Looking to invest in Central Texas (DFW & SA)

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Looking to invest in Central Texas (DFW & SA)

Stephen Burden
Rental Property Investor · Portland, OR · Member since 2018 · 16 posts · 4 votes

I'm a buy and hold investor from Portland, Oregon. I'm looking for my first rental and one of the markets I'm to target is the Central Texas area for buy and hold properties. Somewhere within an hour commute to one of the major cities (Dallas Fort Worth, San Antonio, Austin areas). My first few properties would ideally need light cosmetic rehab as I'm not looking to take on large rehab projects while I'm out of state and still building my team.

I'm interested in SFR's and Small Multifamily 2-4 units under 200k. Primarily Lower crime areas with decent demand for rentals, ideally C+ and above neighborhoods. I'll be financing the first few properties with Conventional mortgages. I'm interested in Texas for the appreciation aspect but I mostly care about Cash Flow.

I'm currently doing a lot of research about the areas but would like to network with people who have boots on the ground. Just looking to learn as much as possible about the local area and what areas to avoid etc.

Thank you!

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Stone Saathoff
Investor · San Antonio, TX · Member since 2019 · 576 posts · 307 votes
6y

@Stephen Burden San Antonio is a great market but year 1 cash flow isn't the absolute best. Our biggest draw is more so the appreciation you can get. Clean or close to rent-ready properties in the more desirable north side areas tend to be priced a bit higher than usual right now due to the scarcity of people selling. If you're considering value-add deals or properties in areas that are still up-and-coming I believe San Antonio is a better fit for this right now.

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  • Larry Hudson
    Member since 2020 · 2 posts · 0 votes
    6y

    Howdy Stephen, 

    I enjoyed seeing your post and was curious to why you chose those areas of Texas only.  There is nothing wrong at all with those choices, I was just curious about your criteria...and how you came up with that area.

    I myself am in Houston.

    Regards,

    Larry

    0Reply
  • Stephen Burden
    OP
    Rental Property Investor · Portland, OR · Member since 2018 · 16 posts · 4 votes
    6y

    I'm open to Houston as well. The cities I mentioned seem to come up pretty often when researching for cities to invest in.

    0Reply
  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    6y

    @Stephen Burden congrats on deciding to make the leap into real estate. I have several agents, and mortgage brokers in DFW I can refer. Message me if you need either. FYI I don't check BP everyday so it may be a few days for a response.

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    2Reply
  • Lucia Rushton
    Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    6y

    @Stephen Burden. I am so glad to hear that CF is most important to you. Many parts of Texas have seen great appreciation in the last 5+ years. In the short we may see a plateau (in my opinion) so I always advise my clients to make sure they run their numbers to be CF+ and then appreciation is an added bonus in the end.

    Best wishes on picking the city/area that works best for you.

    1Reply
  • Stone Saathoff
    Investor · San Antonio, TX · Member since 2019 · 576 posts · 307 votes
    6y

    @Stephen Burden San Antonio is a great market but year 1 cash flow isn't the absolute best. Our biggest draw is more so the appreciation you can get. Clean or close to rent-ready properties in the more desirable north side areas tend to be priced a bit higher than usual right now due to the scarcity of people selling. If you're considering value-add deals or properties in areas that are still up-and-coming I believe San Antonio is a better fit for this right now.

    2Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    6y

    Welcome to Texas....cash flow can be a little tough here in the beginning, but you should be able to work in to it with time.  Lots and lots of companies moving to Texas, so buy in the path of progress.   Sounds like you have a good plan.

    1Reply
  • Rob Lee
    Real Estate Broker · Dallas, TX · Member since 2016 · 248 posts · 240 votes
    6y

    Congratulations on finding BP and narrowing down your areas of consideration. My wife and I have been investing in DFW since 2013. We have been very happy with our decision to do so. The real estate market here remains quite strong. Are your other investments in C+ neighborhoods? I ask because of our personal experience. 

    We have owned both A and C+ properties. Even when the economy is good tenants who reside in C+ neighborhoods can find it difficult to make rent payments. Our A properties are leased to tenants with higher incomes. We have had little to no issue collecting rent. Apologies if I am telling you something you already know. Best of luck in your search.

    1Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    6y

    I think you're a bit too broad, being open to more cities is going to make it impossible to find a deal. And do you mean $200k per unit for a multi? I've never seen a 4 unit for less than $200k (okay, maybe, but it needed $50k of work to be livable).

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