newbie looking for more info on DFW rental property

6 Replies

My name is Nick. I have been a member on BP for a while, but this is my first post in the forum. I'm currently working in Amarillo, TX, and planning to move to DFW area in the next 1.5 or 2 years. I'm planning to buy a duplex or single family and rent it out. I'm trying to gather as much as info I can before making decision to buy. I'm planning to buy <200k if it is possible. Here are my questions:
1. What website/tools can I use to buy cheap/foreclosure houses in DFW? 
2. Is DFW still a good market for rental property?
3. What is the average mortgage interest rate now?

Welcome to DFW.  

We don't see a lot of foreclosures any more, but there are some.   You can purchase lists if you want to buy for cash on the courthouse steps.  If you want REOs, that you can finance, a great realtor can set up a search for you for your price range, area, and for specifically bank owned homes.

There are plenty of investors still buying homes to rent....very competitive market and you're also competing with owner occupants, so be prepared.

The deals are more common in the areas around DFW. Look for working class communities and you can still find deals for a brrrr, although other Texas markets such as Houston and San Antonio will be more investor friendly. 

If going the brrrr route, wholesalers are a good route in these markets. Just educate yourself on dealing with them. These cities have strong investor communities so reach out to locals and go to meetups. 

As for interest rates, you are looking at around 4% on conventional I believe, but I haven’t checked conv rates in a min. 

You will need to get familiar with the foreclosure process and the exemption status in detail for the state of Texas. Next, you will want to see the Sheriff's sales for the county you want to buy in. It is important to note things like landlord-friendly areas or tenant-friendly areas. There are tax foreclosures and REO or bank foreclosures. Always know the ramifications good and bad of obtaining either. Most properties for most counties' tax sales/foreclosures can be found at and as well as the county. These lists are different and will not be all tax properties you will see at the auction. Why? you might ask, the reasons vary greatly and may be relevant to you and they may not. Your risk is greatest when you are ignorant or uninformed or both, make certain you are neither or harbor as little of these as possible. You will need to register with the county to bid. You will have to do this in most cases at least a week prior and don't be surprised if a great number of the properties fall off before auction as this is common. You need to search tax records and property records for anything you want to buy and I suggest going through this entire process and attending a couple of the super Tuesday auctions before you are ready to buy to get an idea of what you will pay etc. It works you can get what you are looking for but you will have to do your homework and once you have all of this down and understood I would point you to the idea that everyone is better off if you can get the current owner to a deal in advance of the foreclosure. This is a very nuanced thing to do and is done by many disreputable people as well as many well-meaning people. It is hard and it is work but its a great return if you have done your homework and you would be better off betting on the Cowboys to make the Superbowl with all your money if you don't.

I live in Richardson and there just aren't too many duplexes that come on the market in the DFW area. Taxes are too high IMO for a rental house in the current marketscape. 

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