Rental Property Investor · Member since 2018 · 19 posts · 5 votes
Hello BP :)
Long time reader and listener and first time posting.
Is it a good time to buy an SFR in Frisco now? I am looking into buying and holding owner-occupied, live in it for one year or so then use it as a rental and repeat.
The house I am considering is 300k 3/2 1850SF in 75035 Frisco. in move in condition, so no forced appreciation there.
How does this plan sound in lights of the current market?
Real Estate Agent · Dallas, TX · Member since 2016 · 432 posts · 341 votes
7y
@Bishoy Takla I’d be curious to see what the reasoning behind that particular house would be. There’s a lot of factors that can come into play - but at 300k you will never profit in a year with you’re mortgage. You will be paying additional $$ on top of your rental income every month to afford the mortgage.
Real Estate Agent · Dallas, TX · Member since 2016 · 432 posts · 341 votes
7y
@Bishoy Takla I’d be curious to see what the reasoning behind that particular house would be. There’s a lot of factors that can come into play - but at 300k you will never profit in a year with you’re mortgage. You will be paying additional $$ on top of your rental income every month to afford the mortgage.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
7y
I think not. Sales prices vs rent in Frisco is not investor friendly. Great place to live for your family, but that house for your family is not normally a great investment property. In my opinion way way way too many of these $300K and $400K properties on the market for rent in Frisco. Numbers work better where you can buy below $200K and as close to $100K as you can get ...although that is tough anywhere close to Frisco. You can still get somewhere under $200K. Think about who rents. Think about what they can afford. You can back into your sales price numbers this way....and typically that's not more than about $200K on the sales price. That means you have to probably look north of Frisco....Denton, Little Elm, Aubrey, Sanger, Valley View, Anna, maybe Prosper, maybe Celina, maybe Melissa.
Lender · Richardson, TX · Member since 2014 · 537 posts · 228 votes
7y
For me, a house is either one I want to buy to live in or an investment property. As Bruce mentioned above, the criteria for those are exclusive of each other.