Plano vs. Denton

[Krystle Padilla]

Hello all,

I'm active duty currently living in San Diego, CA with my husband. At the end of this year, we're planning on buying in either Denton or Plano (or Richardson) due to the location of UNT and University of Texas at Dallas. We're psyched to begin our REI through BRRR and flipping but here's the problem: we've never been to Texas!

So here's my question: which is a better market for real estate, Plano (area) or Denton? 

We've looked on Area Vibes, Yelp, Googled both cities, Realtor.com, talked to many people from Texas and from the Dallas area but nothing beats talking to investors from the area. 

What can we expect? Which cities do you prefer? Which neighborhoods are the best?

Krystle

[Jason Jones]

I live just north of Plano in Allen. IMO Plano housing is in a complete bubble right now. Pricing at $110-$120 Sqft for homes that need complete remodels, new hvacs, foundation issue, etc. Big ticket items that will need to be addressed and cost even more. I put offers in on several homes over the past couple of months and lost out to cash buyers who have offered more than offering price and more than I think it is worth. People are speculating the market will continue upward to the moon. I'm not just buying anything because it's in Plano. It seems people outside of the area and in other states have been told Plano is the place to go. Well it's not what it used to be and if you want to purchase a rental or are looking for sub $300k houses you are looking at central and east Plano which is a declining area, older homes, average schools, etc.

Now contrast this to a home I have under contract now and will close in a few weeks. It's in Lake Dallas (just south of Denton). It was built in 2000, It's 1700 sqft has high ceilings and is more modern. I'm purchasing for $90 a sqft, needs minor fixes (new carpet and a couple of other things) will rent out for $1600-$1700 a month. MUCH better than I could find in Plano, The Colony, Carrollton, Allen, etc. Lesson: There are many areas around DFW. Look for the ones that meet your criteria and have not become the place everyone is competing so hard and has caused a huge bubble. IMO Denton, Corinth, Lake Dallas (All north of Lewisville Lake) and then North Fort Worth around Speedway and Alliance Airport are areas that are still affordable and good deals can be found along with a safe bet for continued appreciation.