I have some experience investing in other markets ( SFH fix and flips and a few rentals.) I am looking to get into the Dallas area for obvious reasons.
If anyone could breakdown some Market Specifics for me that would be greatly appreciated.
I am looking for general knowledge. Things to look out for (structural damage, flood plains, zip codes that are seeing so much activity that the market is becoming overly competitive and driving up acquisition prices.) Overall patterns in which zip codes are next.
Title companies do closings, not attorneys, correct? Transfer tax?
I know some of those are broad questions, but just spit balling and looking for some info. Any help would be appreciated!
I think a couple of the biggest things to look at are foundations and roofs. There are certain areas that tend to have more foundation problems than others. Some people will tell you the foundation is fixed and has a lifetime warranty. However that is not a FREE warranty, just a reduced price to repair again. Some fixes probably last a long time, but some areas it is just a temporary fix...and foundation issues are ongoing. We also have a fair amount of hail storms....so roofs are often something to look at as well. In my general experience seems like we get about 8 years out of a 20 or 30 year roof due to storms.
Title companies are typically run by attorneys, but realtors right the contracts on promulgated forms. Great realtors have great contacts with board certified real estate attorney's if there are questions or issues to resolve. No transfer tax.
The market here is pretty hot, especially in the investment price range. Lots of people moving here, lots of growth, lots of companies moving here. Several employers hire thousands. Think of State Farm, Uber, Liberty Mutual, JP Morgan, Toyota, and many others.
Buying in the right place depends on a lot of things...for example how much money you have....Park Cities has generally had great returns, but might be a million to get in....not uncommon for people to tear down million homes, but not everyone can play in that game.
One of our local billionaires Ross Perot, says if you want to make a billion in real estate, buy in the path of progress. So that is something to consider.
I also suggest my investor clients look at what people make....then back into the numbers. Think about who rents, how much money they make, then take 1/3 to 1/4 of that that they can afford for rent, then back into that number for what kind of house you want to buy or less than that. I'll say the majority of the rent calls I get are $1500-$1700 or less. There are people that pay a lot more than that, but the number who do get smaller and smaller as you move up the price range.