DFW rents stagnating?
I am talking specifically about cities north of Dallas such as Plano, Frisco and McKinney and single family homes in the A and B classes.
Last year I was only able to raise my rents by a nuisance amount and then only on about half my portfolio. This year it looks like I won't be able to raise them at all. I am getting top of the market rent in my neighborhoods already. About 5 to 5.5% cap rates.
Meanwhile the property taxes march higher every year. Roughly 10% last year and 10% this year. My cash flow is getting squeezed out.
It is interesting to note that back in 2012 before this market took off that the rents started increasing significantly before the prices did by about 12 to 16 months. I wonder if stagnating rents are a precursor to stagnating prices at the tail end.
I anyone else getting squeezed by rising property taxes and stagnating rents or is it just me? What kind of cap rates are you guys getting in these cities for these class properties?