San Diego, CA · Member since 2015 · 41 posts · 13 votes
I WILL BE FLYING TO DALLAS TO LOOK AT SOME PROPERTIES TO INVEST IN. I AM WORKING WITH A TURNKEY REAL ESTATE INVESTMENT GROUP. THE AREAS THEY ARE FOCUSING ON ARE IN DALLAS, FT WORTH , ARLINGTON AND EVERYTHING IN BETWEEN. THE PROPERTY PRICES ARE HIGHER AND GOING UP FAST. THEY ARE RANGING FROM 130-200K. RENTS ARE IN THE RANGE OF 1300-1700. I KNOW PROPERTY TAXES CAN BE HIGH. CAN SOMEONE ADVISE ME IN THE AREAS TO LOOK FOR AND WHAT AREAS TO AVOID? THANK YOU.
Rental Property Investor · Dallas, TX · Member since 2012 · 502 posts · 263 votes
10y
@Christy Greene Yes, taxes are high here in DFW. Historically the tax appraised value lagged the market value, but it has almost caught up. Taxes on some of my rental properties have gone up 30-50% over the last 2 years. Expect to pay around 2.7% of the property value in taxes every year (so $225 per month on a $100k property). If that property meets the 1% rule and rents for $1000 per month, that means taxes are costing you over 20% of gross rents. It gets hard to meet the 50% rule when taxes eat up such a large chunk.
That said, for cash flow I would focus on first ring suburbs such as Garland and Mesquite. Arlington is good too, and generally Tarrant County will have better cash flow than Dallas County, but less chance for appreciation. Be careful of the neighborhoods you are buying in from a turnkey operator - I have seen a lot of overpriced turnkey properties in neighborhoods I wouldn't touch because out of state buyers don't know any better and they "cash flow" (at least until the first eviction).
As far as cash flowing properties near Frisco, don't waste your time looking - it's not going to happen. If you go further out toward Little Elm / The Colony you might be able to find something.
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
10y
Christy Greene,Before you leave for Dallas I would try to contact the local real estate investment clubs and ask them where is the best rental neighborhoods and where to avoid.Personally,I would look for multi family units near the major universities and biggest employers like the airports and entertainment areas.
San Diego, CA · Member since 2015 · 41 posts · 13 votes
10y
Looking to invest in areas where schools are better and close to employment centers. IF anyone has duplexes that are ready to go , or SFR s , please let me know. I know it is a long shot but if anyone knows of any properties that are near Frisco, Texas that cash flow, that would be great to. If you anyone knows of a reputable real estate agent that works with investors, that would be a help too. We flew to Jacksonville to look at properties and we are now looking at Texas. Thank you! : )
Real Estate Investor · Prosper, TX · Member since 2016 · 17 posts · 4 votes
10y
Hi,
I live in Prosper which is north of Frisco and Plano. Right now...demand far outweighs supply. Check out this mornings real estate news which may give you some insight: http://bizbeatblog.dallasnews.com/2016/04/spring-b...
Take care,
Mike Jordan
PS; looking forward to my first deal as a newbie!!!
Rental Property Investor · Dallas, TX · Member since 2012 · 502 posts · 263 votes
10y
@Christy Greene Yes, taxes are high here in DFW. Historically the tax appraised value lagged the market value, but it has almost caught up. Taxes on some of my rental properties have gone up 30-50% over the last 2 years. Expect to pay around 2.7% of the property value in taxes every year (so $225 per month on a $100k property). If that property meets the 1% rule and rents for $1000 per month, that means taxes are costing you over 20% of gross rents. It gets hard to meet the 50% rule when taxes eat up such a large chunk.
That said, for cash flow I would focus on first ring suburbs such as Garland and Mesquite. Arlington is good too, and generally Tarrant County will have better cash flow than Dallas County, but less chance for appreciation. Be careful of the neighborhoods you are buying in from a turnkey operator - I have seen a lot of overpriced turnkey properties in neighborhoods I wouldn't touch because out of state buyers don't know any better and they "cash flow" (at least until the first eviction).
As far as cash flowing properties near Frisco, don't waste your time looking - it's not going to happen. If you go further out toward Little Elm / The Colony you might be able to find something.
San Diego, CA · Member since 2015 · 41 posts · 13 votes
10y
WOW!!! Thank you so much for your information. I think you have given me the most information from anyone I have spoken with. I noticed that many of the homes in Arlington are going for 80k-180k that need fixing up. Could you please tell me what specific parts in Arlington?
The property taxes are insane!! This could easily eat into profits. I am planning to put at least 50% down if not all cash. I will look into those areas that you recommend. : 0 )
Real Estate Agent · DFW, TX · Member since 2016 · 44 posts · 24 votes
10y
Christy Greene I am an agent in DFW that works with investors, if you are not working with any agents down here I would love to help. I rebate on purchases as well.
South as well as West Arlington are great areas. You can find properties elsewhere in Arlington however I prefer South & West. Keep in mind the other great cities such as Mansfield and Burleson (Just happen to be south of Arlington).
BP Member/ Joseph Owen sold my flip in West Arlington and is a good contact to have.
Hi Christi, I live in North Arlington. Homes in North Arlington range from $200k-$10Million. Not a whole lot of single family rentals here in the north Arlington area. We have lots of apartments in Arlington to compete with. If you go to Mid or South Arlington, you find homes from $60k-$150k with rents from $1,000 to $1,700 per month and they are your blue collar neighborhoods. Mid and South Grand Prairie are good place to look also. I have my reservations about turn key guys. I know some folks from California who bought investment homes around here and were sold on the strategy of appreciation. No offense, but people seem to take advantage of out of state folks. Be cautious and ask lots questions.
San Diego, CA · Member since 2015 · 41 posts · 13 votes
10y
thank you for the insight. I noticed that some of the turn key guys focus on appreciation. I learned from another investor to never buy on the speculation of appreciation. If it's not going to cash flow, not going to buy. Thank you for the insight.
You may have more luck further away from cities such as Plano or McKinney, it is getting hard to find deals in those areas and the price point most investors target (less than $200k) has very low inventory at the moment which makes getting an offer accepted difficult.
I personally do not have a ton of experience in Arlington but I have heard good things. There are some good areas further north of McKinney or our near Wylie as well.
Rental Property Investor · Cincinnati OH · Member since 2012 · 115 posts · 24 votes
10y
Also if you are set on turnkey type deal then you might check out DallasInvest (MemphisInvest). We did our very first deal with them and were very happy with their approach.
San Diego, CA · Member since 2015 · 41 posts · 13 votes
10y
I would like to get more information on Mckinney. I see that is near Plano which has corporations such as Mistubishi, Pepsi Co, Raytheon, etc. IF there are properties where the numbers are 100k or so, I would love for her to show us around the area when we are in town. Thank you.
Mansfield, TX · Member since 2015 · 22 posts · 7 votes
10y
I have lived in the Mansfield/Arlington area for years, and I worked in Grand Prairie (GP) for 3 years. I can say these are all great areas to invest in if not the best in the metroplex.
Mansfield has the best school district in this area with the lowest crime rate, and also some of the highest property taxes around... but you should have no problem renting a house out to a nice family, very high desireability here.
GP has greatly improved their schools over the years, so I think it will have big desirability in the next 5 years for families to move in. Houses can be had very cheap here, just be careful as there are some ghetto/high crime neighborhoods.
I like Arlington the best for investment because there is a college, Jr. college, and tons of people moving into the area, plus two stadiums, six flags, and other entertainment (possible VRBO weekend rentals??) Schools/crime are slightly below average.
Hopefully the market cools off some by September for your sake, as houses in these 3 areas are selling very fast. If you have any questions about certain areas when you are looking just message me here!
San Diego, CA · Member since 2015 · 41 posts · 13 votes
10y
@Logan Gilbert Thank you for the insight. Will start looking into those areas. I have a lot to learn about Texas. The area is so big and so many neighborhoods. Things can change from street to street.