Real Estate Agent · San Diego, CA · Member since 2016 · 46 posts · 41 votes
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?
Allen, TX · Member since 2014 · 74 posts · 22 votes
10y
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.
Real Estate Agent · Allen, TX · Member since 2015 · 106 posts · 13 votes
10y
I would say Plano is the better market because of the all the big business headquarters are being moved to Plano. However Plano is far more expensive compare to Denton. All the areas in Plano are pretty good.
Flipper/Rehabber · McKinney, TX · Member since 2015 · 381 posts · 72 votes
10y
It sounds like you're interested in student housing. I would for sure invest in Denton TX over plano if you're looking for strictly student housing. Your returns in Denton would be higher in my humble opinion and there are two universities in a smaller town. Plano as already stated has huge competition currently while buying.
What price range are you interested in? How important are schools?
As far as real estate investing I would not limit myself just to those cities. If you start in Richardson and head North on US 75 and then West on US 380 to Denton you will not find an area bad to invest in.
Real Estate · Oak Point, TX · Member since 2015 · 44 posts · 15 votes
10y
I am a local Realtor here as well as an investor. I live in between Denton and Plano but a little closer to Denton. I also grew up in this area so I feel like I have an advantage in Denton since I know it so well. Like stated, if you were doing rentals or looking for the college group Denton is by far the best option but I would say both are growing equally. Plano has a stronger "executive" group coming in with the Cowboys facilities going up, toyota, state farm etc etc. Denton is still going like crazy too with houses selling in under a day on the market. We look at ALL Denton and Collin county for a deal. Deals are somewhat hard to find right now so we take them wherever we can find them. Depending on your exact plans one may be better then the other but for what I know so far I would say you can't go wrong with either as long as you get a good deal on your investment.
Investor · Richardson, TX · Member since 2015 · 8 posts · 2 votes
10y
I think everyone posting so far has said really good advice, so the only other thing I can think to contribute is that for student housing, Denton would likely be better. I currently live in Richardson and I went to school at UTD. Both UNT and UTD have student housing, however, UTD has a high percentage of international students that would be staying on campus, which would limit your possible tenants.
Do you think that students would be willing to commute 15 minutes to get to college? Or would that only work if a house is between one or both of the colleges?
@Account Closed
That's good to know, are international students restricted to living on-campus?
Investor · Richardson, TX · Member since 2015 · 8 posts · 2 votes
10y
Hey Krystle,
I think only freshman are required to live on campus, however, most international students that I knew preferred on-campus or nearby apartments. In particular, many of them needed to be near Dallas Area Rapid Transit (DART) bus stops or stations since they did not have cars.
That's not good to hear, but I'm not surprised because the inventory for Denton and Plano are very low.
Just to be clear Plano is seeing that level of competition. The Denton market is aggressive but not to the level of Plano. With some effort of course, I still find investor friendly prices in Denton.
I live in S Plano, about 2 miles from UTD. I've lived in this neighborhood for 2.5 years. If you have any questions about the area or want help doing targeted research, fell free to call or message me.
As for my opinion, I live in Plano and love it. On the flip side, I think Denton is a dirty town and I can't stand going there.... Make of that what you will.
St. Thomas, VI · Member since 2015 · 24 posts · 29 votes
10y
I would lean towards Plano. Yes, Plano will bring with it more competition, but for good reason as it is a more desirable area. It will prove to be a better long-term investment as there is also lots of job growth in Plano.
Real Estate Lender and Broker · Dallas, TX · Member since 2013 · 966 posts · 500 votes
10y
The area by the North Dallas Tollway is booming. They are bringing in Toyota and several other large corporations. Will see people renting larger more upscale homes in the Frisco Plano market.
Albuquerque, NM - New Mexico · Member since 2014 · 1 post · 2 votes
10y
I lived in Denton for 6 years, where I received my BFA at UNT. We just moved to Albuquerque so my boyfriend could go to school at UNM for his masters.
The neighborhood north of UNT campus : Oak st to University Dr, between Bonnie Brae and Carroll is the best student neighborhood. Easy bike ride to school and you don't have to cross Carroll drive. Also the neighborhood just south of campus Eagle Dr to I 35. Houses do not stay on the market, you will ALWAYS rent.
South East Denton is the slummier side of town but at the rate the town is growing that side will slowly start to get snatched up by investors. There is no real "ghetto" in Denton though, violent crime is pretty low (minus the two isolated events recently).
A lot of property management companies in Denton are terrible, so if word gets out that you don't abuse your student tenants you can easily do great business there. Word gets around quickly.
Tip, make sure those rent houses are strong because Denton is a huge party town. Beware of that.
Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
10y
@Krystle Padilla - you will probably have better appreciation in Plano, but I agree with @Lance Wakefield that you will see better returns in Denton. We have started giving the Denton area greater focus. Plano is just too darn expensive.
Frisco, TX · Member since 2016 · 11 posts · 1 vote
10y
I've lived in Plano and realized real quick that unless you have a large sum to invest, Plano isn't too ideal. Even east Plano. I'm looking into Denton as well as its more practical starting out and they are investing a lot of money into Denton as well. It's not like how it was years ago.
Real Estate Agent · San Diego, CA · Member since 2016 · 46 posts · 41 votes
10y
Thank you everyone for your responses! Keep adding comments if you think there's something else I've missed. For us, since we're starting out Denton would be the better city. Richardson, and the cities north of them are good areas (and with beautiful, good communities), but our money will stretch much further in Denton. Plus, that doesn't mean that we can't invest in the North Dallas area later on.
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
10y
It completely depends on your end game. Denton & Plano are completely different markets...not even similar.
Are you looking for value, appreciation, good schools, the ability to live in it for a couple of years and then hold on to it as a performing rental, etc.? What's your price point and what size/configuration are you looking for? The answer to those questions will determine the best area for you.
Richardson is fantastic for schools. East Richardson is probably the better for rentals, because property values are lower. Plano schools have declined in recent years, including West Plano. But, we're only talking about 2 cities in and among 10's. There are plenty of other places between Richardson and Denton, so a little more information to frame up what you're looking for would really help to point you in a better direction.
Allen, TX · Member since 2014 · 74 posts · 22 votes
10y
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.
That's exactly what it came down to, we felt Denton would rent better too compared to the purchase price of a home. Plus, the school's program is better for my education.
Real Estate Broker · North Richland Hills, TX · Member since 2013 · 1k+ posts · 607 votes
10y
Aside from purely objective factors, Denton is a really cool town that reminds me of a mini-Austin before it became so big. It has a great live music scene w/ a college town vibe.
Thanks Chris! We've talked to people from Denton and they seem to like it a lot. I think the culture vibes more with what we're looking for. I've brought it up at work and the Texans that work there get really excited when I say that I want to go the UNT.
Real Estate Agent · Ft. Worth, TX · Member since 2016 · 1 post · 1 vote
9y
@ Krystle Padilla,
I completely second what Kelly Courtney and Jason Jones said about Denton County opposed to Collin County (Plano). If you're looking to invest in wholesale properties that need "rehab" work, your initial purchasing prices will be much lower in Denton County.
This includes other conveniently located cities south of Denton such as Lewisville, Carrollton, Argyle, Lake Dallas, Flower Mound, and Highland Village. The two cities in Denton County closest to Plano are Little Elm & The Colony, which are basically extensions of Collin County but with a much cheaper price tag; there is even a pocket of Frisco that belongs to Denton County as well.
I've done graduate projects on Denton County clearly and even work here as a Wholesale Real Estate Investment Consultant. The advantages of Denton County are:
1) Lower Price Points than Collin County (Plano Area)
2) Close proximity just west of all the private sector "employment boom" of Collin County
3) Safety of Denton County
4) Closer proximity to DFW International Airport when connecting 35E/Sam Rayburn Tollway
5) Northwest of Dallas County and directly north of resources in the Tarrant County Mid-Cities (Colleyville, Grapevine, and Southlake).
6) Many of the purchase prices in Collin County (Plano) are higher due to the hype, but the profit margins are much slimmer when rehabbing properties due to the builds being fairly new.
The Texas Department of Transportation also started building a tollway connecting Denton County to Dallas in 2013 though the final stages of construction have not been declared yet. You can however bet home values of Denton County will increase greatly once construction concludes!
Accountant · Dallas, TX · Member since 2016 · 161 posts · 75 votes
9y
I'm a veteran and used MGIB benefits at UT Dallas for a Masters degree. I own a home in Richardson and would suggest Plano/Richardson if only for the quality of a UT Dallas education over UNT. It could be my opinion but I think the quality of UTD is higher than UNT.
I think home prices are steady here but house prices are being overpriced and sit on the market for a bit longer than they have in the last year. Richardson is not a 'college town' and it may be tough to find student renters unless you are within biking distance of the school (0-2 miles).
Honestly I don't know much about Denton, but for quality of life for a young couple I would think being closer to Dallas would be beneficial.
Investor · The Colony, TX · Member since 2014 · 192 posts · 66 votes
9y
I went to UNT. My wife went to UTD. Which school is best for you depends on your major. Which town is best for you depends on you.
Which place is best to get into college rentals, that's different. You can get more house for your money in Denton, and there's a bunch of older homes that are ripe for repurposing. The residential area around UTD in Richardson is nicer and pricey. It's been picked over by investors pretty well over the years. There's always a deal everywhere, but how hard do you want to look? There are affordable apartments nearby, just inside Dallas, but that's not an investment opportunity there - and I wouldn't want to live there (too ethnic for me - save the dumb comments for someone else, and too dangerous; a fair number of robberies have happened there). Denton doesn't have large, cheap apartments within walking distance to the school (that I know of), although there has been some small new developments in the past few years. Gotta go finish changing out a kitchen sink. Good luck, and feel free to PM me if you have any other questions.