Commonly overlooked rental property expenses in greater Dallas?

4 Replies

I'm looking at BRRR-ing in the greater Dallas area specifically east Dallas (Garland/Mesquite area). As an out-of-state investor from Colorado, I'm curious about commonly overlooked rental or rehab expenses?

i.e. I hear Garland/Mesquite inspectors can be pretty strict so budget more for permits etc

Another example may be the local rentals/ rehab market requires updating to double-pane windows. (I don't know if this is true just using it as an example). 

Thanks!

I would avoid mesquite.  Their rental CO program is very strict.  I know someone that just had to replace the driveway to get the CO for a renter.  Garland just has strict code compliance.

@Gavin Estenssoro - if you are looking specifically at Garland or Mesquite, both cities are very thorough with their rental inspections and requirements.  Check out the website for each city and if needed contact code enforcement to get a current checklist for the certificate of occupancy.  @Dane Ohlen is 100% correct, Mesquite is the more difficult of the two, though if you have boots on the ground, an in  person conversation with the head honcho at city hall usually helps.  

Not sure about those two cities, but some require hard-wired, interconnected smoke detectors - costs more to put in than regular battery operated...

Also, generally to North Texas:  it gets damn hot down here, so HVAC systems take more of a beating.  We have cruddy clay soil that moves constantly and causes all sorts of issues with the slab foundations, resulting sheetrock cracks, etc.  I have to send a handyman out from time to time to re-adjust doors when there is a lot of movement. 

Good luck,

Andy

Thanks @Andy Webb & @Dane Ohlen that's exactly the type of info I was looking for. 

Replacing a drive way and Interconnected smoke detectors. Wow I've never heard of such rental requirements. 

Are there any other nearby cities I should avoid/ where you've heard such restrictive rental requirements exist? i.e. Thoughts on Rockwall or Balch Springs?

I've been hearing a lot about COs in the Dallas forums. What is the concern with them? Do they need to be renewed every time the property transfers ownership or are most Dallas jurisdictions strict on them? CO's have never been an issue for properties in my local Denver market and are hardly even an afterthought. Most properties will just have one unless they are very distressed or a new build.

Originally posted by @Gavin Estenssoro :

Thanks @Andy Webb & @Dane Ohlen that's exactly the type of info I was looking for. 

Replacing a drive way and Interconnected smoke detectors. Wow I've never heard of such rental requirements. 

Are there any other nearby cities I should avoid/ where you've heard such restrictive rental requirements exist? i.e. Thoughts on Rockwall or Balch Springs?

I've been hearing a lot about COs in the Dallas forums. What is the concern with them? Do they need to be renewed every time the property transfers ownership or are most Dallas jurisdictions strict on them? CO's have never been an issue for properties in my local Denver market and are hardly even an afterthought. Most properties will just have one unless they are very distressed or a new build.

 The CO issues in Dallas are more with respect to commercial.

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