rental in Midland area? Any advice for new investor trying to make a start in the area.

Anything will be helpful. Thank you.

 You are about 10 years late! I'm not saying you can't still find a nice cash flowing rentals because you can.  

Midland and Odessa is not a place for rookie investors.  When the next oil bust comes underfunded and over leveraged investors will be homeless. I play in this area and have seen grown men cry, lose everything and even commit suicide.

But hay come down the oil is deep and there's money everywhere right now just make sure you have a truck load of money and an exit plan.  Just don't make that exit plan a 45.

@Dharshana Ratnayake I'm a local REALTOR, investor and builder. I work with investors whom have been buying properties to flip and also to keep as rentals. The issue we are experiencing is finding good enough deals to rehab but if you are looking to hold for rentals those are still easier to be found. Word of caution is not to overextend your credit or ability to repay in case of a big drop in rental prices. This can be achieved by not catering to the higher end properties and instead work the middle to slightly under market where houses can be purchased for a much lower price yet still ask for very good rental rates.