Denton Investment Properties

3 Replies

I've heard from multiple sources that Denton is a good area for investment properties in DFW area. 

My question is, for Denton is it better to focus on student housing (so houses/condos within walking distance to UNT or TWU) or for single family homes geared towards non-students or graduate student families?

Any other tips on Denton investment properties (especially for those with recent experience in that area) would be much appreciated!

@Alfie Park I love Denton personally. It's likely where I will be looking for my next SFH rental. I've posted before but I do not prefer any homes with an HOA and definitely not condos but for some that may be their desired route. I've had a handful of clients purchase SFR's in Denton and rented out each room individually and been able to capitalize on their ROI that route.

I think renting to students can be tough, but there are a lot of people successful with this. Condos rarely work well for investments when the HOA dues eat your returns. Plus there are very very few condos in Denton. One trick is students often want leases that run with the school year? Also many don't qualify income wise....so then you are looking at taking guarantees....and in the end, even if you have a guarantee if it is 3-4 students living together paying $2000/month and 3 of the 4 move out, how willing do you think the parents of #4 are to pay out the lease for the 3 that move out.

I think I'd be looking for grad students, professors, university staff or other people working in the area....but everyone has a different model and many models can work.

Thanks for the insights everyone! 

I decided to make my first purchase in far north suburbs (Frisco/Prosper/McKinney north of Eldorado). Got in around $200K and should be able to generate a little positive cash flow with more emphasis on long-term appreciation given terrific schools, commercial/highway development, and companies moving HQ's more north (e.g. PGA, Dr Pepper).

Posted about it on this thread:

https://www.biggerpockets.com/forums/758/topics/751326-help-first-investment-property-in-north-dallas-suburbs?page=1#p4418627