Flower Mound, TX · Member since 2016 · 30 posts · 24 votes
It seemed like only a few years ago that it was a bit simpler to make money in the DFW market, but recently I've been hearing a fair bit of cynicism related to buying and renting single-family homes. Is this true or do we simply need to work harder? I would like to finally get started investing here, but according to many the timing doesn't sound good.
What's working out there? What areas are still desirable from an investment perspective? How are people finding deals? I know price appreciation and taxes are compressing profits, but surely some things must be working... any direction/feedback is appreciated.
I think the market has finally crested and prices are gong to start coming back to sanity. Many newer investors are going to find they can't make profits because they overpaid at the purchase.
Don't buy into a bad deal. Be willing to wait until you find a good deal. Dallas is investable for someone with patience and discipline.
Definitely don't let the distance scare you out of OKC. We have a really stable market with solid cashflow. There is plenty of opportunity and at this point, you really don't need to be local to be able to make deals happen. Between facetime and having a solid boots on the ground person, there really isn't much that you can't get a feel for out of state. OKC is seeing a ton of out of state investors coming into our market, so a lot of lenders, agents, property managers, etc are coming up with great systems to help these investors. Feel free to send me a message if you want to discuss the market or any strategies for out of state investments. (I work with a lot of out of state investors but I also have my own out of state investment property, so I've seen both sides of the process).
@Frank Klarich no denying the distance has a potential to add a bit more fear into the project. But there's a lot you can do to safeguard your confidence. Talk with others that your provider has worked with, read reviews, overview past deals, go meet the team! If 100 other people tell you that they loved the process, you might be a bit less shaky when taking the leap! You're going to cash flow and have higher cap rates in OKC vs DFW hands down.
Just moving to Plano for my wife's career. We sold our investment property in Minneapolis in the last year and have some money to put to work, but I have a lot to learn about the DFW market and am not going to rush anything. Thanks for this thread. Good to have everyone's input and see that I am right to be quite cautious and conservative. Going to be looking hard for where the young and hip are moving, where new restaurants and bars are opening, what rough neighborhoods are cleaning up. We had great luck buying into an up and coming neighborhood in Minneapolis.
I agree with those that said that property taxes are making it really difficult in this market. I've begun to try to do wraps instead of rentals for that reason. I recently completed my first, and it's bringing in 435/month. I'm in middle of another that I will either flip or wrap.
I agree with @Melissa Barnard. Money is cheap right now and prices are starting to flatten out. I just closed on a duplex last week that I found on the MLS in downtown Round Rock with FHA. Purchase was $310k, $3k earnest, sellers paid $5500 in closing, lender covered $2k @ 4% and all I had to cover at closing was $5439.28! Oh and it cashflows. MLS deals are out there but you have to make offers and find creative ways to make it even better. I'd love to have some MF's in the Dallas area in the next few years.